103.917/5453
The Ambassador in Uruguay (Dawson) to the Secretary of State
[Received December 8.]
Sir: I have the honor to refer to the Department’s circular airgrams of November 13, 12:10 p.m.,98 November 13, 12:20 p.m., November 13, 12:30 p.m. and November 13, 12:40 p.m.,99 concerning the proposed elimination of certain articles and materials from Decentralization Plan A.
The proposals covered by the Department’s airgrams under reference, to become effective on January 1, 1944, have been considered by the Embassy and the Country Agency, and will be treated together as a group in this despatch, since the proposed changes in procedure will apply to them equally. Exception is made only in the case of farm machinery, a discussion of which was the subject of the Embassy’s despatch no. 3579 of November 29, 1943.1
There is enclosed with this despatch a translation of a letter from the Uruguayan Contralor de Exportaciones y Importaciones (Country Agency)1 which was prepared by that organization as an exposition of its position with respect to the proposed changes in Import Recommendation procedure, and in reply to the Embassy’s inquiry on [Page 291] that subject. From this letter it will be seen that the Country Agency agrees, in principle, to the proposed changes, but points out that it must retain control over the import of the materials to be removed from Decentralization procedure, except for farm machinery and equipment which it will permit to be imported without prior intervention on its part.
The attitude of the Country Agency has consistently been, and according to its legal functions must continue to be, that it must retain prior right of approval for importations, whether subject to Import Recommendations or not, in order to rationalize the expenditure of the country’s foreign exchange resources and to prevent the influx of an undue quantity of those articles classed as luxury goods. In the case of the articles and materials now suggested for removal from the Decentralization Plan, the Country Agency proposes to institute the internal licensing procedure now in effect for commodities valued at more than $25.00 (U.S. currency), whose export from the United States may be accomplished under general license. Under this internal procedure, the Embassy is given an opportunity to review each case for consignee control, and to determine whether the transaction may actually be carried out without Import Recommendation under existing regulations. (Embassy’s despatch no. 3535, November 20, 1943,2 file 820).
In sum, therefore, it can be stated that the Uruguayan Country Agency will agree to the proposed changes outlined in the Department’s airgrams under reference, with the understanding that it will continue to exercise internal import licensing control.
Respectfully yours,
Commercial Attaché