812.5018/74
The Mexican Embassy to the Department of State
In confirmation of the conversations which its representatives have been holding with those of the Department of State, the Embassy of [Page 445] Mexico desires to refer to arrangements initiated by its Government for the purchase of a tonnage of corn which would permit the solution of the scarcity which has resulted from the very bad climatic conditions of the year which is ending. In this connection, the Department will recall that the United States authorities directed these arrangements toward the idea of an exchange of corn for oil seed meals that United States farmers in the Middle West and in the West might use in place of the corn sold to Mexico and which, in the United States, is fundamentally used for livestock feed purposes.
The Government of Mexico has been particularly well disposed toward establishing an agricultural policy resulting in the production of the two countries—Mexico and the United States—being complementary. With this in view, Mexico has been exporting considerable tonnages of oil seed meals and the exportations this year will increase even more because of a production considerably over that of last year.
The proposal that meals should be delivered directly in exchange for corn appears to present this matter in the disagreeable light of a bartering of merchandise. Mexico, in fact, is sending to the United States large quantities of agricultural products and, through a very intense campaign for increased sowing, is preparing to meet her deficit of corn without having to call upon the help of United States production.
Regarding the problem of oil seed meals, Mexico has endeavored to overcome the shortage by permitting a liberal increase in prices. To wish to obtain from Mexico oil seed meals at the United States ceiling prices would complicate the situation of Mexico and that of the United States, for it would diminish interest in production in Mexico without the United States obtaining a result other than that of not being able to obtain those meals now being acquired from Mexico.
There are United States purchasers who are endeavoring to acquire Mexican meals at reasonable prices. Mexico cannot begin requiring sales at low prices without upsetting her own problem of oil seed sowing.
The above situation was fully gone into last Friday by the Secretary of Agriculture and the Ambassador of the United States, Mr. Messersmith. Ambassador Messersmith, who is adequately informed regarding the agricultural efforts of Mexico, not only shared the views of Engineer Gómez, but even showed himself disconcerted by the embargo decreed by the Ministry of National Economy and considered this embargo susceptible of hindering the efforts that he has been making to obtain corn for Mexico.
[Page 446]Ambassador Messersmith requested Engineer Gómez to use his influence to the end that the Ministry of National Economy should lift the embargo, and strongly recommended that commercial operations between Mexico and the United States continue to be carried out through the accustomed commercial channels.
In the opinion of the Embassy, this request involves the idea that the Government of the United States of America shall take into account any exportation of oil seed meals from Mexico to the United States through already established commercial channels as a contribution toward easing the United States problem of cattle feed. Furthermore, the Embassy is sure that, upon returning to a normal system insofar as these exports are concerned, the Government of the United States of America will continue its efforts to cooperate with the Government of Mexico in solving those problems brought about by the present scarcity of corn through direct deliveries of this cereal to the Government of Mexico.
Since confirmation by the Department of State of the ideas expressed in the previous paragraph would speed up those steps which are necessary for the lifting of the embargo under reference, the Embassy has to request that the Department be so kind as to furnish its reply to this Memorandum within the shortest period possible.