833.5151/291
The Chargé in Uruguay (Dominian) to the Secretary of State
[Received March 18.]
Sir: Further with reference to the Legation’s despatches Nos. 970, of February 15, 1935, and 992, of March 1, 1935,18 relative to alleged discrimination against American oil companies in favor of the State-owned ANCAP19 oil selling and distributing agency, I have the honor to inform the Department that I have learned that the British Minister was instructed by cable on February 26th by his Government to make representations on behalf of the Shell Mex Oil Company about exchange discrimination against this British company and in favor of the ANCAP, for naphtha imported by the ANCAP and for which the State-owned institution had been granted official and part compensated exchange.
In the Legation’s despatch No. 957, of February 4, 1935,20 I pointed out the desirability of simultaneous, though independent, action by the American and British Legations on behalf respectively of American and British oil companies when discussing with the Uruguayan Government any phase of discrimination in favor of the ANCAP which jeopardized the legitimate operations of these oil companies. My despatch No. 970, of February 15, indicated that the Uruguayan Government acted very quickly in promoting a conference between the foreign oil companies and appropriate officials of the Uruguayan Government upon realization of the fact that complaint about exchange discrimination was being made on behalf of American and British oil companies by their Legations. The British Minister’s action in adding his representations to those I had made at the opportune moment, after receipt of the Department’s instruction No. 309, of January 21, 1935, has strengthened the position of all the foreign oil companies with regard to the claim they are making for equal treatment with the State-owned ANCAP institution. As the case under consideration involves similar interests of the foreign oil companies operating in Uruguay vis-à-vis the State-owned ANCAP organization, it is believed that close cooperation of the foreign oil companies is essential as long as the ANCAP continues to receive advantages which are denied to private companies.
Respectfully yours,