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NPIA! - 11 - Uruguayan waters for use by the United States. Uruguay's record during the world war was equally good. Late in 1939, a naval engagement took place in adjacent waters which attracted world wide attention and which has since been described by Winston Churchill as the first sizeable victory for the cause of the free nations. The German pocket battle- ship Graf Spee was raiding in South Atlantic waters when it was sighted by three British cruisers who gave battle. The Graf Spee was crippled in the engagement and sought refuge in the harbor of Montevideo. Terming this a violation of the neutral zone established around the Americas by the Declaration of Panama (1939), the Uruguayan Government courageously gave the Germans forty- eight hours to leave port. This was later extended to 72 hours and the German Commander, believing his ship too badly damaged to renew the struggle, sailed out of port and scuttled his ship within easy sight of thousands of Montevideans grouped along the water front. As Uruguay lacked ships or planes or guns to enforce its edict, its people proudly relate this incident as a moral vic- tory in a good cause. For the past decade, Uruguay has consistently lived up to its reputation as the model democracy of South America. While there is opposition, and in some places bitter opposition, to the socialistic character of its government, on the whole the people are intensely proud of its reputation as a laboratory for social and economic development. To the charge that many of its state-owned corporations lose

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    "ocrText": "NPIA!\n- 11 -\nUruguayan waters for use by the United States.\nUruguay's record during the world war was equally\ngood. Late in 1939, a naval engagement took place in adjacent\nwaters which attracted world wide attention and which has since\nbeen described by Winston Churchill as the first sizeable victory\nfor the cause of the free nations. The German pocket battle-\nship Graf Spee was raiding in South Atlantic waters when it was\nsighted by three British cruisers who gave battle. The Graf Spee\nwas crippled in the engagement and sought refuge in the harbor\nof Montevideo. Terming this a violation of the neutral zone\nestablished around the Americas by the Declaration of Panama (1939),\nthe Uruguayan Government courageously gave the Germans forty-\neight hours to leave port. This was later extended to 72 hours\nand the German Commander, believing his ship too badly damaged to\nrenew the struggle, sailed out of port and scuttled his ship\nwithin easy sight of thousands of Montevideans grouped along the\nwater front. As Uruguay lacked ships or planes or guns to enforce\nits edict, its people proudly relate this incident as a moral vic-\ntory in a good cause.\nFor the past decade, Uruguay has consistently lived up to\nits reputation as the model democracy of South America. While\nthere is opposition, and in some places bitter opposition, to\nthe socialistic character of its government, on the whole the\npeople are intensely proud of its reputation as a laboratory for\nsocial and economic development.\nTo the charge that many of its state-owned corporations lose"
}