740.00112A European War 1939/25971a
The Assistant Secretary of State (Acheson) to the Chargé in Mexico (Bursley)
My Dear Mr. Bursley: A few days ago several officers of the Department and I had a lengthy discussion with Ambassador Messersmith concerning the progress being made by the Mexican Government in cleaning-up Proclaimed List firms in Mexico. We indicated to the Ambassador that we were disturbed at the apparent slowness on the part of the Mexican Government to take effective action and that we desired to know whether there was anything which the Department could do which might help the Mexicans to speed up their program. The Ambassador detailed to us the problems which the Mexicans had to face in carrying out such a program and the difficulties which the Embassy had encountered in attempting to obtain speedy action.
During the course of the conversation the Ambassador was asked whether there was a lack of desirable financial resources in Mexico to take over Proclaimed List firms which were essential to the Mexican economy and, if so, whether an offer of financial assistance from this Government might help to remedy this difficulty. We indicated to the Ambassador that this Government was prepared in appropriate cases to offer such assistance through the facilities of the Export-Import Bank in connection with the replacement programs instituted by the other American republics where the firms involved were essential to the local economies. The Ambassador replied that there was a lack of desirable financial resources to take over Proclaimed List firms essential to the Mexican economy and that this was a factor which hampered the Mexicans in pushing their program to a successful conclusion. He stated that he thought that an offer of financial assistance from us might be very helpful to the Embassy staff in its negotiations with the Mexican Government.
We told the Ambassador that a circular instruction on the role of United States financial assistance in programs for the cleaning-up of Proclaimed List firms essential to the economies of the other American republics was in the process of preparation and would be forwarded to the missions very shortly.20 That instruction would give the Embassy the necessary information upon which to base discussions with the Mexican officials. The Ambassador indicated, however, that it might be very helpful if you and Mr. Lockett knew of the possibility of United States financial assistance as soon as possible. He believed that this would give you and Mr. Lockett an opportunity to think about the matter before the circular instruction arrived and possibly even discuss it in a general way and informally with the appropriate [Page 485] Mexican officials. In the meantime, the circular instruction of December 17, 194221 (page 2) may also be of assistance.
We in the Department are most anxious to do everything possible to assist the Mexicans in carrying out an effective program of economic warfare. If United States financial assistance in connection with the taking over of Proclaimed List firms will be of help in this connection, we are prepared to do everything possible to see that such assistance is made available. I realize that it will be difficult for you to explore the possibilities involved in the availability of United States financial assistance without first having a blueprint of the manner in which such assistance would be made available. However, the information in this letter should give you something to start on and, as a matter of fact, it would be advisable for you not to go into details with the Mexicans or make any final commitment to them until we have first brought the possibility of such assistance to their attention and obtained their views.
After you have had an opportunity to consider the question raised by this letter, I shall be happy to try to give you any further information which you desire.
Sincerely yours,