Memorandum by the Assistant Secretary of State for Inter-American Affairs (Miller) to the Under Secretary of State (Webb)


Subject: Mexican Line of Credit.

You will be interested in the attached telegram no. 1541 of August 7 from Mexico City. Apparently we have made some headway in convincing Mexico of the wisdom of accepting the Gaston–Cortina proposal2 for a general line of credit without mention of oil.

However, I wish to call your attention to the method whereby Mexico negotiates on an important matter of this kind through the use of a Republican Senator (who has been attacking me publicly and privately) going to the White House directly. So long as Mexico feels that it has direct access to the President through members of Congress (including the Department’s enemies in Congress), it will obviously be impossible for this Bureau to function effectively in so far as concerns Mexican affairs.

  1. Text in part:

    “Bermudez told Embassy officer yesterday President Aléman, Beteta, Bermudez and Tello recently had meeting during which Tello instructed send memorandum De la Colina stating Mexico desired line of credit of $150,000,000 with no mention of oil. Copy of memorandum sent Senator Morse with request he discuss it with President Truman and explain there was no foundation for report of disunity in Mexican Cabinet over loan, and that it was not desired for political purposes. It was not clear what action De la Colina was to take but apparently Alemán hoped obtain reaction of President Truman before issuing instructions to De la Colina re formal application for line of credit.” (812.10/8–750)

  2. Described infra.