811.504 Mexico/127
The Chief of the Division of the American Republics (Bonsal) to the Ambassador in Mexico (Messersmith)
My Dear Mr. Ambassador: I acknowledge the receipt of your letter and despatch of September 29, 1943,59 regarding the increased quotas for Mexican workers which have been established as a result of your conversations with President Avila Camacho. These quotas and especially the refillable basis on which they now stand represent real progress in the manpower situation.
The War Food Administration has been informed of the new figure on the basis of your telegram no. 962 of September 30, 1943, and Colonel Bruton has requested that sincere appreciation be passed along to you. He stated that the Administration has currently under study the question of the number and distribution of agricultural workers which will be needed in the next few months. He indicated that present estimates are that only about 20,000 workers will be utilized in agriculture throughout the winter, and the studies being made are to provide for the others now here and those who may come in the next few weeks. The War Food Administration and the War Manpower Commission hope to hit upon an arrangement satisfactory to the Mexican Government to provide work in other industries during the winter for those workers not needed in agriculture. It has been stressed to them that any plans made must be cleared with the Mexican Government.
The railroad problem, however, from all indications, is serious. From the Embassy’s despatch no. 12,987 of September 13, 1943,60 which reports the discussions held in Mexico City between representatives of the two Governments, I note that the basic point of difference is the question of salaries paid to Mexican workers by the railroads. Apparently early in the conversations the Mexicans made the point that these salaries were discriminatory because higher salaries were being paid in certain regions to other workers who were doing the same type of work but as employees of contracting companies. The fifth and last paragraphs of the memorandum of the last meeting with the Mexicans, enclosure two of the despatch under reference, indicate that the Mexicans sustained their demand for wage increases which were not in the power of the representatives of this Government to give.
In this regard I note that Mr. Motley61 pointed out to the Mexicans that this Government did not consider the wages discriminatory since [Page 572] they were the same as those paid to the 105,000 track workers who do this particular job with the Mexicans. He also stressed the fact that these wage rates were frozen under the President’s hold the line order, and that the War Manpower Commission was therefore unable to meet the Mexican demands for increased wages.
Mr. Motley also told them that a proposal to increase wages for track workers by eight cents an hour had been submitted to the President. It was probably the hope of the War Manpower Commission that this increase, involving back pay of approximately $100.00 for the majority of Mexican railroad workers, would help in securing the withdrawal of Mexican objections to wages at present levels. However, Office of Defense Transportation representatives have now informed the Department that Mr. Vinson62 has stopped this proposal. It is possible that the portion of the proposal referring to track workers will receive further consideration, but it is now too late for any psychological benefit to be derived therefrom.
The fact must therefore be faced by the interested agencies of this Government, who continue to press the Department to secure more workers from Mexico, that a way must be found to meet the Mexican demands. To bring this matter before these agencies a letter is being addressed to Governor McNutt, a copy of which is enclosed.63 You will note that he is being informed of your suggestion that representatives of the Commission go to Mexico to continue discussion of the points at issue. It is then stated, however, that it is the Department’s opinion that a continuation of the discussions will not be productive of further workers unless such representatives are empowered to meet the Mexican wage demands at least to the extent of placing these railroad workers on a wage par with the Mexican agricultural workers in California who receive a minimum of about sixty cents.
With cordial regards,
Sincerely yours,