833.5151/464: Telegram
The Chargé in Uruguay (Reed) to the Secretary of State
[Received 10:45 a.m.]
9. My No. 7, January 19, 3 p.m.; No. 8, January 21, 11 a.m. and despatch No. 145, January 20.48 Board of Directors of American Chamber of Commerce in Uruguay held meeting last night at which I reported my interviews with the Ministries of Finance and Foreign Relations. No publicity has yet been given in local press to the position of American trade nor to my representations and the directors now feel that publicity is desirable. They are publishing report of meeting and suggest desirability of statement to Washington press by the Secretary of State regarding the protest made and the Department’s attitude toward Uruguay’s commercial policy. If this suggestion is approved the statement might be made as soon as possible to avoid coinciding with arrival of Minister Dawson49 February 1st.
Conversation yesterday with acting president of the Bank of the Republic indicates intention to continue strict enforcement of quota system. Foreign exchange available is apparently entirely allocated to countries with trade agreements or for recent government expenditures. Importation of American goods is likely to receive permanent damage resulting from uncertainty of maintaining stocks under quota system.
Richling’s50 statement that negotiations for commercial treaty would follow those with Argentina has been interpreted by part of local press as indicating early negotiations. La Mañana today refers to the initiation of negotiations from one moment to another for the purpose of increasing commerce with the United States which has recently been rather paralyzed as the result of economic disturbances which have affected the United States.