339. Memorandum of a Conversation Between President Eisenhower and the Mexican Ambassador (Carrillo Flores), White House, Washington, July 1, 19601
SUBJECT
- Mexico: Lead and Zinc Problem; Agrarian Reform
The President smilingly began by referring to his “bad humor” due to the House of Representatives having just overridden his veto of the pay raise bill. He inquired regarding the health of President Lopez Mateos, the Ambassador replying that he was in excellent health. The President expressed the wish that he might pay a farewell call on the Mexican President and stressed his belief in the importance of the personal ties that had linked them in the past two years. He mused that it might be pleasant if they could meet, even for lunch, somewhere on the border—perhaps in Lower California where the hunting and fishing were so good.
The Ambassador handed a letter from President Lopez Mateos to the President and explained that it recalled the discussion of the two Presidents regarding any possible additional restrictions on lead and [Page 893] zinc.2 The President said that he did not “wiggle” in his positions, that he was still opposed to a lead and zinc tariff and would alert everybody to try to keep things on an even keel.
The Ambassador cited two reasons why the Congress should not approve a higher tariff on lead and zinc: (1) the Tariff Commission is making a study to be completed next fall, and (2) the UN Committee has been meeting and the countries concerned have agreed to reduce production.
The President asked Mr. Rubottom to bring this subject to General Persons’ attention so that he could follow it. He observed that domestic political factors had to be taken into account in achieving any understanding of the lead zinc subject. He recalled that the Tariff Commission had once recommended an increase in tariff, but the Ambassador reminded him that quotas had been substituted.
The Ambassador said that he understood the problem stemmed from the fact that certain smelters in Oklahoma and Arkansas could not get Mexican ore under the present quota system. This problem had stimulated the activity on behalf of a tariff increase by Senator Kerr (Oklahoma) and Congressman Mills (Arkansas). The Ambassador said that he knew that President Lopez Mateos recognized that the President would do his best and that the relations between them would stay friendly “no matter what the outcome”.
President Eisenhower repeated that his attitude was unchanged. He would remain watchful and would do what he could. He would write the Mexican President but asked the Ambassador also to send him greetings.
The Ambassador told the President that Mexico would like to bestow its highest decoration on Dr. Milton Eisenhower and Mr. Sam Waugh. The President said that this would be a very nice thing to do.
The President pointed out his concern over some of the observations he had made on his recent trip and some of the things that had been said to him at that time. For example, the United States, by its assistance, is perpetuating the feudal system, according to certain critics. Our assistance helps only the wealthy, and we are not interested in the poor people, they go on to say. The President then recalled what had just happened in Korea and Turkey. He inquired of the Ambassador what a government can do to help the poor people, recalling Mexico’s experience in agrarian reform.
Ambassador Carrillo Flores said that two views were under continual discussion in Mexico. First, there were those who said that economic profits had to come first in order to finance the cost of social reform. Second, others advocated that educational and social reform must come first no matter what the cost. The Ambassador said that his [Page 894] own background was such that he had to recognize the need for more productive facilities. Yet, there had to be strict care that some of the benefits went to the poor people; thus, he found himself standing on “middle ground”.
The Ambassador expressed his concern about the radical ideas of some of the graduates being turned out by the schools of economics in Latin America, who think that social reform must come first at any cost. He recalled that the United States had been sympathetic to agrarian reform in Mexico, going all the way back to President Wilson. This country had not opposed land reform, he recalled, but had demanded compensation when properties were expropriated. He thought that both positions were fair.
The Ambassador thanked the President for receiving him and departed.