Messersmith, G.S., Mexico City. To Laurence Duggan, Washington.
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University of Delaware Library, Museums and Press
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Mexican shipbuilding program broken down; Mexican Company made bid of $250,000 per ship, which was thought to be too high; truth is, nobody knows the cost of building 700-ton ships in Mexico because it hasn't been done; even Mexicans are guessing; Percy Douglas [from Office of Coordinator of Inter-American Affairs] suggested ordering four ships at Mexican Company's price and then reestimating cost; seemed reasonable solution; [Alexander M.] Peabody, of Inter-American Navigation Corp., pointed out competitors of Mexican Company might complain of being frozen out and call for investigation, resulting in unpleasant publicity; that would do tremendous harm in Mexico and must be avoided; several facts should be considered: (1) Mexico and Cuba the only Latin American Countries in which the ships can be built and chances of doing so in Cuba small, (2) only company in Mexico that can build them is the one organized by Gen. [Abelardo L.] Rodriguez, and(3) Mexico can supply all materials needed for construction except engine.