811.20 Defense (M)/1544: Telegram
The Secretary of State to the Ambassador in Mexico (Daniels)
218. Reference is made to the Embassy’s despatch no. 12463 of March 26, 1941. The Federal Loan Agency has now indicated its willingness to enter into an agreement with the Mexican Government on the following terms:
- 1.
- The Mexican Government would agree to establish a system of export control. Such export control would prohibit the exportation to countries other than the United States and the other American republics, which have established parallel systems of export control, of the following materials: antimony, arsenic, bismuth, cadmium, cobalt, copper, fluorspar, graphite, henequen, lead, manganese, mercury, mica, molybdenum, tin, tungsten, vanadium, zinc.
- 2.
- The Federal Loan Agency, through its subsidiaries, will agree to purchase all the Mexican supplies of these materials available for export which may not be absorbed by the American market through ordinary commercial channels. The amounts of the exportable surplus will be specified in the agreement at a figure slightly higher than the present exportable surplus.
- 3.
- The price to be paid for each of the materials would be negotiated with the Mexican Government.
- 4.
- It is contemplated that the contract would be for a term of 2 years. In addition, it is suggested that provision be made for the extension of the period at the option of the Federal Loan Agency.
In order to proceed as rapidly as possible with negotiations, the Federal Loan Agency is prepared to send immediately a representative to Mexico City with full power to negotiate an agreement covering the above points with the Mexican Government.
Please inform the Department by telegraph whether the Mexican Government is willing to have a representative of the Federal Loan Agency proceed at once to Mexico City.