550.S1 Washington/486

Memorandum by the Chief of the Division of Mexican Affairs (Johnson) of a Conversation Between American and Mexican Representatives

Meeting: At Department of State, 3 p.m., May 11.

Present: The Secretary of State, Senator Pittman, Mr. Tugwell, Mr. Feis, Mr. Johnson, Mr. Alberto Pani, Mexican Minister of Finance, the Mexican Ambassador, Mr. Gomez Morin, Director of the Mexican National Railways and the Bank of Mexico, Mr. Arroyo, Chief of the Tariff Section of the Mexican Ministry of Finance, and Mr. de la Torre, Secretary to Mr. Pani.

The Secretary of State opened the meeting with general expressions of greeting to the Mexican Delegates.

Senator Pittman spoke at length in regard to the world silver situation setting forth the views of the American Government in regard to stabilization of silver values and the restoration of its purchasing power. He touched upon every phase of the situation, and at the close of his talk, Mr. Pani indicated that the Mexican Government was in entire agreement with the views of the United States.

Mr. Tugwell and Mr. Feis spoke upon the general question of the revival of trade and in general with regard to the views of the American Government concerning monetary problems, price levels, currency and the international exchange of commodities.

The Mexican Delegates spoke briefly of the adverse effect which the last American Tariff Act had had on Mexican exports to the United States. They referred in addition, to difficulties which had been experienced through action of the Department of Agriculture in placing quarantine restrictions on certain Mexican products, in some instances, in their opinion, not justified by the facts, and really intended to restrict the import of the Mexican products.

Mr. Tugwell said that he would appreciate a memorandum from the Mexican Delegation giving specific instances of such use of the quarantine regulations. Specific mention was made of the Mexican fresh vegetable industry which must find a market in the United States, and of heavy Mexican Panuco oil, which has a market in New England where it can be delivered cheaper than any oil produced in the United States. The Mexicans stated that this oil does not compete with any American produced oil except some in Texas.

[Page 549]

There was an expression of general views on both sides in regard to tariff and monetary questions, these views coinciding. The meeting adjourned at 5 p.m.