833.51/710

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

No. 264

Sir: I have the honor to refer to my despatch No. 255 of June 4, 1936, with respect to my suggestion to the Acting Minister of Finance that Señor Jorge West, President of the Bank of the Republic, be authorized to deal with the Foreign Bondholders Protective Council regarding Uruguay’s dollar debt, while Señor West is in the United States next month.

The Acting Minister called at the Legation yesterday, under instructions from the President, and informed me that Señor West’s stay in the United States would be so short and his entire time would be occupied with business of the Bank of the Republic that he would be unable to deal with the Council on the question of an adjustment of the debt. I then suggested to the Acting Minister that the Uruguayan Minister in the United States or some other representative [Page 940] now there be authorized to deal with the Council but he did not favor this suggestion. Confidentially, I do not believe Dr. Charlone, the Minister of Finance, is willing that anyone except himself should discuss with the Council any adjustment of the Uruguayan dollar debt.

I understand from a reliable source that Señor West will be in the United States only eight days and during that time he will consult with representatives of the Federal Reserve Banks in New York and Washington with regard to making connections between these banks and the Bank of the Republic of Uruguay similar to the contacts recently made between the National Bank of the Argentine and the Bank of England and the Bank of France. Señor West will go from the United States to England to discuss similar arrangements for the Bank of the Republic.

Respectfully yours,

Julius G. Lay