833.5151/279: Telegram
The Chargé in Uruguay (Dominian) to the Secretary of State
[Received 11:52 a.m.]
15. Referring to Department’s telegram of February 14, 6 p.m., No. 2, Legation’s despatches 957 of February 4th and 970 of today’s date16 constitute the report requested. I am informed by managers [Page 962] of oil companies that their lawyers state that their case for alleged discrimination in favor of the state-owned company has strong legal grounds on which to claim redress. However, serious consideration must be given to the active efforts of the state-owned company to assume increasing control of the oil selling industry in Uruguay and the propaganda of nationalistic character which it is carrying on to secure practical monopoly of the business.
As a result of my discussions of the subject yesterday morning with the Minister for Foreign Affairs, we agreed that the immediate calling of a conference between representatives of foreign oil companies, of the state-owned company and of the Exchange Control Commission might lead to a satisfactory adjustment of the various difficulties lately experienced by the foreign oil companies and steps are now being taken to bring about such a conference.
- Despatches not printed.↩