811.504 Mexico/368

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

No. 5518

Sir: Reference is made to your despatch no. 14,248 of November 16, 1943 and to your telegram no. 469 of March 27, 1944,1 concerning the special joint commission established by the Government of the United States and the Government of Mexico for the clarification, in regard to railroad workers, of the non-agricultural workers agreement of April 29, 1943.

The work of the commission has now been completed, and the recommendations of the four commissioners have been submitted as a joint report dated March 9, 1944, which was signed on March 23, 1944 in this capital, after approval by both Governments. There are enclosed for your information two signed copies of the report, one in English and one in Spanish. The four commissioners, Messrs. Luis Padilla Nervo and Manuel Aguilar for Mexico, and Robert L. Clark and William G. MacLean for the United States, have further recommended that the provisions of the report be made effective by exchanges of notes between the two Governments on April 8, 1944.

In conformance with this agreement, you are authorized to exchange two notes, as explained below, with the Mexican Foreign Office on April 8, 1944 to make effective the recommendations contained in the commission’s report. One exchange of notes should incorporate the first three pages of the report in English as transmitted herewith, and the other exchange should be to place on record the clarifications set forth in the last three pages of the English text under reference. Under instructions from the War Manpower Commission, that agency’s representative on this special commission requested that the exceptions or clarifications forming the last part of the report be the subject of a separate note, and Mr. Padilla Nervo likewise expressed a desire to have this part of the report in a separate note. For your information, the reason for this request for two notes is that the War Manpower Commission and apparently the Mexican Labor Department at the present time desire to have no publicity given to these clarifications or exceptions. The War Manpower Commission also prefers that no publicity be given to the first exchange of notes although it understands that the Mexican Government will of course have need to make an announcement thereof sooner or later in reference to the distribution among the workers affected of the fund involved.

When this exchange of notes has been completed, please inform the Department by telegram, and, in due course, please provide the [Page 1308] Department with copies thereof for its files and for transmission to the War Manpower Commission.2

Very truly yours,

For the Secretary of State:
Dean Acheson
[Enclosure]

Report of the Joint Mexican-United States Commission on Mexican Railroad Workers in the United States Under the Agreement of April 29, 1943

The commissioners representing the Republic of Mexico and the United States of America recognize that with respect to the employment of Mexican nationals on the railroads of the United States under the agreement between the two Governments dated April 29, 1943, both the Republic of Mexico and the United States have acted in consistent good faith. Notwithstanding, certain differences in the interpretation of the agreement have arisen. In the course of the conversations which have been held by the commissioners, under instructions from their respective Governments, a careful examination has been made of the agreement itself and of all pertinent subsidiary documents. Visits have been made to the places of employment of Mexican and domestic workers in the State of California, where conditions which would illustrate the misunderstandings at issue were carefully investigated by direct observation and by interrogation of workers and supervising officials. Following this examination of all the facts having a bearing on the case, the commissioners, in accordance with instructions from their respective Governments, proceeded to seek a definition of the term “place of employment”, as used in section III–B–1 of the agreement, and to consider a settlement of the misunderstandings which had arisen in the application of the agreement.

This work having been completed, the members of the commission present to their respective Governments the following joint resolution in regard thereto:

“With respect only to those non-agricultural Mexican workers contracted by the Government of the United States of America through the War Manpower Commission, in accordance with the agreement dated April 29, 1943, and who work with certain railroad corporations, it is understood that ‘place or region of employment’ is the zone corresponding to the railroad district generally known in the United States of America as a ‘roadmaster’s district’, with such limits as are already established for each roadmaster’s district by the railroad corporation having jurisdiction over the same.

[Page 1309]

“In the case of those railroads which do not administer maintenance of way by roadmaster’s districts, it shall be understood that the ‘place of employment’ shall be the already established district under the authority of that supervisory official having comparable administrative jurisdiction over comparable territory.

“In respect to the claim of the Mexican Government against the United States Government under section III–B–1 of the agreement of April 29, 1943, it is agreed that such claim shall be satisfied by payment by the Government of the United States of America to the Government of Mexico of the sum of $300,000. It is understood that the payment of the sum herein mentioned is accepted by the Government of Mexico as a complete and final settlement of all claims against the Government of the United States under section III–B–1 of the agreement of April 29, 1943 up to and including the date on which this agreement is made effective by an exchange of notes between the two Governments.”

In examining possible applications of the above agreed-to definition of the “place of employment”, the American members of the Commission have pointed out the possibility of conflict between section III–B–1 of the agreement of April 29, 1943 as herein defined and certain laws and labor practices in the railroad industry which are beyond the control of employers or the administrative officers of the United States Government. In view of this fact they have been instructed by their Government to state the necessity of placing on record by a simultaneous exchange of notes a clarification of the proposed agreement to the effect that the following circumstances shall not be considered violations of the agreement as interpreted:

1.
The existence of wage differentials arising from the so-called “step rate” increases paid as a bonus for continuity and seniority of employment since these increases are equally applicable to Mexican nationals when they have established such seniority.
2.
The existence of wage differentials known as “tunnel rates” paid for peculiarly hazardous or arduous work. These differentials, it is understood, shall be equally applicable to Mexican workers who accept such work.
3.
The temporary emergency use of workers of other rates of pay following an unforeseeable and uncontrollable act of nature which disrupts or threatens to disrupt essential traffic, provided the workers brought in are not paid for this emergency work more than their usual rates of pay for their regular employment. This exemption shall be effective only until traffic is reestablished but in no case for more than ten days.
4.
Differentials in wages within the same roadmaster’s district resulting from wage rates established under the Railway Labor Act and frozen by the Wage Stabilization Act, and which are part of the major wage structure of the industry as laid down by the first-mentioned Act, provided that official copies of the maps of these districts are immediately placed on record with the Mexican Government. It is understood that any benefits under these Acts shall also be enjoyed by Mexican workers.
5.
Incidental operations within the place of employment not connected with the railroad operation or maintenance by persons who are neither directly nor indirectly in the employ of the railroads.

At the request of the Mexican members of the commission it was agreed to request the Government of the United States to take action through appropriate channels to expedite the assignment of properly qualified Mexican nationals, in the United States under the agreement, to other types of railroad employment which require greater skill than track maintenance and which are more highly paid.

The Commissioners of Mexico and of the United States of America sign this Joint Resolution, after approval by their respective Governments, in the city of Washington, District of Columbia, on March 23, 1944.

Luis Padilla Nervo

Commissioner of Mexico
Manuel Aguilar

Commissioner of Mexico
Robert L. Clark

Commissioner of the United States
William G. MacLean

Commissioner of the United States
  1. Neither printed.
  2. Copies of the notes described above, No. 2502 and No. 2503 from the Ambassador and No. 3589 and No. 3600 from the Mexican Minister for Foreign Affairs, all dated April 8, 1944, were transmitted to the Department in despatch No. 17,014 of April 17; notes and despatch not printed.