611.1231/443½
Memorandum of Conversation, by the Assistant Chief of the Division of Commercial Policy and Agreements (Fowler)
Dr. Beteta came in at his request to inquire whether there had been any developments in regard to the petroleum concession. I told him that Mr. Davies30 had this morning informed me that he expected Mr. Ickes31 to return tomorrow and would make it his first order of business to discuss this matter with him. Dr. Beteta seemed pleased at this evidence of activity but took the occasion to elaborate on the difficult position he has been placed in as a result of the long delay.
Dr. Beteta also mentioned the difficulty he would have even though he receives shortly our full proposals in regard to concessions to Mexico in obtaining the approval of his Government of greater concessions on the Mexican side than those already offered. He mentioned in this connection the misunderstanding on the part of the Mexican Embassy here and of various officials in Mexico to the effect that the United States would be content with bindings rather than [Page 513] reductions of Mexican rates of duty. He mentioned particularly the difficulty they would have in giving us any reductions on agricultural products. He indicated, however, that once he receives our offers, he would endeavor to get sympathetic consideration of our requests for concessions from Mexico, intimating that it might be necessary in that connection for him and the remaining members of his delegation to return to Mexico for that purpose.
Before leaving, Dr. Beteta said that he had intended to seek an appointment with Mr. Welles within the next few days to advise him that in view of the pressing need for the services of the remaining members of his trade-agreement delegation in Mexico and the long-continued delay in receiving our proposals in regard to petroleum, he was planning to leave with them for Mexico City in the near future. However, in view of what he had learned, he said that he would not seek an appointment for that purpose. I told him that we would keep him advised of developments and expressed agreement with his view that once our full proposals are made and his Government has had an opportunity to reconsider their offers in the light of them, it should be possible to complete the negotiations in very short time.