412.11 (41) Agreement/10

Memorandum by the Chief of the Division of the American Republics (Duggan) to the Under Secretary of State (Welles)

Mr. Welles: The Mexican Ambassador did not come to the meeting in my office this morning. However, Señor Antonio Espinosa de los Monteros83 came in and after stating to him that any discussions of the plan for adjustment of certain Mexican problems at this time must necessarily be without commitment on either side, I outlined to him the plan set forth in the memorandum of September 17.

Señor Monteros appeared on the whole to be very much pleased with these suggestions. However, he raised the following questions for consideration in connection with the exploration of this matter:

The necessity from the Mexican point of view of obtaining, if in any way practicable, an increase in the portion of the oil quota available to Mexico under the reduced taxes provided for by the Venezuelan trade agreement.84
The need for some sort of a marketing agreement whereby Mexican oil could be marketed through some or all of these channels, viz., sales on the American market, sales in foreign countries, and sales to the United States Navy.
The desirability from the point of view of both countries of Export-Import Bank financing of the various imports of equipment for plant expansion and new industries Mexico would need following the adoption of some such plan as that now under consideration.

It was pointed out to Señor Monteros that these points obviously raised certain further problems but that the obstacles in the way of our assisting, at least in some of these matters, were not necessarily insuperable.

Señor Monteros said he would report the conversation to the Mexican Ambassador.

Messrs. Collado85 and Bursley86 were also present and participated in the conversation.

Laurence Duggan
  1. Mexican representative on the Inter-American Financial and Economic Advisory Committee.
  2. Effective December 14, 1940; for text, see Department of State Executive Agreement Series No. 180, or 54 Stat. (pt. 2) 2375.
  3. Emilio G. Collado of the Division of the American Republics.
  4. Herbert S. Bursley, Assistant Chief of the Division of the American Republics.