I visited Montevideo on Wednesday, January 17, a date which was more convenient to the Uruguayan authorities than Friday, January 19, the date I had originally planned to go there. The Minister of Foreign Affairs was away on summer holidays and my appointment was arranged with the Under-Secretary, Dr. Eduardo Jimenez Arechaga, who is also the Acting Minister. Incidentally, the appointment was arranged through the Uruguayan Legation in Buenos Aires and I found on my arrival in Montevideo that no communication had been received from Dr. Luis Soto²⁹ although he assured both Sicotte³⁰ and me that he had sent an airmail letter to his government on or about November 16 last.

I saw the United Kingdom Ambassador before going to the Foreign Office and learned from him that one of the things which most disturbed the Uruguayans was our failure to open an office after taking preliminary steps in Montevideo, such as looking for living and office accommodation. Therefore, when talking to the Acting Minister, I reviewed in considerable detail the developments which led to the government's decision to postpone the opening of an office in Uruguay. I emphasized that our attitude was not different from that of 1946 when an exchange of diplomatic representation was first discussed with them and that as soon as we were in a position to expand our service in Latin America, Uruguay would have a place of priority.

I indicated that the present international situation, about which all democratic countries like Uruguay and Canada were becoming increasingly concerned, might result in Canadian offices being opened in certain areas where Canadian representation might produce benefits for both our countries. I thought it advisable to make known this possibility to avoid later misunderstanding if we should open in some European country before establishing an office in Uruguay. I told him also our plans for double accreditation in Portugal and of the difficulties we were experiencing because of staff shortages in appointing an Ambassador to Argentina. I spoke too of the increasing pressure upon Canada from countries where no Canadian diplomatic office now exists and who were anxious to exchange representatives with us.

After this full explanation of our position, I said that Mr. Pearson had asked me to visit Montevideo during my tour of Latin America, first, to reassure the Uruguayan Government that Canada was anxious to maintain and develop the good and friendly relations which had always existed between our two countries and to continue the cooperation which we had always extended one to the other in the international field and, second, to explore possibilities which might enable us to have an exchange of diplomatic representatives which both our countries desired. I mentioned that it had occurred to me personally that a formula of double accreditation such as Canada now had in certain European countries might be the solution. Dr. Arechaga replied that he was sure this would be an acceptable arrangement to his government. When I asked him to suggest a Head of Mission whose territory might also include Uruguay, he proposed our Ambassador to Argentina.

I was careful to make no reference to a permanent office under a Chargé d'Affaires being established in Montevideo. (You will recall that when I discussed the matter with George Heasman, he stated that Trade and Commerce would be prepared to assign a trade officer to Montevideo to be in charge of our office there during the absence of our Ambassador.) I asked what additional expenses would be involved for Canada, what would be the further responsibilities for our Ambassador to Argentina and what would be the increased demands on his time. Dr. Arechaga said that he could think of no additional expenses with the exception of the Ambassador's travelling costs when he visited Montevideo. The further responsibilities and the demands on his time would involve merely visiting Montevideo infrequently when some current item of business between our two countries required his presence in that city for discussions with the Uruguayan authorities. You can see, therefore, that there is little additional cost involved for us although we can expect, I am sure, the Uruguayans to press at some future date for the establishment of an office in their capital under a Chargé d'Affaires, if not for the appointment of a separate Head of Mission. However, there is no such request at this time and I think that these arrangements are highly satisfactory from our standpoint.

I made clear that as an official I was in no position to make any commitment on behalf of the Canadian Government but that I would, on my return to Ottawa, acquaint the Canadian Government with these recommendations and I had every reason to believe that it would be prepared to authorize the small additional cost which would be involved for our Department. On his side, he explained that he too would have to put the matter formally before his government but he was reasonably certain it would be approved and that he would communicate such approval to our Chargé d'Affaires in Buenos Aires. In view of Soto's neglect in arranging my appointment, I considered this to be much the best channel to follow. It is probable that you will be hearing from Roy³¹ before my return to Ottawa and can then initiate the necessary steps.

Yours sincerely,

HERB [MORAN]