812.75/2–646

The Secretary of State to the President of the International Telephone and Telegraph Corporation (Behn)

confidential

My Dear Colonel Behn: In a letter of August 22, 1944, addressed to Secretary Hull by Mr. Frank C. Page43 of your company, it was stated that the L. M. Ericsson Company had made a proposal to the International Telephone and Telegraph Corporation to acquire its interest in the Mexican Telephone and Telegraph Company, and inquired whether this transaction would be contrary to the policy of the United States Government.

In a letter of January 9, 1945, addressed to Mr. Page,44 Mr. Stettinius stated that it was the considered judgment of the Government of the United States that the interests of the United States and of the Western Hemisphere would be afforded greater security and would be better served if such vital means of communication as the telephone system in Mexico were entrusted to Western Hemisphere interests.

Mr. Stettinius’ letter was written, of course, while the United States was a belligerent in the war. Meanwhile the war has come to an end and the considerations of security which dictated the statement of policy enunciated by former Secretary Stettinius have undergone a change.

Consequently, no objection will be interposed by the Government of the United States to the sale or other disposition of your telephone subsidiary in Mexico.

Sincerely yours,

James F. Byrnes