812.24/12–1847
The Ambassador in Mexico (Thurston) to the Secretary of State
No. 5225
Sir: I discussed yesterday with the Minister for Foreign Affairs the subject of a modification of the terms of the Lend-Lease Agreement of March 18, 1943 along the lines set forth in the Department’s confidential airmail instruction Number 1585 of November 19, 1947 and the draft of a note that accompanied it.14a For the convenience of the Minister, I had embodied my contemplated remarks in a draft of a note, to which I attached a copy of the draft note transmitted with the instruction just cited.
Señor Torres Bodet stated to me when I had terminated my introductory remarks that he wished to reiterate at the outset Mexico’s intention to negotiate a settlement of its Lend-Lease indebtedness to the United States. He then stated that an arrangement along the lines described in the draft notes I had just shown to him would probably be welcome, inasmuch as Mexico’s dollar position would make it impossible for some time yet to come for it to undertake the liquidation of this indebtedness in dollars. At the same time, he said, the budget for the coming year has virtually been completed and is about to be submitted to Congress—and in consequence it is not likely that any schedule of payments, even on a peso equivalent, can be undertaken at this time. He then tentatively suggested that such payments under the contemplated modified program begin in 1949.
I then mentioned that I had observed in the morning newspapers that legislation whereunder foreign governments may obtain ownership of land in Mexico for their diplomatic establishments is now before the Mexican Congress. The Minister stated that the Senate had approved the bill to which I had referred and that it would next come before the Chamber of Deputies. He added that he was not sure that this legislation would embrace land for consular establishments and suggested that if this should prove to be the case and we could not utilize the full Mexican payment for the acquisition of diplomatic property in Mexico City, perhaps the settlement could be partly in land and partly in pesos. In this connection, he expressed the desire to know approximately how much the American mission and its affiliates here spend in pesos per annum. I said that as far as I was aware, such information could be made available and that I would endeavor to supply it, provided no objection to such action appeared on the part of my [Page 751] Government. It would be appreciated if the Department would inform me of its decision with respect to this request.
The Minister then stated that the proposal I had presented would of course require study by several other ministries and departments, and requested that I leave with him for translation and reference to those agencies the texts of the two drafts I had shown him. I accordingly handed to Señor Torres Bodet the two documents alluded to, with the understanding that they are informal, unofficial, and tentative. In view of the impending Christmas and New Year’s holidays, it is unlikely that there wall be any developments in this negotiation until mid-January or even later.
Respectfully yours,
- Draft note not printed.↩