833.51/672: Telegram

The Secretary of State to the Minister in Uruguay (Lay)

10. Your 14, February 27, 5 p.m. Please communicate without comment the following reply of the Foreign Bondholders Protective Council:

“The Foreign Bondholders Protective Council, Incorporated, is very happy to receive an indication that the Government of Uruguay is prepared to undertake discussions looking to an arrangement for service of its dollar bonds. Before the Council can give full consideration to the suggestions already made it would like to be clear in its understanding on two matters: First, is the proposal now made intended to cover a temporary arrangement during the pendency of the existing world-wide depression, or is it intended to be a conversion plan by which new bonds shall be issued for the present outstanding bonds. Second, does the proposal for equality of treatment with the French and English mean a proposal for proportionate equal treatment based upon different contractual services, or an identic flat rate for both sterling and dollar bonds. The latter plan would result in great discrimination against the dollar bonds.”

Hull