833.51/593: Telegram

The Chargé in Uruguay (Dominian) to the Secretary of State

47. Department’s 31, July 10, 6 p.m. Following a conversation this evening with Foreign Minister regarding press reports from London referred to in above cited telegram the Minister confirmed British insistence on the total allocation of sterling exchange as indicated in Department’s July 10, 6 p.m., but added that Uruguayan Government was insisting upon retaining sufficient exchange to apply Uruguayan external debts to other than British creditors. Great Britain, he continued, still refused to agree to this Uruguayan suggestion of exchange distribution on the plea that British exchange should not be diverted to non-British uses. Nevertheless, the Minister stated that Uruguayan viewpoint of retaining sufficient exchange for other than British indebtedness would be maintained. He furthermore claimed familiarity with recent agreement between Argentina and Great Britain which he considered as fair. I shall see the Minister tomorrow and may report again.

Dominian