833.73/51

The Chargé in Uruguay (Armour) to the Secretary of State

No. 801

Sir: With reference to the Legation’s despatch No. 792 of May 25, 192260 in regard to the renunciation by the Western Telegraph Company, Limited, of all special rights and privileges claimed in Uruguay, [Page 532] I have the honor to transmit herewith the copy and translation of a note received, on the 14th instant,60a from the Ministry for Foreign Affairs forwarding an authenticated copy of the dossier of correspondence exchanged by the above company and the Uruguayan Government.

The Department will note that the dossier in question is an exact copy of that transmitted as an enclosure to the Legation’s despatch referred to above. I am, however, sending the original enclosure, as received from the Foreign Office, in the belief that the Department may wish to possess it as a matter of official record.

I have [etc.]

Norman Armour
[Enclosure—Translation61]

Dossier Prepared by the Uruguayan Government Concerning Correspondence with the Western Telegraph Company

Testimony: Montevideo, February 7, 1922. His Excellency, the Minister of Industries, Dr. Luis C. Caviglia.—Robert H. Kibbey, Superintendent of the Western Telegraph Company, Ltd., in compliance with the instructions received from the Board of Directors in London, has the honor of informing Your Excellency that, in order to facilitate direct telegraphic communication between North and South America, via “Barbados Island”, this Company has resolved as follows:

[Here follows the text of the resolution of January 25, quoted in telegram no. 3, February 4, to the Chargé in Argentina, page 518.]

I greet Your Excellency with my highest consideration. (Signed) R. H. Kibbey

Ministry of Industries.—February 9, 1922.—Referred to the Council of Posts, Telegraphs and Telephones. (Signed) Caviglia.

Directive Council of Posts, Telegraphs and Telephones.—The Directive Council, in its session of February 23, 1922—act 1318—resolves to refer this matter to the Telegraph Commission. (Signed) Cesar Miranda, President.—G. Papini, Secretary General.

Telegraph Commission.—Honorable Council: The establishment of submarine cables in this country is governed by the law of October 17, 1919 which declares the service of cable communications open to all competitors and prohibits the concession of privileges, preferences or premiums to the companies. Therefore the Uruguayan Government is not in any way concerned with the agreement made between the Western Telegraph Company, Limited, and the All America Cables.—As in the attached note of February [Page 533] 15th, last,62 the Western Telegraph Company requests that, if the Executive Power acquiesces the renunciation, waiver, relinquishment, etc., the Chargés d’Affaires of Great Britain and the United States of America accredited to the Uruguayan Government be so informed, there is no objection, in our judgment, that the resolution passed be communicated to them. A copy of this dossier should be transmitted by the Executive Power to the High Court of Justice. The intervention assigned to it by Article 21 of the law of October 17, 1919, in the differences which may arise between the cable companies and the Executive Power might make useful to the former the knowledge of these antecedents. Montevideo, April 5, 1922. (Signed) J. Rampon.—Julio J. Ader.

Directive Council of the General Administration of Posts, Telegraphs and Telephones.—In accordance with the foregoing report of the Telegraph Commission, the Directive Council, in its session of April 5, 1922—act 1345—resolves that this dossier be transmitted with an accompanying note to the Ministry of Industries. (Signed) Rampon, Vice President.—G. Papini, Secretary General.

General Administration of Posts, Telegraphs and Telephones.—Montevideo, April 27, 1922.—His Excellency, the Minister of Industries, Dr. Luis C. Caviglia.—I have the honor to transmit to your Ministry the attached dossier in regard to the action initiated by the Western Telegraph Company with the object of facilitating direct telegraphic communication between the two Americas, the same having been referred to the General Administration of Posts, Telegraphs and Telephones, whose Directive Council, over which I preside,—in its Act No. 1345—approved the report of the Telegraph Commission. I reiterate to Your Excellency the assurance of my highest consideration. (Signed) Cesar Miranda, President.—L. M. Revuelta, Pro Secretary General.

Ministry of Industries.—Montevideo, May 3, 1922.—Referred to the Attorney General of First Instance for examination. (Signed) Caviglia.

Office of the Attorney General of First Instance.—The agreement that the Western Telegraph communicates to Your Excellency has for its object the reciprocal renunciation made by that Company and the All America Cables to the exclusive rights and preferences which they claim in various countries.

As it is not a merger agreement which would require the approval of the Executive Power according to Article 18 of the law of October 17, 1919, the Uruguayan Government is not in any way concerned. Therefore Your Excellency must limit yourself to making acknowledgment without recognizing any exclusive rights or preferences in [Page 534] the Western which, according to Article 1 of the said law, it does not possess in the country.

Nevertheless Your Excellency may decide as deemed best.
—(Signed) L. Varela.

Ministry of Industries.—Montevideo, May 11, 1922.—In accordance with the foregoing opinion, notify and file. (Signed) Caviglia.

Ministry of Industries.—Filing and Information Department.—I have notified the Company of the foregoing resolution.—Montevideo, May 13, 1922.—(Signed) F. Castillon.—H. W. Guimaraes.

  1. Not printed.
  2. Not printed.
  3. Filed separately under file no. 833.73/50.
  4. Not printed.