611.1231/455a: Telegram

The Secretary of State to the Ambassador in Mexico (Messersmith)

1215. For your information the following developments are reported with regard to the progress of trade-agreement negotiations with Mexico:

Owing to delay in obtaining views of Petroleum Coordinator this Government has not yet presented a firm offer on petroleum. Although this matter should be cleared up shortly, and this expectation has been intimated to Dr. Beteta, latter intends to return to Mexico immediately with remaining members of delegation. Dr. Beteta explained that his departure did not mean breaking off of negotiations or discouragement on part of himself or his government concerning the progress thereof, that his presence in Mexico would be helpful in explaining the situation to his government both with regard to petroleum and with regard to concessions we are asking of Mexico, and that if continuation of negotiations is left in his hands he would be ready to return to Washington once our full proposals had been received and discussed with high officials in Mexico City.

Accordingly, once full proposals of this Government have been formulated, which Department hopes will be within next 10 days, it is intended to transmit them to Mexican Embassy here, with informational copies to you.

Hull