FOREIGN RELATIONS, 1942, VOLUME VI



ernment may be prepared to reconsider its determination to operate
the ships itself. I am the more convinced of the present inadvisabil-
ity of such efforts in view of what the Naval Attache tells me of his
conversations with naval officers and officials of the Port Adminis-
tration. He has the distinct impression that they are very "touchy"
on the subject of the vessels and strongly in favor of continued
Uruguayan operation.
  This does not, however, preclude suitable efforts on our part to in-
duce the Uruguayans to operate the ships expeditiously and efficiently.
I have talked with Dr. Guani along these lines and on June 11 I took
advantage of an opportunity to impress on Admiral Rodriguez Luis
the seriousness of the shipping situation and the great importance
of more effective utilization of Uruguay's tonnage. The Naval At-
tach6 is assisting me in endeavoring to obtain the cooperation of the
Uruguayan authorities in this manner.
Present Situation as regards Uruguayan Vessels.
  As was duly reported by the Naval Attache and noted in my tele-
gram No. 433 of May 29, two of the Uruguayan vessels, the Colonia
and the Presidente Terra finally sailed for United States east coast
ports on May 24.
  Repairs on the Maidonado (which is reported to have been in bad
shape) were recently completed. The vessel has made a successful
trial run, is to begin loading tomorrow, and is scheduled to sail for
the United States about July 2.
  After considerable delay (which appears to have been due largely
to hestitation or procrastination on the part of Dr. Guani), the
Tacomna is now being turned over by the Navy to the National Port
Administration with orders to proceed to place it in operation. The
Naval Attach6 informs me that no inspection has been made thus far
to determine the condition of the vessel with particular reference to
damage which may have been done by the former German crew. The
Naval Attache has repeatedly urged that such an inspection be made
promptly. He now understands that it will be made within a few
days as soon as the National Port Administration takes the vessel
over from the Navy.
  A further vessel, the Punta del Este (the former Dutch Vreden-
burg), will shortly be put into service. This is not one of the im-
mobilized vessels taken over by the Uruguayan Government but a
ship which went on the rocks off Punta del Este in 1939, was salvaged
by the National Port Administration, and has been repaired in the
Uruguayan Naval Dockyard. Incidentally, American experts agree
that the Uruguayan Navy has done a remarkably good job in repair-
ing what appeared to be little more than a useless hulk.
  Respectfully yours,                          WILLIAM DAWSON



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