550.S1 Washington/485

Memorandum by the Chief of the Division of Mexican Affairs (Johnson) of a Conversation Between American and Mexican Representatives

Meeting: At Department of State at 10 a.m., May 12.

Present: The Secretary of State, Mr. Tugwell, Mr. Bullitt, Mr. Feis, Mr. Warburg, Mr. Johnson, Mr. Alberto Pani, Mexican Minister of Finance, the Mexican Ambassador, Mr. Gomez Morin, Director of the Mexican National Railways and the Bank of Mexico, Mr. Arroyo, Chief of the Tariff Section of the Mexican Ministry of Finance, and Mr. de la Torre, Secretary to Mr. Pani.

The Secretary of State gave a general explanation of the American Government’s conception of the purposes and general scope of the Economic Conference. He asked the Mexican Delegates some questions in regard to various Mexican commodities which find a market in the United States. The Mexican Delegation expressed its agreement with the views of the Secretary of State in regard to certain principles held by this Government relating to tariff questions. There was a general discussion of this matter.

The Secretary suggested that the Mexicans prepare a brief list of certain of their commodities which could enter the United States without entering into serious competition with any American products, and said that we would prepare a similar list of American products needed in Mexico, the two to be discussed at the next meeting. It was made clear to the Mexicans that furnishing such a list did not constitute any commitment on the part of this Government for any sort of reciprocal agreement which would have to await subsequent developments, but was to be merely for purposes of discussion, and in order for this Government to have a clear idea of the Mexican Government’s desires.

Mr. Warburg spoke at length in explanation of this Government’s views in regard to monetary problems, price levels and currency.

In discussing the silver situation, the fact was brought out that the United States, Mexico and Canada, produced eighty percent of the world’s silver, and the Secretary expressed the desirability of those three countries getting together for informal discussion and possible agreement in regard to the matter at the Economic Conference. He suggested also the advisability of our now requesting the Canadian Government to send immediately to Washington a silver expert for a [Page 550] discussion between this Government and the Mexican Delegates of the silver problem. Mr. Pani expressed himself in agreement with this idea, and it was agreed that it should be done. A meeting with Canadian representatives and the Mexican and American delegates was fixed for Tuesday afternoon at 3:30, May 16,44 provided by that time the Canadian representative can get here.

Mr. Pani indicated that the general problems and aims of his Government were the same as those of the United States, and expressed agreement in principle with all the views exposed by the Secretary, Senator Pittman, and the other American representatives.

Mr. Pani stated that he was leaving for New York tonight, but that he would return to Washington Tuesday morning.

  1. For memorandum of this conversation, see p. 516.