Objection by the United States to Mexican government control of a New York State commercial bank
[On October 10, 1944, the Banco de México, S.A., the central banking institution of Mexico, acquired ownership and control of the Pan American Trust Company of New York, a private commercial bank operating under the supervision of the Banking System of the State of New York and of the Federal Reserve System. By instruction No. 7095 of March 3, 1945, not printed, the Ambassador in Mexico (Messersmith) was requested to inform the appropriate officials of the Mexican Ministry of Foreign Relations that the United States Government did not look with favor upon the transaction, and on April 30 at the Ministry he explained to Pablo Campos Ortiz, the Director General of Political Affairs, certain difficulties arising under the laws of the United States and of New York (Despatch No. 24,145, April 30, 1945, 812.516/4—3045). On July 6 two Mexican representatives met at the Federal Reserve System building in Washington with two Governors and other officials of the Federal Reserve Board, and with representatives of the Federal Reserve Bank of New York, the Federal Deposit Insurance Corporation, the Treasury Department, and the Department of State. At this meeting the United States officials indicated why they were asking the Banco de México to divest itself of its interest in the Pan American Trust Company (memorandum of conversation, by William G. MacLean of the Division of Mexican Affairs, July 6, 1945, 812.516/7–645). Through further correspondence and discussions it was agreed that the Banco de México would dispose of its [Page 1188] holdings by sale to private interests, and on August 22, 1945, S. R. Carpenter, Secretary of the Board of Governors of the Federal Reserve System, wrote to the Banco de México to express gratification that an amicable arrangement had been worked out (812.516/8–2245. In June 1946 Mr. Rodrigo Gómez, Manager of the Banco de México, informed the American Embassy in Mexico that he was confident that all the remaining shares of stock would be disposed of before August 31, 1946, the time limit agreed to with the Federal Reserve System (812.516/6–2846).]