833.5151/236
The Chargé in Uruguay (Dominian) to the Secretary of State
[Received October 29.]
Sir: The importance of the removal of exchange restrictions in Uruguay as an aid to the country’s international trade led me to inquire of the Director of the Bank of the Republic, in the course of a conversation which I had with him on October 15, as to whether there existed any likelihood of a total return to free exchange transactions in Uruguay. I have the honor to report that the Director stated that every effort was now being exerted by the appropriate agencies in Uruguay to reestablish the system of free exchange trade at the earliest possible moment. According to him, each step taken in the exchange control system adopted during the last two years constituted a stage in approaching the goal of the total removal of exchange restrictions. He stated that he now hoped that exchange control would be totally removed in Uruguay in the course of the first six months of 1935, unless some unforeseen event should force its continuation.
In making this statement, however, the Director of the Bank stated that control over importations would not be lifted as he, along with the Government officials entrusted with the supervision of the import and export trade were of the opinion that the control over imports recently inaugurated would have to be maintained until complete economic recovery of Uruguay had taken place and until they thought it necessary to prevent the importation of articles which were deemed unnecessary, although not classed as luxuries.
[Page 662]It would appear, therefore, that the difficulties with which exporters to Uruguay have been contending would not disappear entirely with the abolition of the exchange control system, but that the maintenance of a restrictive supervision over imports to Uruguay might still be attended by hindrances of the order which have been experienced lately in connection with exchange problems.
Respectfully yours,