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

812.659/110

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

No. 14002

México, D. F., November 9, 1943.
[Received November 13.]

Sir: With reference to the Embassy’s despatch No. 13328 of October 4, 1943, and the Department’s strictly confidential telegram No. 1735 of October 15, 1943, 11 p.m.,⁷⁸ concerning the desirability of revising paragraph 3 of the Embassy’s memorandum of August 10, 1943, containing the proposal of the Alien Property Custodian to assist the Mexican Government in its plans to establish a chemical industry in Mexico, I have the honor to inform the Department that the Embassy submitted a revised memorandum to the Mexican Government which bore the date of August 10, 1943, and substituted for the original text of paragraph 3 the revised text of that paragraph as authorized by the Department’s telegram under reference.

The Embassy has now received from the Foreign Office an acceptance of the Embassy’s revised memorandum of August 10, 1943. The communication from the Foreign Office is dated August 27, 1943, and is in all respects similar to the original memorandum of the Foreign Office bearing that date. The only change is in paragraph 2, which has been modified to conform with the changes made in paragraph 3 of our memorandum of August 10, 1943. In other words, a new exchange of memoranda has been effected in which the text of paragraph 3 of our memorandum of August 10, 1943, has been modified in accordance with the Department’s wishes, and the memorandum from the Foreign Office has accepted the modification in a revised memorandum. This last exchange of memoranda is, therefore, in place of the original exchange of memoranda and is to constitute the official record.

The only exception taken in the memorandum from the Foreign Office to the revised text of paragraph 3 of our memorandum relates to that part of our paragraph 3 which reads as follows: “The request for this assistance would be transmitted to the Alien Property Custodian through the joint commission …”. The memorandum from the Foreign Office states that requests for assistance will be transmitted to the Alien Property Custodian through the Special Commissioner instead of through the joint commission, which is mentioned in paragraph 3 of our memorandum. The Embassy perceives no objection to this change suggested by the Foreign Office, and it will await approval of the Department before making an acknowledgment and accepting the terms of the communication.

There are transmitted herewith copies of the memorandum of August 10, 1943, with the revised paragraph 3 as submitted, and copies of the memorandum received from the Foreign Office with revised paragraph 2.⁷⁹

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)

[Extract]

. . . . . . . . . . . . . .

3.–Acting as an intermediary, the Alien Property Custodian is in a favorable position to use his good offices to the end of procuring assistance for the Mexican Holding Company from either the companies under his control or private American companies, whichever may be best fitted to render the type of assistance required. After the Mexican Holding Company has chosen the United States firms which it deems best fitted to perform the services required, then contracts between the companies under the jurisdiction of the Holding Company and the individual United States companies could be entered into on a voluntary commercial basis. 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 arid 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, after careful consideration, the company or companies best fitted to give the assistance required by the Mexican Holding Company. In this manner, the Alien Property Custodian would draw upon not only the resources and skill of companies under his jurisdiction, but also upon the United States industry in general. All contracts or agreements to be made with the vested Mexican companies would be made directly with the American firms without the participation of the Alien Property Custodian as a party thereto.

. . . . . . . . . . . . . .

México, August 10, 1943.

78. Neither printed.
79. Latter not printed.