812.5018/67a: Telegram
The Acting Secretary of State to the Ambassador in Mexico (Messersmith)
1823. Ambassador del Rio has informed the Department that he is completing arrangements for the purchase of 4,000 tons of corn on open market at the ceiling price deliverable after November 1 at Saint Louis, Kansas City, or other markets. It appears, on investigation, that this transaction is in accordance with applicable laws and regulations. A severe shortage continues to exist as far as corn for feed purposes is concerned. It is anticipated that, owing to the growing shortage of feed, it will be necessary to ration restrictively milk and eggs.
Whether Mexico gets corn from Commodity Credit or through commercial channels the amount received will depend primarily upon the willingness of the appropriate agencies of this Government to allow corn to move to Mexico. In turn, that willingness will depend upon the willingness and ability of the Mexican Government to make substitute feeds available for distribution in this country in accordance with the directives of the pertinent agencies of this Government. Dr. del Rio has not yet furnished any concrete information on this point although he yesterday informed the Department that he would have such information on Wednesday or Thursday of this week. In the absence of such concrete information and in view of the statements as to the availability of these substitute feed products contained in your despatch no. 13722 of October 20,56 you will appreciate that no further progress can be made towards the release of Government owned or controlled corn until we have the required information from the Mexican [Page 439] Government. Furthermore, the appropriate agencies of this Government will obviously not be in a position to permit further exports through commercial channels on an unlimited scale in the absence of definite Mexican cooperation.
The reason for specifying delivery of Mexican oil seed cakes or meal at El Paso or points west is that there is a deficiency of protein feed stuffs in the mountain and Pacific areas.
With respect to your inquiry as to whether the Mexicans have obtained corn elsewhere, the Department knows of no arrangements whereby the Mexicans have recently obtained corn other than the above operation and other than the two Government-to-Government operations of which you have been informed.
- Not printed.↩