812.50/508
Memorandum of Conversation, by the Ambassador to Mexico (Messersmith), Temporarily in Washington
| Participants: | Department of State: Ambassador Messersmith, Messrs. McGurk, Effland, and Bechhoefer |
| FEA: Messrs. Paul and Hansen | |
| WPB: Messrs. Locke, Whitney, and Jacobsen | |
| CIAA: Messrs. McKenna and Dudley Bonsal |
The meeting was called at the request of Ambassador Messersmith for the purpose of presenting certain background information on the Joint Mexican-United States Commission for Economic Cooperation. The Ambassador set forth the background of the arrangements for the meeting between Presidents Roosevelt and Avila Camacho in Monterrey in April, 1943,37 and said that during that meeting the two Presidents had agreed upon the establishment of the above-mentioned Commission. He said that the Presidents fully discussed the importance of the relationships between Mexico and the United States for the present and in the post-war period in the political and economic field. The two Presidents were convinced and so expressed themselves of the necessity for the closest collaboration in the political and economic field by both countries.
The President of Mexico stated in these conversations that the program of the Mexican Government was, first, development of her industrial economy; second, development of her agriculture; third, development of her communications systems; and fourth, improvement in health, sanitation and education, as these were a fundamental basis for any improvement in the industrial and economic situation.
The President of Mexico further emphasized the desire of Mexico for the present and in the post-war period to collaborate in the closest possible way with the United States and to coordinate her industry and agriculture with that of the United States so far as this is possible.
The Ambassador said that the Commission was the initiative of the two Presidents in order that problems in the industrial and agricultural development of the two countries could be studied and the Ambassador pointed out how important it was that so far as the economies [Page 1199] of the two countries were concerned problems of this kind could be mutually discussed by the two countries through this Commission rather than by unilateral action.
The first Commission, which was one of inquiry, completed its work in several months and at the close of its work a well prepared and sound report was submitted to both Governments and accepted by them and on the basis of this report it was decided by both Governments, with the approval of the two Presidents, to organize the now existing Joint Mexican-United States Commission for Economic Cooperation. It was the understanding of the two Presidents in their conversations at Monterrey and continuously that when any sound industrial projects were approved for development in Mexico by the Mexican and United States Sections of the Joint Economic Commission that the materials for such projects should fall without the regular allocations for Mexico for her minimum needs. The Ambassador pointed out that such a decision on the part of the two Presidents was only natural for without such a decision as a basic principle no progress could be made in the industrialization of Mexico during the period of the war or during such period after the war when controls of materials may still exist. It was therefore essential that it be accepted as a basic principle by all agencies of our Government concerned that such allocations of materials for approved projects by the Commission should fall without the regular allocations for the minimum needs of the Mexican economy.
The Ambassador pointed out that soon after the Commission started functioning an instruction was issued to the Embassy in Mexico indicating that in the sphere of the agencies concerned of our Government all materials for such approved projects by the Commission would have to fall within the allocations of materials for the minimum needs of Mexico. The Ambassador pointed out that although he had not formally communicated this to the Mexican Government the information had reached the Mexican Government through sources in Washington and it had caused consternation in Mexico as it was obvious that under such circumstances the Commission’s work would be almost entirely impaired. The Ambassador said that the President of Mexico had spoken to him about this and indicated that the whole program of economic collaboration between the two countries, including the work of the Commission, would be impaired if such principle were carried through and if the original decision of the two Presidents above stated was not adhered to. The Ambassador stated that he had therefore made this trip to Washington38 particularly [Page 1200] for the purpose of discussing this matter with the appropriate officials of our Government.
The Ambassador stated that after he had discussed the matter fully with Secretary Hull the Secretary was in agreement that the original thought of the two Presidents in setting up the Commission must be carried through and he gave his approval to the Ambassador discussing this matter with the President. The Ambassador said he had talked the matter over with President Roosevelt in the last days, who had indicated that it was correct that it was the understanding of the two Presidents in setting up the Commission that materials for approved projects by the Commission should be allocated outside of the regular allocations for the needs of the minimum economy of Mexico.
The President indicated the importance which he laid to the work of this Commission as a part of our relationships with Mexico and the necessity for the Commission being able to function adequately and for other agencies of our Government collaborating with it in its important task.
There was then held a meeting in the office of Secretary Hull at which were present Mr. Donald Nelson, the head of the War Production Board, Mr. Leo Crowley, the head of the Foreign Economic Administration, Mr. Stettinius, the Under Secretary, and Mr. Messersmith. The Ambassador said that during that meeting the Secretary had briefly set forth the objectives of the Commission and then had asked him to give the background in full which he had done.
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Mr. Donald Nelson and Mr. Crowley were fully in accord with all that was said and indicated to Mr. Hull that the ideas expressed followed their own line of thought and that in their opinion the work of the Commission must be facilitated. They said that it would be impossible to consider that all allocations for materials for approved projects by the Commission must fall within the regular allocations of Mexico for her minimum needs. They said that so far as the exigencies of the war permitted and as rapidly as possible projects approved by the Commission must get the most favorable treatment by the War Production Board and the Foreign Economic Administration. Both Mr. Nelson and Mr. Crowley expressed themselves fully understanding of the importance of Mexico to us for the present and for the future and the necessity of considering her industrial and agricultural development in the most favorable manner possible and their stimulating and facilitating it. They said that their respective agencies within the means in their power would lend their full collaboration to this program.
As a result of this meeting Mr. Nelson named three people in the War Production Board to give attention to this matter and Mr. Crowley [Page 1201] did the same for the Foreign Economic Administration. The meeting now held and which is the subject of this memorandum was for the purpose of giving further background. The Ambassador said that Mr. Dudley Bonsal had been named by the American Section of the Commission to work for it in Washington in conjunction with the Department of State and with other agencies of our Government, including the War Production Board and the Foreign Economic Administration. Mr. Bonsal’s duty would be to aid here in Washington as far as possible the Mexican Section in bringing about an implementation of its recommendations.
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- See press release issued by the Department of State, April 29, 1943, Foreign Relations, 1943, vol. vi, p. 417.↩
- The Ambassador had arrived in Washington on January 13, and he returned to Mexico City on February 10.↩