LEND-LEASE AGREEMENT BETWEEN THE UNITED STATES AND
               URUGUAY, SIGNED JANUARY 13, 1942 6
   [The Lend-Lease Agreement between the United States and the
Republic of Uruguay signed at Washington January 13, 1942 (not
printed), provided that Uruguay was to repay $7,800,000 of the
scheduled cost (about $17,000,000) of the armaments and munitions
transferred by the United States to Uruguay, in installments of not
more than $1,300,000 before January 1, 1943; $2,600,000 before Janu-
ary 1, 1944; $3,900,000 before January 1, 1945; $5,200,000 before
January 1, 1946; $6,500,000 before January 1, 1947; or $7,800,000
before January 1, 1948. The agreement, otherwise, is substantially the
same as the draft of the basic agreement printed in Foreign Relations,
1941, volume VI, page 139.]


DISCUSSIONS WITH THE URUGUAYAN GOVERNMENT REGARDING
  (UTILIZATION OF GERMAN SHIPS REQUISITIONED BY URUGUAY
800.8830/1602a: Telegram
  The Secretary of State to the Ambassador in Uruguay (Dawson)

                               WASHINGINN, May 27,1942-7 p. m.
  303. The Department realizes from your many recent telegrams
that the Uruguayan Government is greatly preoccupied by the in-
creasing difficulties in shipping. The Government and exporters and
importers have made abundantly clear to you that they believe Uru-
guay is not receiving as favorable treatment as other countries, par-
ticularly Argentina, in space allocated on vessels in trade between
the United States and Uruguay.
  The Department and the War Shipping Administration have re-
viewed this situation and in recent telegrams have brought about
readjustments which go a substantial distance toward relieving the
complaints which have been brought to your attention.
  It is clear, however, that for some time to come there will be an
extreme shortage of shipping. It therefore becomes extremely urgent
that the four Uruguayan ships 7 be placed immediately into efficient
operation. The operation of these ships would make possible the
carriage of greater quantities of Uruguayan exports and imports.
  There appear to be two aspects of the problem of placing the
Uruguayan vessels into service. One of these is fears of submarine
danger. The United States is now supplying petroleum to Uruguay
and most of Brazil by sending tankers around the west coast of

8 For correspondence regarding the negotiation of the agreement, see Foreign
Relations, 1941, vol. VII, pp. 549 if.
7 Ships of Axis Powers requisitioned by Uruguay.



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URUGUAY