833.51/984: Telegram
  The Acting Secretary of State to the Ambassador in Uruguay
                            (Dawson)

                              WASHINGTON, April 13,1942-3 p. m.
  195. Your 270, April 9, 5 p. m. The Government of the United
States is always prepared to consider and discuss any measures of
cooperation suggested to it by the Government of Uruguay. Some
time ago at the request of the then Uruguayan Minister there were
opened credit lines by the Export-Import Bank to the Government
of Uruguay and to the Banco de la Repuiblica. Uruguay has never
made any attempt to utilize these.
  The credit standing of Uruguay is good and the Department is
prepared to recommend and the Export-Import Bank to consider any
reasonable program of financing. The priority situation would make
it very difficult to supply Uruguay with materials needed for any
extensive public works program, but your telegram indicates that pub-
lic works to be carried out would not require imported materials.
                                                         WELLES

833.51/986: Telegram
  The Amba~sador in Urmguay (Dawson) to the Secretary of State

                                 MONTEVIDEO, May 13, 1942-3 p. m.
                                            [Received 4: 07 p. In.]
  364. From Spaeth 34 for the Under Secretary. The intimate rela-
tions between the economic situation here in Uruguay and the political
objectives which we are seeking to accomplish in cooperation with
Doctor Guani induces this special reference to economic matters. Al-
most every day the Foreign Minister renders some significant as-
sistance to the work of the Committee and we will, of course, be
increasingly dependent upon him and the Government of Uruguay.
This aid in political matters would seem to justify the viewpoint that
special efforts should (be made to guard against unemployment and
economic unrest. The Ambassador and his staff are properly con-
cerned about the economic problems which are developing as a result
of inadequate shipping facilities, the iron and steel allocation and the
lack of [apparent omission]. These problems are, of course, com-
mon to the hemisphere, but I am satisfied that Uruguay is in a par-
ticularly vulnerable position at la time when we badly need her po-
litical assistance and when it is particularly important that Uruguay
appears to receive substantially better treatment than Argentina.

  C Carl B. Spaeth, member of the Emergency Advisory Committee for Political
Defense.



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URUGUAY