812.24/3707: Airgram
The Secretary of State to the Ambassador in Mexico ( Messersmith )
A–3091. Reference is made to the Embassy’s despatch no. 14306 of November 19 and airgram A–2823 of December 9, 1943, concerning the rollback of decentralization. The FEA is sending through the Department an airgram for Cunningham,15 with which the Department does not fully agree.
[Page 262]However, the Department does consider it of vital importance to our whole relationship with Mexico in the exports field that the Mexican Government accept the rollback as of January 1. The rollback will tremendously simplify the procedure with regard to those projects which are approved by the Mexican-United States Commission for Economic Cooperation and will eliminate many of the procedural difficulties which have been delaying projects such as Altos Hornos, Cia. Fundidora de Fierro y Acero de Monterrey, and Puente Grande, although independent measures are being taken to secure approval of the projects mentioned despite decentralization. Furthermore, the rollback is designed to free exports to Mexico; on Class B products, decentralization has operated to choke off all trade with Mexico because of the extended delays of the Comité Coordinador in processing Export Recommendations. The request of Primo Villa Michel to delay the institution of the rollback for an additional quarter is regarded in Washington as a play for time in which to strengthen and consolidate control of imports into Mexico on a more or less permanent basis, whereas decentralization was proposed as a temporary system of mutual control to meet emergency conditions. This is the interpretation placed on the complete reversal of attitude expressed in the two communications under reference.
The offer of FEA to give preference during the first quarter to export license applications accompanied by Export Recommendations will, it is believed, adequately fulfill any commitments which the Mexican Government may have made in this regard.
You are requested to review this matter and give the Department your comments urgently.17