812.5018/76–½
Memorandum of Conversation, by Mr. John W. Carrigan of the Division of the American Republics
| Participants: | Ambassador del Rio; |
| Mr. Farrington, Commodity Credit; | |
| Mr. Davis, Commodity Credit; | |
| Mr. W. B. Fox of New Orleans; | |
| Mr. J. F. McGurk, State—RA, Assistant Chief | |
| Mr. J. W. Carrigan, State—RA. |
The above met in Mr. Bonsal’s office the afternoon of Friday, October 29, 1943.
Ambassador del Rio opened the conversation by stating that, while he had received replies from his Government, the information received gave no indication as to what immediate shipment of protein meal might be made, but that he understood 100,000 tons would eventually become available. He did not have any information as to whether the prices fixed by Commodity Credit nor as to how much meal, at these prices, would be immediately available. He referred to a telegram from Distribuidora indicating Mexico would be glad to collaborate.
Note 1: Del Rio had confirmation from his Government of agreement in principle to collaborate with our Government on protein meal. He had nothing on prices and amounts immediately available. I gathered he intended to make the latter data available as soon as possible.
Dr. del Rio then inquired as to whether corn in the open market were not moving faster. He said that American Trading and Continental Grain had offered to deliver him all the corn he needed after November 15. He emphasized, however, that while his country was in vital need of corn, his Government would not deal with these companies except on a legal basis and with the full sanction and approval of our Government. He asked if his Government might deal directly with these companies on the open market.
It was inquired how much corn was involved. The Ambassador said 150,000 tons to be deliverable after the 15th of November. The Ambassador inquired if Commodity Credit had any comments to offer on the firm assertion of the companies they could deliver. The Commodity Credit representatives said that as yet they were unable to forecast the answer, but that the two companies under reference were very large and reliable firms indeed.
The Ambassador then said that with respect to his inquiry as to the propriety of these open market operations, he wished to point out that this was a matter entirely distinct from the protein meals, [Page 442] since he was going to see that, entirely apart from the corn—where and how it were obtained, and in what amounts—, the protein meals were made available to this country; that Mexico would be glad to sell them; and that he would be glad to see they were distributed in accordance with Commodity Credit’s instructions or desires.
He reverted to his inquiry as to the propriety of these private, open market operations.
Mr. Farrington said that the following formula would be approvable:
As of today it would be all right for the Government of Mexico to buy corn privately, subject to (a) maintenance of ceiling prices and (b) obtention of an export license.
Ambassador del Rio said his Government of course planned to abide by the ceiling prices, as it did not contemplate following other than the strict letter of the law. In so far as the export licenses were concerned, it was pointed out that Mr. Fox had had no difficulty in obtaining these, and Mr. Carrigan suggested “that, in principle and at this time, there was no reason to expect any difficulty if the amounts involved were reasonable and did not upset our market”. The Ambassador pointed out that we would hardly refuse such licenses to Mexico, and that the 150,000 tons would be purchased over a 12-month period. Mr. Carrigan remarked that these licenses were not issued by the Department of State, but that he agreed in principle with the Ambassador. It was then further remarked that the situation might change and that it might even be that corn came under rationing here. The Ambassador replied that, if such a changed situation should arise, he was sure we would wish to share with Mexico on an equitable basis what we might have.
Reference was then made to the 48,000 bushels remaining, in Kansas City, of the 5,000 tons released by Commodity Credit. The Ambassador said that this had not yet started to move. Mr. Fox said that there had apparently been some misunderstanding but that the warehouse receipts should have arrived that same day, and said he felt satisfied the corn would start moving November 1, Monday. Mr. Carrigan asked if the Ambassador and Mr. Fox were certain we need take no action: he was informed no action then seemed necessary.