Joint Memorandum Relative to the Termination of the Cooperative Railroad Program Undertaken by the Government of the United States of Mexico and the United States of America 9

This Joint Memorandum, made between Pablo Hernández, Director General of the National Railways of México, of the United States of México, and the Institute of Inter-American Transportation, an agency of the Government of the United States of America (hereinafter called “Institute”), represented by its President Robert J. de Camp, is entered into for the purpose of reporting the termination of the cooperative railroad program undertaken by virtue of an agreement entered into by the representatives of the Governments of México, and of the United States of America, as set forth in the diplomatic notes between the Minister for Foreign Affairs of the Mexican Government, and the Ambassador of the United States of America to México, dated November 18, 1942,10 and as modified and extended by notes dated September 21, 1944, December 13, 1944, December 29, 1944, April 17, 1945, December 20, 1945, and March 5, 1946.11

The agreement was entered into at the time when the Mexican National Railways were being called upon to carry a traffic burden several [Page 1037] times peacetime peak loads and it was necessary that certain basic changes and improvements be made in order that optimum efficiency in the operation of the railroads could be assured for the transportation of materials from Central America, and particularly México, vitally needed in the war effort. The Mexican Government and the Mexican National Railways, agreed to contribute a proportionate share of the materials and equipment, as well as direct its operating facilities toward the fullest realization of the rehabilitation program. The United States, on its part, agreed to supply materials and equipment, pay the cost of certain repairs and send to Mexico a staff of technicians to be known as the United States Railway Mission. The United States carried out its obligations, first, through the Office of the Coordinator of Inter-American Affairs, and subsequently through the Institute of Inter-American Transportation.

Clause I

The parties hereto declare in mutual agreement that there has been on the part of both parties complete and satisfactory compliance with the agreement in all of the provisions thereof, and especially desire to report the following facts:

The United States of México, through the National Railways, during the life of the program, expended in connection with the rehabilitation of the National Railways, the sum of approximately $40,000,000.00 (U. S. Cy.), and in addition has contracted for the purchase in the United States of new equipment involving an additional large sum of money. The parties hereto take this occasion to renew their approval of the collaboration of the Government of México, and the National Railways, in carrying out the cooperative railroad program and ratify the activities of the Government of México, and the National Railways in connection with this program.
The Institute has contributed to the National Railways of México, the sum of three million six hundred eighty-nine thousand two hundred three dollars and twenty-eight cents ($3,689,203.28—U. S. Cy.), and has also spent directly the sum of one million one hundred seventy thousand eight hundred thirty-four dollars and twenty-six cents ($1,170,834.26—U. S. Cy.), making a total of four million eight hundred sixty thousand thirty-seven dollars and fifty-four cents ($4,860,037.54—U. S. Cy.), for the purchase of materials, equipment and other costs of the railroad program as required by the agreement which terminated on June 30, 1946., and in addition as set forth in Clause II hereof, the Institute is committed to reimburse the National Railways a sum not to exceed a maximum of five thousand nine hundred thirty-five dollars and fifty-nine cents ($5,935.59—U. S. Cy.). In addition the Institute has made available the services of the technicians of the United States Railway Mission called for in the agreement, [Page 1038] and has expended in connection therewith a sum estimated at one million eight hundred seventy-five thousand nine hundred and nine dollars and thirty-six cents ($1,875,909.36—U. S. Cy.), making a total of six million seven hundred forty one thousand eight hundred eighty-two dollars and forty-nine cents ($6,741,882.49—U. S. Cy.), contributed by the Institute to the railroad program. The parties hereto take this occasion to renew their approval of the collaboration of the United States Railway Mission, in fulfilling to the entire satisfaction of the parties its functions and responsibilities in cooperating with the National Railways, in carrying out the cooperative railroad program and to ratify their activities in connection with this program.

Clause II

As a part of the operations of the cooperative railroad program, a number of commitments or projects were undertaken all of which were signed by the parties hereto, or their predecessors, in office. A list of the commitments or projects by number, description and funds reimbursed by the Institute to the National Railways or spent directly by the Institute is contained in Appendix “A”12 to this memorandum. It is to be noted that there remain a few commitments or projects, for which reimbursement in full has not been made by the Institute to the National Railways, which commitments are set forth at the end of the same Appendix. It is understood that the National Railways, have in accordance with the commitments or projects last described spent funds for which they have not been reimbursed by the Institute. It is hereby understood and agreed that the National Railways of México may submit vouchers to the Institute showing expenditures in connection with the said commitments or projects and that the Institute will reimburse the National Railways, in amounts not to exceed the maximum of $5,935.59, for the unpaid commitments as set forth in Appendix “A”, provided that all vouchers for which reimbursement is to be made by the Institute, must be received from the National Railways by the Institute not later than July 15, 1946.

Clause III

The Institute may continue to maintain personnel in the United States of México, for such period as may be necessary to conclude the affairs of the Institute, to liquidate its obligations and to carry out and complete such details as may remain to be done to conclude its obligations under the agreement referred to above. A designated representative of the Institute shall act on behalf of the Institute and shall be authorized to take all necessary action to effect speedy liquidation of the participation of the Institute in the cooperative railroad program.

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Clause IV

This Joint Memorandum shall have the effect of a formal agreement completely binding upon the parties hereto.

In Witness Whereof the undersigned execute the present Joint Memorandum in quadruplicate, in the English and Spanish language, in the City of México, México, this 5th day of July 1946.

p.m. Hernández

Director General National Railways of México
Robert J. de Camp

President Institute of Inter-American Transportation
  1. Copy transmitted to the Department in despatch 497, July 22, 1946, from Mexico City; received July 24.
  2. For exchange of notes signed at Mexico City, November 18, 1942, by the Mexican Minister for Foreign Affairs (Padilla) and the Ambassador in Mexico (Messersmith), see Department of State Executive Agreement Series No. 289, or 56 Stat. (pt. 2) 1824.
  3. For texts of notes, see The United States Railway Mission in Mexico 1942–1946: A Summary Report (multilith), by the Institute of Inter-American Transportation (Washington. 1947), pp. 89–97. For documentation on this subject, see Foreign Relations, 1944, vol. vii, pp. 1234 ff., and ibid., 1945, vol. ix, p. 1159.
  4. Not printed.