812.659/95
The Ambassador in Mexico (Messersmith) to the Secretary of
State
[Extracts]
No. 12148
México, D. F., August 14, 1943.
[Received August
19.]
Sir: In continuation of the Ambassador’s
despatch No. 11442 of July 13, 1943,61 concerning the above subject, and with particular
reference to the Department’s telegram No. 1259 of August 5, 2
p.m.,61 informing
the Embassy that Mr. Morrison G. Tucker, Assistant to the Alien Property
Custodian, was due to arrive in Mexico City on August 8, I have the
honor to inform the Department that immediately upon the arrival of Mr.
Tucker the whole subject was thoroughly gone over with him, and the
memorandum which he brought with him from Washington was given careful
consideration by the Ambassador and the Counselor of Embassy for
Economic Affairs. In these discussions, it was found that some of the
features of this
[Page 519]
memorandum
would surely be unacceptable to the Mexican Government, and it was
accordingly decided to prepare a memorandum with certain changes which
could be left with the Minister of Foreign Relations and which, it was
felt, would be acceptable in the main to both governments and, also,
practicable in operation.
A copy of the memorandum as prepared and as submitted to the Minister of
Foreign Relations is attached hereto.…
. . . . . . . . . . . . . .
Respectfully yours,
For the Ambassador
Thomas H.
Lockett
Counselor of Embassy
for Economic Affairs
[Enclosure]
Memorandum by the American Ambassador in
Mexico (Messersmith) to the
Mexican Minister for Foreign Affairs (Padilla)
President Roosevelt, in his letter of June 24, 1943, to President
Avila Camacho, expressed his desire to extend all possible
assistance to the Mexican Government in its program of utilizing
certain former German companies for the further development within
Mexico of the chemical, pharmaceutical, dye and allied industries.
President Roosevelt’s letter also expressed his willingness to have
placed at the disposition of the Mexican Government the facilities
of certain companies under the control of Mr. Leo T. Crowley, Alien
Property Custodian of the United States, with a view of aiding the
Mexican Government in its program and to facilitating the training
of Mexican technicians and, also, to increasing the supplies of
products necessary to the Mexican economy.
In acknowledging President Roosevelt’s letter, President Avila
Camacho stated62 that he welcomed any
contribution which would result in a collaboration of mutual benefit
and that Mr. Crowley, or, one of his associates, would be received
informally in Mexico to discuss more fully any suggestions which Mr.
Crowley might make. In accordance with this exchange of
communications, Mr. Crowley has designated Mr. Morrison G. Tucker to
come to Mexico as his representative.
In Embassy Note number 1438 of July 3, 1943,63 submitting President
Roosevelt’s communication, the Ambassador of the United States
outlined a possible approach to the problem of the Mexican
Government as suggested by the Alien Property Custodian. Since the
transmission of this suggestion, the Alien Property Custodian and
other
[Page 520]
Agencies of our
Government have given further and careful consideration to all
possible measures of assistance and cooperation which would be in
line with the traditional policies of the Mexican Government and
which would accomplish the ends which the Mexican Government has in
mind with respect to its domestic chemical and pharmaceutical
industries.
Bearing in mind the best interests of the two Governments, the Alien
Property Custodian and other Agencies of the United States
Government believe that maximum benefits may be obtained for Mexico
under a plan such as herein suggested, which would draw upon the
technical and supply resources not only of the chemical concerns
controlled by the Custodian, but also of other private United States
enterprises. Accordingly, the following plan is submitted for the
consideration of the Mexican Government as a basis for further
discussion. As will be readily discerned, the plan is not
complicated, but is essentially simple. It leaves the decision to
the Mexican Government or an Agency thereof as to what services it
may desire from companies under the jurisdiction of the Custodian or
from other private companies whose facilities may be beneficial to
the success of the Mexican program.
The plan proposed is as follows:
- 1.
- —It is suggested that the Mexican Government organize a
Company for the purpose of holding the former German equity
and credit interests in certain vested concerns engaged in
the pharmaceutical and chemical field. The holding of the
stock and other interests in these vested companies would
give the Mexican Holding Company full control while leaving
each individual vested concern separate as to its assets and
operating management, if so desired. By maintaining each
vested concern as a separate entity, instead of combining
the assets of all vested concerns into a whole, individual
United States companies could make separate contracts with
individual vested enterprises. It will be noted in Item 3
that the plan herein suggested provides for separate
contracts or agreements between related Mexican and United
States companies or groups of companies. It is suggested
that the directorate of the Mexican Holding Company be small
and be made responsible to the President of the Republic or
to the Junta Intersecretarial.
- 2.
- —It is further suggested that a Joint Commission be
appointed to be composed of five members. Three members of
this Commission should be chosen from the directorate of the
Mexican Holding Company, the president of the Mexican
Holding Company serving as chairman of the Joint Commission.
The two United States members of the Commission should be
named by the Alien Property Custodian. This Joint Commission
would act in a liaison and advisory capacity to the Mexican
Holding Company and to the Alien Property Custodian. It
would advise as to which companies, both Mexican and United
States, should be included in any agreements or contracts
and, also, as to what provisions and terms the contracts and
agreements should contain.
- 3.
- —The Alien Property Custodian controls a number of
chemical and pharmaceutical concerns which manufacture many
of the products which have been distributed in Mexico by
concerns now vested by the Mexican Government. Such concerns
under the control of the Custodian would be in a position to
make separate and favorable contracts or agreements with
corresponding concerns vested by the Mexican Government.
These separate contracts or agreements in some instances
might only provide that the United States company will
supply the Mexican company with products which it requires
for domestic distribution and sale. In the case of another
Mexican company, the contract might require not only the
supplying of United States products, but, also, technical
assistance. Still another intervened company might not only
require a source of supply and technical aid, but, also
managerial assistance. Furthermore, there is a group of
vested companies whose primary function is to distribute
products throughout the Republic of Mexico and this group
might need the experience and assistance of experts from
large United States distributing organizations. The main
point is that the Mexican Holding Company would choose the
type of assistance which each individual vested company or
group of companies might require. The request for this
assistance would be transmitted to the Alien Property
Custodian through the Joint Commission, and the Alien
Property Custodian would recommend the company or companies
under his jurisdiction best fitted to give the assistance
required by the Mexican Holding Company. Should the Alien
Property Custodian find that no company under his
jurisdiction was adequately equipped to perform the services
requested by the Mexican Holding Company, then, he would
solicit the cooperation of other independent United States
companies whose experience, skill and organization would
most efficiently meet the requirements. Thus, the Alien
Property Custodian would plan to draw not only upon the
resources and skill of companies under his jurisdiction,
out, also, upon United States industry in general. It is
envisioned that the contracts or agreements to be made with
the vested Mexican companies would not have the Alien
Property Custodian as a party thereto, but, the individual
companies under his jurisdiction or other private companies
desiring to participate.
- 4.
- —It is important to point out that the Alien Property
Custodian, Mr. Leo T. Crowley, is also the Director of the
Office of Economic Warfare.64 This
latter Agency is the licensing authority for exports from
the United States and, therefore, Mr. Crowley is in a
favorable position to facilitate the necessary supply
arrangements within the limits imposed by the joint war
effort of our two Republics.
- 5.
- —By means of the Joint Commission the Mexican Holding
Company could make known to the Alien Property Custodian its
desire for the establishment or creation of new or
additional facilities essential to the healthy development
and expansion of the pharmaceutical and chemical industries
in Mexico. The Alien Property Custodian would use his best
efforts to assist the Mexican Holding Company in these
respects.
- 6.
- —With reference to the former German trademarks, it is
suggested that they gradually be retired from active use by
the vested companies and that new trademarks be instituted.
During the period while the new trademarks are being
established in the market, they would be used in conjunction
with the old German trademarks, the latter being withdrawn
as the new trademarks become known. Other aspects of the
trademark question could be considered by the Joint
Commission.
The plan suggested above has four primary purposes. First, it affords
the Mexican pharmaceutical, chemical, dye and allied industries all
possible assistance from United States industry. Second, the plan
leaves to the Mexican Government the determination of the type and
degree of assistance which each of the vested companies may require.
Third, the plan provides that all commercial and business relations
shall be between private United States concerns and the Mexican
Holding Company or Mexican vested enterprises. And fourth, unless
the Mexican Government requests otherwise, the administration and
management of the vested companies will remain entirely in Mexican
hands. The purpose of the plan is to endeavor to make available to
the Mexican Government sources of supply, technical experience and
other forms of assistance which the Mexican Government may desire in
relation to the development and coordination of vested companies in
the field of pharmaceuticals, chemicals, dyes, and allied
products.
