612.003/747: Telegram
The Chargé in Mexico (Boal) to the Secretary of State
[Received May 21—1:50 a.m.]
213. My 209, May 19, 7 p.m., and Department’s 100, May 20, 1 p.m. Lockett and I saw Suarez this afternoon and discussed the new tariff with him in the sense your telegram. The Minister took the position that there had been no increases over the December 31 rates, but upon our citing figures, called in the chief of his Tariff Department, who was obliged to admit that the new tariff in many instances failed to return to the December 31 levels, and in other instances, that new increases had been made in rates not previously increased. Suarez then said that he had made a definite commitment to our Government that there would be no increases in rates and that rates would be returned in all cases to the December 31 levels. In our presence he instructed the chief of the Tariff Department to prepare substitute schedules for the Congress reducing all rates to the December 31 levels (in a few cases reducing rates below these levels) and canceling all increases.
He made an exception in the matter of automobile rates stating that these rates had been maintained or increased at the request of American automobile manufacturers having assembly plants here. He remarked that General Motors and Ford have assembly plants here and Chrysler has approached him with a view to installing an assembly plant. He asked whether in spite of this situation on the part of these automobile manufacturers our Government felt that automobile rates should be reduced to the December 31 level. He [Page 782] pointed out, of course, that he was particularly anxious not to do so as the protection provided by the high rates meant employment in assembly work for a considerable number of Mexican laborers. I said that I would prefer to defer reply on this point and would get in touch with him later. I would appreciate having the Department’s views.
In view of the assurances given me by the Minister today Lockett requested that all that part of telegram No. 20954 preceding the words “please inform Commerce” be disregarded by the Department of Commerce and that his airmail communications transmitting particulars on these figures to Commerce via the State Department be held in the Department so that he may substitute the rewritten tariff rates for them.
The Minister made it clear that while the Congress did not usually alter his tariff bills he could do nothing more, of course, than assure us he would make the changes in the proposals to the Congress.