740.00112A European War, 1939/23510
The Secretary of State to the Chargé in Mexico (Bursley)
The Secretary of State refers to the Embassy’s despatch no. 6396 of January 6, 1943,76 relating to the diversion of American exports to undesirable persons in Mexico by improperly using the name of satisfactory consignees.
The Department understands that the Board of Economic Warfare is now working with the Embassy to establish a plan for the decentralized control of exports from the United States to Mexico. It would seem that the specific problem raised by the Embassy’s despatch under reference, namely diversions effected at the border without the knowledge of the named consignee, might to a great extent be solved when this plan, the details of which are, of course, known to the Embassy, goes into effect. This solution will, however, depend on whether customs brokers, many of whom, it is noted, have head offices in Mexico City, will be able to secure the necessary import permit under the plan for the ultimate consignee. If such customs brokers act as importers on behalf of the ultimate consignees, it would appear that the proposed plan will solve this problem only in so far as the necessity of filing a further untrue or forged statement (to the effect that the customs brokers are acting as agent for a satisfactory consignee) with Mexican authorities acts as a deterrent. The Embassy’s views on the extent to which the proposed decentralized control program will solve the problem are requested.
Consideration is also being given by the Board of Economic Warfare to a requirement that all shipments to Mexico be made on a through bill of lading. It is suggested that such a procedure be coupled with a requirement that diversion by the named consignee can only be effected with the approval of the appropriate Mexican authority. The latter control would require the cooperation of the Mexican Government, but this might be gained since the provision against non-approved diversions would implement the control by the Mexican Government of the distribution of imported merchandise. [Page 238] It is suggested that officers of the Embassy discuss this procedure with Mr. Cunningham and advise the Department of the Embassy’s views as to its practicability and desirability.
The Department recognizes that it may be some time before the decentralized export control plan goes into operation, and requests the Embassy’s opinion as to whether the extent of the diversions now being effected at the border is sufficiently great to require immediate action. The Department would appreciate receiving any figures the Embassy may be able to obtain showing the amount and general types of goods now believed to be delivered to unsatisfactory consignees in the manner outlined in the despatch under reference.
The solution suggested in the penultimate paragraph of the despatch under reference would appear to be a satisfactory solution to the problem, but it is questioned whether any such program should be initiated at this time unless there is a substantial volume of goods now being delivered to unsatisfactory persons, since it would entail a change in the usual method of shipping merchandise to Mexico and the proposed export control program should solve the problem.
The suggestion in the ultimate paragraph of the despatch under reference would seem helpful in discovering what customs brokers are guilty of the undesirable practice and, if the same can be adopted without undue difficulty, the Embassy is authorized to take the necessary action to put such a plan into effect.
- Not printed.↩