Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume VI

740.00112A European War, 1939/16292: Telegram

The Secretary of State to the Ambassador in Mexico (Messersmith)

Washington, January 13, 1943—4 p.m.

72. From Acheson.⁶ The Department, as you are aware, is fully cognizant of and sympathetic with the difficulties which confront the Mexican Government in its program of eliminating Axis influence from the Mexican firms which were placed in category I in your despatch no. 3415 of August 19,1942.⁷ At the same time the Department wishes to take all practicable steps to terminate as soon as possible the present situation which is unsatisfactory both from the point of view of the Mexican Government and hemisphere defense. The appointment of governmental interventors has, in the eyes of the Mexican public, substantially removed the stigma which previously attached to firms included in the Proclaimed List, and to this extent has seriously impaired the effectiveness of the Proclaimed List program.

During the present period following intervention and prior to vesting no adequate local controls have become effective to compensate for this serious impairment of our Proclaimed List controls. In addition, during this period, no names have been or are being added to the Proclaimed List for Mexico although facts have been reported which would ordinarily result in such inclusions. In as much as the procedure which has been agreed upon for the establishing of supplementary local controls by Mexico is being watched with considerable interest as the basis for meeting similar problems in other American republics, the Department believes that it should do everything that it can to assist in a successful conclusion of this program, which has been agreed upon by the Department and the Mexican Government, for adjusting Proclaimed List controls to the economic and defense needs of Mexico.

Undoubtedly both the Policy Council and the Committee of Vigilance and Administration by now have a clear conception of the problems faced by Mexico in executing its agreement last August.⁸ It is realized that these problems may be substantial and it is also believed that this government may be of assistance in meeting some of them. The Department, however, does not have sufficient information regarding the character of the assistance which may be indicated and the time when it may have to be supplied. Accordingly it is believed that your forthcoming visit⁹ will offer a valuable opportunity for the Department and the other interested government agencies, such as BEW,¹⁰ to review the progress which has been made and to explore fully the problems involved.

The Department will be interested in discussing in particular the following topics relating to the execution of the program:

1. The exact nature of any difficulties which may be confronting the Mexican Government in this connection, e.g., whether the Mexicans are faced with any difficulties because of their comparative inexperience in certain industrial enterprises, the dearth of managerial and technical personnel, unavailable local capital, or the lack of trained governmental administrators; whether the government is confronted with any serious problem because of the influence of the undesirable firms in deterring the government in the execution of the program.

2. What progress the Mexicans have made in planning solutions to the problems confronting them? Whether the Mexican authorities have set for themselves any date at which it may be expected that a substantial number of the undesirable firms will have been vested following the elimination of all pro-Axis elements. We shall be particularly interested in being advised as to whether the Policy Committee and the Committee of Vigilance and Administration have formulated any overall program and any concrete plans for specific firms or industries. The Department is, of course, aware of the tentative plan that the American Cyanamid Company assume the management of the chemical, drug and pharmaceutical enterprises which have been intervened. We should be interested to know whether similar proposals have been made in respect of other types of enterprises included in Category I.

3. The extent to which United States private, technical or governmental assistance, such as Export-Import Bank credits, may be required. In this connection it would be helpful to know whether the Mexicans wish offers of assistance at this time and, if so, what form such offers should take. The discussion of this topic will obviously be most fruitful if it can concretely be related to specific enterprises or industries.

4. The manner in which exports from the United States to Mexico may be affected, that is, whether a larger or smaller volume of exports from the United States will be required. Would the prospect of increased supplies to the reorganized enterprises expedite the accomplishment of the program?

5. The effect which it will have on the BEW’s imports program, that is, to what extent materials now exported to this country may be required by Mexico or to what extent Mexico may augment its present exportable surpluses to this country.

6. Whether it envisages the development of new industry. For instance, the American Cyanamid proposal apparently contemplates the development of new chemical industries,

7. The plan that American Cyanamid Company should assume the management of vested drug and pharmaceutical enterprises. In the discussion of this topic we should like to explore the problems referred to in our A–894 of January 7, 7:10 p.m.¹¹

You may wish to have one of your assistants accompany you in order to deal with the detailed problems which will be raised in Washington. [Acheson.]

Hull

6. Dean Acheson, Assistant Secretary of State.

7. Despatch No. 3415 of August 19, not printed. The Ambassador enclosed a memorandum dated August 10, 1942, agreed upon with the Department which he had presented to the Mexican Minister for Foreign Affairs (Padilla). This memorandum explained at length the “Proclaimed List of Certain Blocked Nationals” and had as annexes lists of firms on the Proclaimed List domiciled in Mexico, divided into three categories: The first category contained the names of those persons and companies whose business was essential to Mexican economy; the second category contained those of little economic importance; and the third included the names of Japanese, Italians, and Germans who should remain on the Proclaimed List.

   The memorandum expressed the desire of the Government of the United States to cooperate closely with the Mexican Government in eliminating enemy interests.

   The Ambassador reported that the Mexican Minister for Foreign Affairs had told the Ambassador that he could depend upon the most loyal collaboration of his Ministry and the Mexican Government.

8. Apparently a reference to discussions reported in despatch No. 3415, August 19, 1942, from the Ambassador in Mexico; see footnote 7, p. 476.
9. The Ambassador left Mexico City for the United States on January 15, 1943, and resumed charge of the Embassy on March 1.
10. Board of Economic Warfare.
11. Not printed.