345. Telegram 298008 From the Department of State to the Embassy in Uruguay1
298008. Subject: Meeting With Wilson Ferreira. Ref.: Montevideo 4335.
1. Department Officers categorically denied Ferreira’s allegations of US involvement in Uruguayan political crisis of last May and asked him how he got that erroneous impression. Ferreira replied that he learned of Embassy involvement from “his own people” in the GOU, whom he “naturally” could not identify to US. Department Officers said they were aware from the Embassy’s reporting that rumors to this effect had been circulated in Montevideo, but repeated that they were not rpt not true.
2. Department Officers informed Ferreira that USG assistance to Uruguay was very modest indeed. He replied that although direct USG assistance might be small, the recent growth of Uruguay’s external debt proves that private lenders as well as international financial institutions are encouraged to support Uruguay by the well-known favorable attitude of the USG toward Uruguay. In this connection he asked why the USG was giving such strong support to Vegh Villegas. Department Officers replied that the USG was not supporting Vegh as an individual, but had given its blessing to Vegh’s economic reform plan, which promised to pull Uruguay out of the economic stagnation from which it has been suffering for a number of years.
3. More detailed report on the conversation has been air pouched to you.
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Summary: The Department outlined its response to the charges made by Ferreira.
Source: National Archives, RG 59, Central Foreign Policy File, D750441–0200. Confidential. Drafted and approved by Jack M. Smith of ARA–LA/APU. The pouched report on the conversation has not been found. Telegram 4335 from the Embassy in Uruguay to the Department of State is Document 344.
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