811.20 Defense (Wool)/579a: Telegram

The Acting Secretary of State to the Ambassador in Uruguay ( Dawson )

471. From Board of Economic Warfare.

“Your 539 June 29,2 wool surplus referred to not regarded as an abnormal carry-over at this period of the season. Wools finer than 44’s are exempted from M–63 until August 16. As a result, private purchases have been stimulated and presumably unsold balances of such grades have been reduced.

We are not desirous of acquiring Uruguayan wools at this time, but to assist the situation are prepared to consider the purchase of a substantial part of the exportable surplus from the current clip comprising 64’s down to 46’s qualities, good combing fleeces, skirted, of standard packing acceptable to United States wool trade at 10 percent below current prices. This conforms with our Agreement with the British Wool Control, under which we have obtained substantial supplies Australian wools at lower base prices less a similar discount. It is proposed to buy up to 10,000 bales of the existing exportable surplus on the above basis through Boston representatives of Uruguayan shippers. This is not to be construed as an intention on the part of the United States to make a similar arrangement for next season’s clip, and such an interpretation is to be discouraged.

It is firmly believed by our commodity authorities that all carryover of this class of wool will be absorbed through usual United States trade channels in due course if Uruguayan holders prefer to wait such a development.

Your views on the above-mentioned proposals will be appreciated.”

Welles
  1. Not printed.