FOREIGN RELATIONS, 1942, VOLUME VI



  (3) In view of purposes of loan, flexible nature of program, and
manner in which projects would have to be undertaken, any loan
arrangement should give the Uruguayan Government great latitude
to use the funds when and where needed.
  (4) Before recommending that request for loan be presented
through official channels, I should appreciate instructions as to
whether Department prefers that matter be taken up by Uruguayan
Government through its Embassy in Washington.
  (5) Further details by airmail pouch.
                                                       DAWSON

833.51/1001: Telegram
  The Acting Secretary of State to the Ambassador in Uruguay
                           (Dawson)

                         WASHINGTON, October 10, 1942-1 p. m.
  610. Your A-81, September 26, noon. Department prefers that
matter be taken up by Uruguayan Government through its Embassy
in Washington.
                                                        WELLES

833.51/1004
The Ambassador in Uruguay (Dawson) to the Secretary of State

No. 1807                         MONTEVIDEO, November 11, 1942.
                                       [Received November 19.]
  SIR: I have the honor to refer to my airgram A-81 and my des-
patch no. 1642 both of September 26, 1942,41 and to previous cor-
respondence concerning the desire of the Uruguayan Government to
obtain a loan for financing public works.
  Reference is made also to the Department's telegram no. 610 of
October 10 stating, in reply to my query, that it prefers that the
official request for a loan be taken up in Washington through the
Uruguayan Ambassador.
  As explained in the closing paragraph of my despatch no. 1642,
this point had been left in abeyance in the memorandum which I
handed President Baldomir on September 24.
  Following the receipt of the Department's telegram no. 610, I pre-
pared a supplementary memorandum recalling the suggestion that
the Uruguayan Government prepare a program requiring very much
smaller quantities of iron and steel and adding that, as respects
  I Latter not printed.



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