612.116/44
The Secretary of State to the Ambassador in Mexico (Messersmith)
Sir: Reference is made to the Embassy’s despatch no. 17,701 of May 23, 194481 and to other correspondence concerning the Executive Decree published May 12 providing for the control of imports into Mexico, including instruction no. 5745 of May 29, which was forwarded before distribution of despatch no. 17,701 was effected in the Department.
On the basis of the additional information concerning the decree submitted in the despatch, the Department now deems it desirable to authorize the Embassy to proceed to discuss the subject informally with appropriate Mexican officials with a view to encouraging the withdrawal of the measure or to obtaining assurance that the powers provided thereby will not be used to control imports for commercial policy reasons. Your discussions with Mexican officials may be held within your discretion as to appropriate time and circumstances.
You should refer to the comments made on various aspects of this matter, including its relation to the trade agreement, in instruction no. 5745 and, if it is considered by Mexican officials to be a wartime measure, you should emphasize particularly that it is the general policy of this Government to remove wartime trade controls as soon as they are no longer necessary in connection with the war effort, and to simplify those which remain necessary. This Government considers the implementation of this policy important hot only to relieve foreign traders here and abroad from the burden of unnecessary restrictions and formalities but also as a necessary preliminary step looking toward the general relaxation of barriers to trade without which postwar world trade relationships cannot be reestablished on a sound basis. You should also stress the fact that wartime trade control measures of this Government are not used to protect domestic industries nor, in the case of any given commodity, to discriminate between countries of origin.
With reference to the statement of the Minister of Finance and Public Credit that the decree provides a mechanism for conserving exchange, you may point out that, in this Government’s view, exchange should be controlled only for the purpose of correcting balance-of-payment difficulties or as a safeguard when such difficulties appear likely to ensue, and should be regarded essentially as a temporary measure. The reserves of foreign exchange which Mexico has built up during the war would appear to make the measure unnecessary for such balance-of-payment purposes, and lend weight to the view that [Page 1228] it is designed for trade barrier purposes, and not as a wartime or other national emergency measure within the meaning of Article XVII of the trade agreement.
The Department desires to receive the Embassy’s view as to whether a formal protest should be made at this time, and its comment concerning the reaction of Mexican importers whose interests would be affected by the measure.
Very truly yours,
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