835.24/10–1644: Airgram
The Chargé in Mexico (Bursley) to the Secretary of State
[Received October 18—5 p.m.]
A–3758.
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Mr. Suárez wishes to cooperate closely with us in reference to prohibiting the exportation from Mexico to the Argentine of quota products from the United States and also of certain essential articles produced in Mexico. However, he now finds himself in a difficult position with the 140,000 tons of corn which he has in storage in the Argentine. His position is that we cannot help him transport it and, consequently, if he cannot find some means of inducing owners of Argentine vessels to transport it to Mexico for him, he will lose the corn which has a value of over 3 million dollars. He says that Mexico does not have the ship bottoms in which to transport the corn and that Argentine ship owners will not bring it to Mexico on a reasonable freight basis unless they are guaranteed a satisfactory return tonnage. Naturally, the Argentinians are looking for steel and steel products, zinc, pig iron, industrial chemicals and other products of equal important categories which we do not want Argentina to receive from Mexico. There seems to be no doubt that Mr. Suárez will continue to cooperate with us by prohibiting the re-exportation of quota products from the United States, but he is having his difficulties with the trafficking that is taking place in export licenses, which means that certain shipments would slip through unless the Embassy brings them to his attention and he issues a special prohibition [Page 365] on the particular shipment. While the Embassy and the Consuls at Tampico and Veracruz will be ever vigilant in this matter, the entire problem is under discussion with Mr. Suárez in the effort to work out some solution that will afford a tighter control.