812.113/10237

The Ambassador in Mexico (Sheffield) to the Secretary of State

No. 4206

Sir: Referring to my telegram No. 218 of May 31, last, twelve noon, transmitting for the Department’s information translation of a Presidential Order of May 30, 1927, forbidding Mexican Government Departments to purchase commodities for their use in the United States, I have the honor to report that this morning’s press publishes an official statement from the Foreign Office, of which the following is the translation:

“The Department of Foreign Affairs declares officially that the Order which the President of the Republic issued a few days ago regarding the suspension of purchases in the United States by dependencies of the Federal Government was based, among other considerations, upon the damage caused by a substantial investment of money representing purchases made and not only refers to merchandise acquired in the United States, but also to the case of merchandise obtained in Europe which has been detained in transit through the United States with corresponding injury. The Order of the President by no means constitutes a boycott of American merchandise, since it is limited to preventing dependencies of the Federal Government from buying in the United States without prejudice to their purchasing them in Mexico, without taking into consideration whether they are American or not.

“Consequently, the order referred to tends to safeguard the financial interests of the Government and to prevent delays in goods which are necessary to it, and this can in no manner affect the cordial relations existing between Mexico and the United States.”.

[Page 240]

Press statements accompanying the publication of this official declaration of the Foreign Office indicate that it has been given out from official sources “that not only were obstacles being placed in the United States in the way of the transport of war materials, but that restrictions were being imposed even upon barb wire intended for agricultural fences and upon articles destined for the repair of railroads and rolling stock ordered in the neighboring country by the National Railways”.

This would seem to be in harmony with the Embassy’s surmise that the information contained in its despatch No. 4193 of yesterday’s date67 and emanating, among others, from Lionel Dalkowitz, who had purchased a quantity of barbed wire in the United States, was correct.

I have [etc.]

James R. Sheffield
  1. Not printed.