812.5018/69: Telegram
The Ambassador in Mexico (Messersmith) to the Secretary of State
[Received November 9—12:28 a.m.]
1086. Reference corn situation in Mexico and some arrangement apparently proposed by Commodity Credit for matching Mexico [Page 443] exports of oilseed meals against exports of corn from the U. S. Reference is also made to Mexican Government embargo on exports of oilseed meals effective November 1. Reference is also made to telephone conversation Carrigan to Mallory concerning lifting embargo on 61 cars oilseed meals en route to border.
This Embassy would appreciate further information as to nature of the barter or matching arrangement as many points are confusing.
I spoke to the Minister of Agriculture60 at some length on Friday November 5, I spoke to him briefly on November 7 and the Agricultural Attaché had a further conference with him on November 8. I pointed out the desirability of lifting the embargo and he promised to take up this matter with the President. This morning he informed the Agricultural Attaché that the subject had been taken up and that the embargo had been placed in effect by Economic [sic] in the belief that it was so desired by the American Government on information furnished by the Mexican Embassy in Washington and also in the belief that it was a type of barter arrangement such that the oilseed meals would be purchased by an agency of the American Government. The Minister asked if the American Government would accept as evidence of its cooperation quantities of oilseed meals shipped to the U. S. through the usual channels of trade. The Agricultural Attaché informed the Minister that he believed such an arrangement would be satisfactory but that he would make appropriate inquiries. The Minister stated he wished a reply in writing. This Embassy is fully convinced that only by opening up the usual channels of trade can oilseed meals be moved quickly and advantageously, otherwise the whole matter will become hopelessly involved within the administration machinery of the Mexican Government. We estimate that between 40,000 and 50,000 tons have already been sold to American buyers. This Embassy would appreciate immediate telegraphic reply concerning this question.
In a speech yesterday the Minister of Agriculture announced the size of the new corn crop at 1,775,000 metric tons involving a probable deficit of 475,000 tons. He indicated that 18,000 tons are authorized for purchase abroad and hoped that new Government measures would stimulate production enough next spring to cover the balance of deficit.
Today and confidentially the Minister of Agriculture informed the Agricultural Attaché that 20,000 to 25,000 tons comprise immediate needs with possibility of additional 75,000 to 100,000 tons being required next spring. The Minister stated that the problem was equally one of assurance in being able to get physical delivery and transportation of corn as much as corn itself. The Department is requested to inform this Embassy whether such assurance can be furnished the [Page 444] Mexican Government even though the corn may not be required. It is believed such assurance will go far towards reducing the probable actual amount of corn required by Mexico.
- Marte Gómez.↩