Memorandum by the Chief of the Division of Mexican Affairs (Carrigan)66

It will be recalled that, with the successful conclusion of the Conference in Mexico City, a situation seems rapidly to have developed that may be of extreme seriousness. Essentially, extremists—both right and left—are making a determined attack upon the President and the Foreign Minister.

In the underlying letter of March 17,67 the Ambassador reports that the political situation is of so serious a nature that he has concluded it would be futile at this time to continue his conversations with the Foreign Minister concerning the return of foreign oil companies into the Mexican oil industry.

[Page 1161]

There is no particular action that we can take in this matter, other than to keep a careful watch on the situation (which the Embassy is doing), and to take particular pains at this end to avoid steps which might strengthen the hands of the extremists. Mention in the latter respect may be made of the Water Treaty and its handling,68 and of the present visit to Washington of Minister Suárez69 of Mexico—who is one of these extremists.

  1. Addressed to Under Secretary of State Joseph C. Grew, Assistant Secretary Nelson A. Rockefeller, Special Assistant to the Secretary G. Hayden Raynor, Adviser on Petroleum Policy Charles B. Rayner, Director of the Office of American Republic Affairs Avra M. Warren, and George H. Butler and John E. Lockwood of that Office.
  2. Letter from Ambassador Messersmith to John W. Carrigan, Chief of the Division of Mexican Affairs, not printed.
  3. For documentation concerning the Water Treaty signed in Washington on February 3, 1944, and the supplementary protocol signed in Washington on November 14, 1944, see Foreign Relations, 1944, vol. vii, pp. 1359 ff.; for texts, see Department of State Treaty Series No. 994, or 59 Stat. (pt. 2) 1219.
  4. Eduardo Suárez, Mexican Minister of Finance.