811.504 Mexico/364
Memorandum by the Director of the Office of American Republic Affairs ( Duggan ) to the Under Secretary of State ( Stettinius )
Mr. Stettinius: The special United States-Mexican commission to define “place of employment” under the agreement,84 and to seek a settlement of Mexican claims to date thereunder, has reached an understanding (1) on a definition designed to make it possible for the railroads to use Mexican workers without incurring claims, and (2) on the desirability of wiping out all past claims by a lump sum settlement. For several weeks the American members of the commission have felt that agreement could be reached on a maximum sum of $250,000. They have never been authorized to mention more than $150,000, which was turned down, in part because the railroads involved have previously let escape to the Mexican commissioners a willingness to pay up to $200,000.
On Friday the commission was invited to meet with Governor McNutt85 who made an offer of one million pesos direct to the Mexican commissioners,86 who stated that they were offended at the manner in which the offer was made. They were pacified by the United States members of the commission, and on condition that Governor McNutt withdraw his offer direct to them, they agreed to continue negotiations.
The commission met Saturday, and the Mexicans again expressed strong objections. They had apparently discussed the matter with Ambassador Castillo Nájera and other members of his staff who, they indicated, shared their attitude.
Under instructions from the War Manpower Commission, our representatives reluctantly pressed the Mexicans to make an offer. They specified $487,000. Our representatives replied that from a practical viewpoint they would be unable to urge that sum upon this Government. They mentioned $250,000 which was turned down as too near the offer made by Governor McNutt which they felt had to be departed from because of the implications surrounding it. They indicated upon inquiry that they would be willing to submit an offer of [Page 1302] $300,000 to their Government, and it is possible that they may recommend that it be accepted.
The attitude of the Department to date has been that its representative on the commission is in an advisory capacity and that the initiative in this matter belongs to the War Manpower Commission. However, in view of the unfortunate circumstances of the meeting Friday, it now appears to be desirable for the Department to inform Governor McNutt that a delicate situation has arisen, and that it is the opinion of the Department that this question should be settled immediately in the interests of friendly relations with Mexico. The Commission is scheduled to meet late this afternoon.87
- The agreement of April 29, 1943.↩
- Paul V. McNutt was Governor of Indiana, 1933–1937.↩
- Padilla Nervo and Manuel Aguilar.↩
- A marginal note on this March 6 memorandum, initialed by Mr. McGurk, reads as follows: “March 7, ’44, Note: The Under Secretary telephoned Gov. McNutt yesterday after discussing the matter with Messrs. Bonsal, McGurk & MacLean. It was agreed that the offer would be for $300,000.”↩