800.8830/1590: Telegram
The Amrbassador in Uruguay (Dawson) to the Secretary of State

                                 MONTEVIDEO, May 29,1942S- p. m.
                                             [Received 6: 30 p.m.]
  433. Department's 303, May 27, 7 p. m. As duly reported by Naval
Attache,'2 Colonia and Presidente Terra sailed for United States At-
lantic ports May 24. Maldonado is still undergoing repairs and
should be ready in 2 weeks to a month. Nothing has been done with
Tacoma and I understand that port authorities are awaiting instruc-
tions from Guani before proceeding to place her in service.
  From a recent remark made to me by Guani and from other reports
I understand that the President and Rodriguez Luis 13 are not well
disposed towards Moore-McCormack and feel that the company has
tried to exert pressure in various ways in order to obtain the vessels.
I shall discuss situation with Guani early next week along lines of
your telegram when I receive text of latest Moore-McCormack pro-
posal which Clarendon is bringing me on Monday.14
                                                          DAWSON

800.8830/1592: Telegram
The Ambassador in Uruguay (Dawson) to the Secretary of State

                              MONTEVIDEO, May 30, 1942-1 p. m.
                                             [Received 1: 47 p. m.]
  436. Department's 303, May 27, 7 p. m. and my 433 May 29, 5 p. m.
I believe that Guani in particular has from the outset been concerned
over the eventual postwar difficulties with the owners of the requisi-
tioned vessels and their Governments. It occurs to me that our efforts
to induce the Uruguayan Government to transfer the vessels to Amer-
ican operation might be materially facilitated, if by so doing Uruguay
were to be relieved of all responsibility as respects eventual claims. I
believe that it would be particularly helpful if we offered to assume
in Uruguay's stead all responsibilities respect eventual claims based
not only on its action in transferring the vessels to United States
but also on its original action in requisitioning the vessels. Naturally
such an offer would refer only to vessels transferred to American
operation.
  I should appreciate an early reply.
                                                         DAwSON
 12 Comdr. Frank Loftin.
 "Adm. Rodriguez Luis of the Uruguayan Navy.
 "June 1.



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