812.659/55: Airgram
The Ambassador in Mexico ( Messersmith ) to the Secretary of State
[Received May 10—2 p.m.]
A–1075. The receipt is acknowledged of the Department’s airgram A–1590 of April 26, 11:50 a.m. referring to the Embassy’s despatch No. 9054 of April 9, 1943,35 and stating that certain serious questions have been raised with respect to the plan for management of the proposed Mexican national chemical industry by the American Cyanamid Company.
Prior to the receipt of the Department’s airgram under acknowledgement, the Embassy forwarded its despatch No. 9463 of April 22, 1943, which gives in detail the Embassy’s views on many of the questions raised in the Department’s communication, and which transmitted a copy of an agreement between the Mexican Government and the American Cyanamid Company to enter into a contract after certain conditions have been fulfilled. The contract embodies, therefore, in a definite form the results of the negotiations that have been carried on thus far by the American firm and the Mexican Government.
With respect to the Department’s request for information on those points not already covered in the Embassy’s despatch just mentioned, it is the Embassy’s opinion, based on conversations with the representatives of the American Cyanamid Company that it is the intention of the operating company in the proposed plan to supply Mexican requirements of drugs and chemicals not only by importations from abroad, but also by manufacturing on a substantial scale such products as are in demand in the Mexican market. The Mexican Government, it is understood, will provide the necessary capital for the construction of any manufacturing facilities that are deemed desirable. There is nothing definite, so far as the Embassy is aware, with regard to plans for plant extension but additional plant facilities are provided for in the program. They will be subject, of course, to the limitations of war conditions.
In regard to the Department’s suggestion that the Embassy make inquiry whether the Mexican Government would be receptive to an alternative proposal, the Embassy is of the opinion that it would be highly undesirable to approach the Mexican Government at this time, as the Department suggests, since the negotiations have hitherto been carried on between the Mexican Government and the American firm on a strictly private basis. If the Embassy were to intervene to the extent of inquiring whether or not the Mexican Government would be receptive to an alternative proposal, it is felt that this action would [Page 497] be interpreted by the Mexican Government as indicating that the American Government was displeased or dissatisfied with the agreements that have so far been reached with the American firm and thus would definitely suspend all further negotiations.
Concerning the proposal, mentioned in the first paragraph of the Department’s communication, that the American Government undertake to furnish the Mexican Government with such technical assistance as it will need for the consummation of plans for the development of a national chemical industry, the Embassy is of the opinion that the desires of the Mexican Government to establish a chemical industry, using as a basis the German firms in which it has intervened, could best be realized with the assistance of private American concerns qualified to provide technical assistance in all its forms. In an industry comprising many technical ramifications, this assistance would be of vital importance and an absolute necessity in the case of operation directly or indirectly by the Government. The Embassy has felt, therefore, that plans for the operation of such an industry in Mexico could best be carried on by private enterprise in cooperation with the Mexican Government, rather than on a basis of Government to Government.
The Embassy has noted with considerable interest the contents of paragraph 6 of the Department’s airgram relating to trade marks and patents. As pointed out in the Embassy’s despatch, it is the intention of the Mexican Government to turn over its proprietary interest in these trade marks and patents to the Government-owned company to be formed. It has also been stated to officers of the Embassy, who are currently carrying on conferences with officials of the Foreign Office on Proclaimed List matters, that the Mexican Government had taken over with the seized enemy properties those trade marks and patents belonging to the intervened firms and that a study was being “made of the most desirable procedure to follow with respect to patents and trademarks which are owned by German interests in Germany and used on a royalty basis by the intervened firms. Article 3 of the contract, transmitted to the Department with the Embassy’s despatch No. 9463 of April 22, 1943, specifies among other things that all patents and copyrights are to be transferred to the Government-owned corporation along with other assets and properties of the intervened firms.
It was the opinion of the Embassy officials that the seizure by the Mexican Government of German trade marks and patents would constitute another bastion in the ownership of the properties seized by the Mexican Government and would make more unlikely the return of the seized properties to the original owners after the war. As expressed informally, Mexican officials have said, with respect [Page 498] to German trade marks and patents, “Why destroy them, why not use them?”
The Embassy will await a further instruction from the Department after it has taken into consideration the Embassy’s comment as submitted in despatch No. 9463 of April 22, 1943.
- Neither printed.↩