Messersmith, G.S., Mexico City. Despatch No. 9262 to Secretary of State [Cordell Hull], Washington, D.C.
Date
1943-04-13
Journal Title
Journal ISSN
Volume Title
Publisher
University of Delaware Library, Museums and Press
Abstract
Description
Marked inflationary tendency becoming evident in Mexico; because of U.S. purchase of metals and other strategic materials from Mexico, flow of money into Mexico has increased so that consumer has increased purchasing power, but fewer consumer goods available for purchase, which causes prices to rise; Mexican government conscious of problem, but taking no adequate steps to alleviate it; talked with Finance Minister [Eduardo] Suárez, who stated only solution was increase of consumer goods deliveries from U.S.; if inflation continued, he said, it might become necessary to revalue the peso, which would increase cost of strategic materials U.S. was getting from Mexico; told him U.S. was following policy of strict equity in delivery of goods to other American countries and that because of war effort increase was impossible; suggested price controls as best remedy, but he wouldn't even discuss it; Eduardo Villaseñor [Angeles] in address made recently in National School of Economy was highly critical of U.S. for not delivering larger quantities of materials to Mexico; speech had approval of Suárez but not of Mexican Government in general; it had repercussions among Mexican people, many of whom hold U.S. responsible for high prices; was asked to make speech before National School of Economy two days after Villaseñor's speech; although Messersmith's speech had been prepared three weeks earlier, it refuted almost every statement made by Villaseñor; address was given wide publicity and has helped to correct situation created by Villaseñor's remarks; Mexican people beginning to feel hunger because of increased prices of essential foodstuffs; Mexico is not self-sufficient as far as foodstuffs are concerned; rice is basic food in Mexico but scarce in the market and almost double its former price; news that U.S. had purchased 6,000 tons of rice from Mexico created impression that scarcities in the market are caused by purchases by U.S.; Mexican Government did not permit shipment of rice, but scarcities remain, probably due to speculators; recommends that U.S. attempt to buy no more foodstuffs from Mexico except with consent of Mexican Government.
Keywords
Messersmith, George S. (George Strausser), 1883-1960.