between $4,000,000 and $5,000,000 and that approximately twenty
percent of this amount would be for local expenditures in Uruguay.
Mr. Warren L. Pierson, President of the Export-Import Bank, com-
mented with respect to this information that it is a policy of the
Export-Import Bank to avoid wherever possible the extension of
credits for- expenditures in local currencies. Se-nor Giorgi replied
that he would take up with the Rione the possibility of obtaining
credits in Uruguay for the local expenditures.


833.6463/86
Memorandum of Agreement Initialed by the Under Secretary of State
        (Welles) and the Urtguayan Ambassador (Blanco)


  1) The Government of the United States is prepared to cooperate
with the Government of Uruguay by providing all possible assistance
reasonably consonant with the functions of Government to United
States manufacturers to enable them to manufacture and export for
the Rione project material consisting of one turbine and generator
unit, one transmission line, and all other equipment necessary for their
practical operation, within a period of two years from the date of
the signature of the contract or contracts between the manufacturers
and the Rione, necessarily subject, however, to the emergency needs
of the national defense of the Government of the United States and
of the other countries which are actually fighting aggression.
  2) The Government of the United States is prepared to give con-
sideration through the Export-Import Bank to the extension of
appropriate credit facilities for materials and services to be furnished
by the United States manufacturers, in the event that such facilities
should be desired by the Uruguayan Government.
  3) The United States Government is prepared to assign an appro-
priately qualified technical expert as a representative of this Govern-
ment and particularly of the Export-Import Bank to facilitate the
carrying out of the project.
                               II
  In return for the assistance described under I;
  1) The Uruguayan Government agrees to remove the present Ger-
man consortium from all connection with the project at the site of the
project not later than the time of arrival at the Rincon del Bonete
Dam of the first shipment of material to be supplied by the United
States manufacturers and, in any event, not later than July 1, 1942.
The Uruguayan Government further guarantees that under no cir-
cumstances will German and United States personnel work on the
project at the same time except for preliminary engineering studies.



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