File No. 711.12/132a
[Enclosure]
MEMORANDUM
The President, in addressing the Mexican editors whom he received at
the White House on June 7, took occasion to reiterate his sentiments
of friendship for the Mexican people.1 To drive home to the Mexican people the
settled conviction that the President is determined to translate
into concrete and tangible form his expression of friendship for
Mexico has been the problem which has engaged the particular
attention of the Department for the past six weeks. The following is
a brief history of the Department’s efforts to meet and solve this
problem.
On April 6, 1918, the Mexican Secretary for Foreign Affairs presented
to Ambassador Fletcher a note to which was attached a list of
commodities needed by Mexico. This list was immediately forwarded by
the Department to the War Trade Board and to the Food Administration
and conferences were held with a view to the readjustment of our
conservation policy with reference to the needs of Mexico as set
forth in the list. At the conclusion of this conference the
Department under date of June 24, 1918, telegraphed to Ambassador
Fletcher asking his suggestions as to the most practicable way to
meet Mexico’s needs. The Department suggested to Mr. Fletcher the
advisability of seeking an interview with President Carranza in
order to express the desire of this Government to give tangible
expression to the friendship which it has always
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entertained towards Mexico. The
Ambassador was authorized to assure President Carranza that this
Government earnestly desires the political integrity and the
commercial prosperity of Mexico and that it would gladly cooperate
in supplying Mexico with her needs in exchange for such portion of
that country’s products as she did not herself imperatively require.
He was also authorized to suggest the willingness of this Government
to send to Mexico City a commission to confer with Mexican officials
in order to adjust the questions now pending between the two
countries.
On June 28 Ambassador Fletcher informed the Department that he had
had a very cordial interview with President Carranza and had
informed him of President Wilson’s desire to translate into action
his friendly sentiments for Mexico and that President Carranza had
appeared greatly pleased and said that he thought intercourse both
personal and commercial between the two countries should be
normalized and the restraints now being put upon commerce and
communication removed so far as possible. President Carranza added
that if something were done along these lines he was of the opinion
that all difficulties and show of resentment would speedily
disappear. As to a loan, he stated that proposals of a tentative
character had been made by a few private American bankers and that
little had been accomplished because of the realization that without
the sanction of the United States Government the loan could not be
obtained. President Carranza felt that nothing could be gained by
negotiations with these private concerns and admitted that the
United States was the only place where Mexico could obtain the loan.
He declared that he was not in any way obligated to any banking firm
in this country. The Ambassador then assured President Carranza that
he saw no reason why this matter could not be arranged. He suggested
a conference, but President Carranza thought such a move unnecessary
as he had little faith in conferences and preferred to deal directly
with the Ambassador. He assured the Ambassador that he would be
pleased to receive him at any time with a view to putting into
effect the “new” policy of President Wilson.
On July 2, 1918, the Department telegraphed the Ambassador that as a
result of the conferences of the War Trade Board and the Food
Administration it had been learned that corn and pork products might
now be exported to Mexico in a much more liberal manner, and the
Ambassador was informed that he would shortly be instructed to make
a statement for publication in the Mexican press.
Following this, on July 6, 1918, the Department telegraphed the
Ambassador that the Department of State had arranged for a more
liberal policy governing the granting of export licenses for
shipments to Mexico, always, of course, subject to the restrictions
imposed by the United States Trading with the Enemy Act, and the
United States Enemy Trading List. The Ambassador was authorized to
make the appropriate announcement in the Mexican press, but was
instructed to make it plain that our Government had found it
necessary to conserve for itself and for the use of the Allied
Governments certain articles which would be permitted, ordinarily,
to go to Mexico; but that, on account of increased production, the
list of articles which have been prohibited is becoming shorter, and
the necessity for the strict application of the embargo likewise
decreasing; and that export licenses for the following products
would now be issued in the manner indicated:
- Between now and November, 1,500,000 bushels of
corn.
- Pork products—licensed freely; also the following
foodstuffs: butter, mutton oil, oleo oil, barreled beef,
corn meal, corn flour, oats, peas (not seed), tea, cocoa,
condensed milk, canned sardines, canned herring, dried
fruit, and confectionery, including chocolate candy.
- Common soap—License to be granted for 2,000 tons.
- Mining machinery—Licenses will be liberally granted, where
required for production of metals.
- Cyanide—since there is not sufficient to meet the demand,
all countries have been rationed with respect to this
commodity. However, Mexico is now being allowed sufficient
cyanide for its gold products.
- Dynamite, caps and fuse—being licensed as required for
mining purposes.
- Copper—While it is doubtful that this country can afford
to give licenses for copper in manufactured form to an
amount equal to 10 per cent of the total importation of
copper from Mexico, licenses will be granted, in so far as
possible.
- Zinc—Same rule applies as governs copper.
- Ferromanganese—Licenses can be granted only to limited
extent, because of great demand and shortage in this
country.
- Agricultural machinery—Licenses will be granted liberally
for its exportation.
- Coke—If drawn from districts which will be specified,
licenses will be granted.
- Articles of steel and iron manufacture, which are
mentioned in the request of April 6, of the Mexican Foreign
Office—This is very indefinite. As a rule, licenses will be
freely granted for all articles of iron and steel not used
by this country for producing war material. On account of
the necessity for conservation, this country restricts the
exportation of these commodities to all countries.
- Railway machinery and materials, as shown in the enclosure
to the note from the Mexican Secretary of Foreign Relations
(No. 294, dated April 6, 1918.)1—Licenses will be granted for
everything except structural steel, bronzing sheets, sheet
steel, ingots, boiler tubes, copper tubes, bars or pipes,
plant for the manufacture of boiler tubes, unless it be a
secondhand plant, which could be spared. Licenses would
probably be granted for some new shop tools of varying
classes, but unless some secondhand general shop machinery
could be spared, exportation of this machinery would be
difficult. We could spare only secondhand material for a
car-wheel and locomotive foundry. We are making it possible
for the Monterey Iron & Steel Co. to turn out at least
10,000 tons of 75-pound rails (which is one of the items in
the list attached to the request of the Mexican Secretary of
Foreign Relations), and with regard to the other item, which
calls for 20 locomotives, 10 sleeping cars, and 5
combination express and baggage cars, we cannot promise
these now, on account of the shortage in this country.
However, it may be possible for the Mexican Government to
purchase a few of these which may not be needed in this
country (for instance, second-hand ones), and, in such case,
we would be pleased to consider granting a license.
- Ammonia—In regard to licenses for its exportation, Mexico
will be given the same treatment applied to all other
Central and South American countries; that is to say, no
licenses granted for the purpose of beer-making, but granted
when it is to be used for ice-making, refrigerating, and
foodstuffs.
The Ambassador was authorized to state that the foregoing list was
not meant to be exclusive; that it was possible that, from time to
time, this Government might find itself in a position to add
thereto, and that, should such a condition arise, it would be
pleased to give careful consideration to any request for additions
which might be made by the Mexican Government.
The Ambassador was instructed to make it clear, in any announcement
which he might make, that, in giving this demonstration of its
friendliness, this Government relied on Mexico’s continuing to allow
the exportation to this country of such commodities as were not
imperatively needed by her; and that it also relied upon Mexico not
to permit the reexportation of such commodities as will, under this
plan, be granted export licenses from the United States to
Mexico.
On Wednesday afternoon, July 10, 1918, Ambassador Fletcher gave out a
statement for publication in the morning papers of July 11. This
statement embodied the matter set forth in the telegram last above
outlined.
