International Trade Files: Lot 57D284, Box 106

Memorandum by the Vice Chairman of the United States Delegation (Wilcox) to the Chairman of the United States Delegation (Clayton)

(1)
At the outset of the Conference, as a result of your intervention in Washington, the United States permitted Mexico to increase its tariff by converting specific to ad valorem rates thus increasing their restrictions against U.S. imports without giving us any quid pro quo.
(2)
At the same time, the United States agreed to enter into negotiations under the trade agreement after the Havana Conference, under which Mexico might be permitted to make further increases in these and other tariff rates.
(3)
The Mexicans told us, at your second luncheon for Beteta,1 that their only real concern in the Charter was with the provisions dealing with tariff negotiations: Article 17, on tariffs and preferences; Article 13, the escape clause for economic development; and Article 81, dealing with the composition and operation of the Tariff Committee. They said that they had no interest whatsoever in Q.R. and were not opposed to our position on prior approval for Q.R.
(4)
Following a series of direct negotiations between the United States and Mexican Delegations, we have agreed to a revision of Article 17 which was accepted by the Mexican Delegation as completely satisfactory to them.
(5)
We also have agreed to a revision of those parts of Article 13 which have to do with releases from commitments in trade agreements, and this revision has also been accepted by the Mexicans as completely satisfactory to them.
(6)
We had worked out in cooperation with the Mexicans a proposal which substantially modifies the provisions concerning the Tariff Committee and gives them the Economic Development Committee which they had sought. This proposal was agreed upon and submitted by Australia, Mexico, and the United States.
(7)
We have undertaken successfully to meet the Mexican position on a number of other points which they had said were of less vital importance to them.

In spite of the fact that we have gone one-hundred percent of the way to satisfy the Mexicans on everything they said they regarded as fundamentally important, they are now vigorously opposing us.

Their representative in the committee dealing with prior approval on release from Charter obligations (Q.R.) is now fighting for Q.R. and against prior approval.

They have now stated that they are in no way committed to the joint paper on the Tariff Committee and the Economic Development Committee which they worked out in collaboration with the Australians and the United States.

In a recent meeting of the Heads of Delegations, Mr. Beteta took the position that no issues on which agreement had been reached during the past two months were to be regarded as closed, that all agreements could be reopened by the new Coordinating Committee, and, finally, that adoption by this Conference of a Charter that was acceptable to a majority of the countries here would mean that the countries of Latin America could not accept it. Later on he contended [Page 846] that no Charter should be adopted here unless agreement on it was unanimous. In this he is simply parrotting the position repeatedly taken by Charlone, of Uruguay.

This radical alteration in the Mexican position follows the return of Beteta from a long stay in Mexico City.

. . . . . . . . . . . . . .

You should have a frank talk with Beteta about the present basis of our relations. You should keep in mind the fact that we can withdraw our agreement to every concession that we have so far made to them. You should also keep in mind the fact that negotiations for further modification of the trade agreement in their interest await the termination of the Havana Conference.

  1. Raymon Beteta, Head of the Mexican Delegation.