171. Telegram From the Embassy in Mexico to the Department of State1
10540. Subject: Meeting With President Lopez Portillo.
1. (Secret—Entire text.)
2. Summary: During my meeting with President Lopez Portillo, June 24, the President told me that the GOM, in contrast to its approaches to the Western European countries and Japan, will not seek a comprehensive economic cooperation “package” from the U.S. On his World Energy Plan,2 the President said that more active endorsement by interested states is opportune and that the proposed early 1981 North-South summit might provide an occasion for more solid commitments on energy. With regard to the Cuban refugees in USINT Havana, the President, notwithstanding my reiteration of U.S. unwillingness now to address broader issues with Cuba, volunteered that he would raise the USINT refugee problem,3 among others, with Castro during his upcoming visit to the island. End summary.
3. I met with President Lopez Portillo, at Los Pinos, June 24, to have an informal exchange of views focusing primarily on the President’s recent trip to Europe4 and other domestic and international developments. Foreign Secretary Castaneda was present during the conversation.
4. Economic cooperation “package:” After discussion of the comprehensive economic cooperation “packages” (including trade, finance, technology transfer, investment, training) which Mexico recently has sought to obtain from Japan, France, Sweden, the FRG, and Canada in implicit exchange for petroleum supplies, I asked President Lopez Portillo to spell out his views with regard to the U.S., pointing out, for [Page 414] example, that even indirect linkages between U.S. food supplies and Mexican oil deliveries could be “political dynamite.”
5. The President, in response, stated that relations with the U.S. are a special case, given the high percentage of both Mexican oil and other exports which go to the U.S. He added that trade with the U.S. is going well, albeit with room for improvement. There is no need, the President said, to shape a new comprehensive economic cooperation package with the U.S. He said that the elements of such a package—trade, oil deliveries, investment—are already in place. The President added that, if the GOM proposed a “package” to the U.S., as had been done in the case of Sweden, people in the U.S. would say that he (President Lopez Portillo) is “crazy”—the things asked for already exist. The “package” approach, the President continued, is intended only for countries with which Mexican economic relations are not fully developed, countries which are the target of Mexican diversification efforts. With regard to the U.S., the President said, comprehensive cooperation is ensured through the working groups of the Consultative Mechanism and this is sufficient. Secretary Castaneda seemed restive during this discussion, but made no remarks.
6. The World Energy Plan: The President made extended remarks on his concern for the present economic plight of the non-oil developing countries and his dissatisfaction with current rancor between the OPEC and industrialized nations. In this regard, the President expressed regret that the Venice Summit, in his view, seemed to place all blame for current economic problems on OPEC.5 The President said that, unless the industrialized nations are willing to accept part of the blame and to recognize that the problem of inflation antedated the 1973 oil price increases, it will be impossible to go beyond exchanges of recriminations to the necessary solution of problems and the acceptance of shared responsibility to undertake concrete actions.
7. The President said that Mexico has indicated its willingness to convoke a North-South summit of, perhaps, 21 nations in early 1981 in order to give a political impulse to the solution of current global economic problems. The President, after I mentioned our support for his world energy plan, said that this summit might provide an opportunity for the industrialized nations to express their support and undertake concrete commitments with regard to a global energy regime. If such commitments were possible also on the part of the OPEC nations attending, the President said, an energy-related initiative in the UN context (presumably in the “global dialogue”) might take shape and be given momentum.
[Page 415]8. In the interim, the President said that it might be possible to discuss appropriate strategy and modalities for expressions of support for the world energy plan by the U.S. and other industrialized nations—support which now appears opportune and desirable.
9. With regard to the short-term future, the President said that he and President Herrera Campins of Venezuela have come to an agreement on how to ease the economic burden of non-oil countries of Central America and the Caribbean. The details of the agreement, he said, will be announced during President Herrera’s trip to Costa Rica. The President views this agreement as a step or model for a global one.
10. I took advantage of the President’s discussion of his world energy plan to ask him how the plan squared with the GOM’s current effort to secure economic benefits from its petroleum beyond those provided by market price. The President said that the answer is simple—Mexico is willing to assume obligations that would imply a sacrifice if all other nations are willing to do so. While this is not the case, Mexico will pursue its particular interests.
11. Cuba: I thanked President Lopez Portillo for Mexico’s efforts, albeit unsuccessful, in seeking to resolve the refugee problem in the U.S. Interests Section, Havana. Secretary Castaneda, in his only intervention during the meeting, asked whether there was anything new on this situation. I replied that the United States still believes that the problem is humanitarian in nature, flowing from Castro’s abuse of his own citizens, and that the U.S. continues to be unwilling to address broader questions with Cuba in connection with this matter.
12. President Lopez Portillo interjected that he would raise the USINT refugee problem, among others, when he meets with Fidel Castro in Havana in late July-early August.6 He said that in direct President-to-President conversations many things can be discussed and resolved. The President, while saying that he preferred that nothing be “formalized” before the meeting, said that a possible “formula” might be found to solve the problem during his Castro conversations. He added that, “you can trust us” on this matter.
13. Begin comment: The conversation with President Lopez Portillo was particularly useful because the President, in Secretary Castaneda’s presence, specifically discarded the possibility of seeking additional comprehensive economic benefits in the form of a new “package” agreement from the U.S. in exchange for Mexican oil. While a slight loophole was left on the question of trade, the context of the President’s [Page 416] remarks appeared to suggest that trade issues would be handled on their merits, rather than linked to oil. We understand from FonSec sources that preparation for an intersecretarial meeting on a desirable economic approach to the U.S., in light of Mexico’s new efforts to seek comprehensive economic cooperation, is underway. It is not inconceivable that President Lopez Portillo’s response to us preceded such a meeting—thus possibly upsetting Secretary Castaneda whose recent Council on Foreign Relations’ speech appeared to presage some type of link between oil and other economic benefits from the U.S. This may have explained Castaneda’s apparent restiveness at this point in the conversation.
14. With regard to the President’s World Energy Plan, he now appears more receptive to expressions of support from industrialized nations. We will discuss with the Mexicans here how our support might usefully be shown. It also appears clear that the President will seek to use the proposed 1981 North-South summit, should it take place, to give new impetus to his plan. Washington will presumably wish to begin considering this matter, particularly with regard to the energy-related “concrete commitments” which the President appears to be seeking.
15. On Cuba, the President clearly understood my statement that the U.S. would not accept a linkage between the USINT refugees and discussion of broader U.S.-Cuban issues. His expression of readiness to seek to solve the problem with Castro would, therefore, appear to imply an effort to seek their departure without the conditions advanced by the Cubans heretofore. I sensed from his tone that he plans to have a very frank discussion with “Fidel,” as he put it. End comment.
- Source: National Archives, RG 59, Central Foreign Policy File, D800330–1149. Secret; Immediate.↩
- See footnote 15, Document 164.↩
- Regarding the Cubans being sheltered in the U.S. Interests Section, see Document 103. Beginning on May 26, the Mexican Government began acting as an intermediary between the United States and Cuba, so that the refugees in the U.S. Interests Section could leave Cuba. (Telegram 8777 from Mexico City, May 27, Carter Library, National Security Affairs, Brzezinski Material, Country File, Box 49, Mexico, 2/80–1/81) In telegram 168732 to Mexico City, June 26, the Department instructed Ambassador Nava to thank Lopez Portillo for his assistance (National Archives, RG 59, Central Foreign Policy File, D800309–1059)↩
- In telegram 8299 from Mexico City, May 15, the Embassy reported that Lopez Portillo planned a trip to France, West Germany, Sweden, and Canada in mid-to-late May, with the aim of reducing Mexico’s trade deficit and promoting petroleum exports. (National Archives, RG 59, Central Foreign Policy File, D800241–0016)↩
- The 6th G–7 Economic Summit was held in Venice from June 22 to June 23.↩
- Lopez Portillo visited Cuba from July 31 to August 3. In telegram 12943 from Mexico City, August 8, the Embassy reported on his visit. (National Archives, RG 59, Central Foreign Policy File, D800378–1033)↩