Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

UR–3. Memorandum of Conversation, by the Director of the Office of South American Affairs (Bernbaum)¹

Montevideo, April 28, 1958

PARTICIPANTS

• Luis Batlle Berres, Member of the National Council of Government
• Richard Nixon, Vice President of the United States
• Maurice M. Bernbaum (Interpreter)²

SUBJECT

• Disposition of Swift and Armour Packing Plants.

Batlle Berres brought to the Vice President’s attention during dinner the recent action of the Uruguayan Government in taking over the Swift and Armour Meat packing plants.³ He stated vehemently that this action had been required to avert a dangerous social situation and to prevent prolonged unemployment. He stated that he had received a visit last November from Edward G. Miller, ex-Assistant Secretary of State for Latin American Affairs, then representing the interests of the packing plants. Mr. Miller informed him confidentially of a decision taken by the Swift and Armour managements to close the plants the following month, December 14. Mr. Miller then stated that this decision had been taken without the knowledge of the Department of State—that the companies operated freely and made their own decisions without the need of consulting the Department of State. Dr. Batlle stated that he had inquired of Mr. Miller whether this was an irrevocable decision or whether it might be possible to work out a mutually satisfactory solution. Mr. Miller’s response was that the decision was irrevocable. Dr. Batlle Berres felt very strongly that the decision had been taken without consultation with the local representatives of the companies concerned and without any awareness of its significance in Uruguay. He then told the Vice President that in his opinion it would be a grave error for the U.S. Government to become involved in this problem. He pointed out that the company itself had emphasized the lack of consultation with the Department of State and that it correspondingly had no reason to request the intervention of the Department of State.

The Vice President stated that the U.S. Government had no intention of becoming involved in this problem. What did concern him, however, was the unfavorable impression already created in the U.S. tending to jeopardize the confidence of American investors in Uruguay’s traditional respect for private enterprise with equity and justice. He stated that he had a few hours earlier received a telephone call from Senator Dirksen of Illinois, protesting against the action taken by the Uruguayan Government. The Senator proposed to make a formal protest to the U.S. Government against this act of “expropriation”. The Vice President was also aware of the great concern of the meat packing companies involved and of the discouraging effect of their experience in other financial and investing circles in the U.S.

Dr. Batlle responded that there were many Dirksens in Uruguay—that those were at least six Dirksens in the Chamber of Deputies and at least three of them in the Senate. These Dirksens spoke Just a vehemently against the U.S. policies as did our Senator Dirksen against Uruguayan policies. He felt that we should not pay too much attention to them.

The Vice President smilingly remarked that the situation in the U.S. was somewhat more complicated than would appear. Senator’s altitude did carry a considerable amount of weight in U.S. public opinion as did the attitudes of responsible and important American firms. What concerned him was that their attitude was based on the apparent facts involved which did not permit as much stress on the political factors as was the case in Uruguay and which he, the Vice President, understood as a man in public life himself. He emphasized that it would be most unfortunate for the impression to become current in the U.S. that Uruguay had changed its policy and friendly attitude toward private enterprise. He hoped that this could be averted by a prompt and equitable solution to the problem.

Dr. Batlle Berres assured the Vice President repeatedly that there was no basis for such concern—that Uruguay’s tradition and reputation for fair dealing themselves represented a guarantee against such unjustified fears. He stated that he personally guaranteed to the Vice President that the companies would be fairly treated and that he was always ready to speak to them. He just hoped that they would not convey a misleading impression in the U.S. since they themselves understood the necessity for the action taken and the certainty of fair treatment.

The conversation continued in this vein until terminated by the commencement of after-dinner toasts.

Dr. Batlle Berres and Ambassador Lacarte later continued the conversation with Mr. Bernbaum. Dr. Batlle asked for confirmation that the Vice President has assured him that the U.S. Government would not intervene in the matter. Mr. Bernbaum stated that this was his understanding. He added, however, that the Vice President’s assurances had been accompanied by Dr. Batlle Berres’ assurances of fair treatment for the companies. It was his impression that the Vice President considered that Dr. Batlle Berres’ assurances represented a guarantee of fair treatment to the American firms. Dr. Batlle stated that this was a justified assumption. The companies were going to receive fair treatment, and he was ready to discuss the problem with them. He confirmed, when asked, that the Government’s proposal in Congress for authorization to pay the companies for their properties, would remain in Congress with the expectation of passage and eventual payment. He was most categorical on this point. The conversation terminated with Mr. Bernbaum’s request for Dr. Batlle’s authorization to convey his assurances to the companies. Dr. Battle gave that authorization with the statement that he had already conveyed such assurances directly and would continue to do so.

1. Source: Department of State, ARA Files, Lot 62 D 359, “American Meatpackers.” Confidential.
2. Bernbaum accompanied Nixon on the Vice President’s good-will tour to Latin America.
3. The financially hard-pressed meatpackers, who had determined to close out in Uruguay, made an offer to sell their plants to the Government of Uruguay, but on April 24, 1958, the Government issued a decree temporarily expropriating the plants. Documentation concerning the matter is contained in Department of State decimal file 411.3352.