633.116/62: Telegram
The Chargé in Uruguay (Reed) to the Secretary of State
[Received 4:35 p.m.]
3. Exchange control authorities have fixed import quotas for the month of January only and the United States is without quota although [Page 924] automobiles for which importers hold previous authorizations may be imported with free exchange. Importers of American goods have been patiently waiting for more than two months in the hope of resuming their interrupted business but importation from the United States is completely demoralized because of nonassignment of quota and many complaints are now being received by the Legation and Consulate General.
I have today discussed the situation separately with the Vice President of the Bank of the Republic41 and with the manager of the exchange control42 on which both of whom stated definitely that no quota would be assigned to the United States until its purchases of Uruguayan goods increased. They declare that dollar exchange purchases and sales including debt service leave the United States with an approximately balanced account for 1937 and decline to grant quota until Uruguay obtains a favorable balance with us.
I pointed out the undesirability of injuring trade by stoppages of imports undoubtedly temporary in view of the fact that the United States is second in importance among Uruguay’s customers but obtained no satisfaction.
Should I make immediate representations to the Ministry of Foreign Affairs or would the Department prefer to await a complaint from the American Chamber of Commerce in Uruguay? The Minister of Finance is out of town and I hope to see him tomorrow or Thursday but do not expect any results as he is only temporary.