FOREIGN RELATIONS, 1942, VOLUME VI



  Article IV of the draft general provisions as presented by the
United States on exchange control was acceptable to the Mexican
Government without change.
  With regard to Article V on monopolies and government purchases,
the Mexican Government wished to have the word "transportation"
included among the considerations such as price, quality, market-
ability and terms of sale which would be taken into account by gov-
ernment purchasing agencies. The Mexican negotiators were assured
that this proposal would receive our sympathetic consideration.
  In regard to Article VI on customs administrative matters, advances
in duties, customs penalties, consultation on technical matters and
Committee of Sanitary Experts, the Mexican Government was in
accord with the first four points, but on the fifth desired a change
which would result in the sanitary experts (an equal number rep-
resenting each government) reaching a decision and not merely a
recommendation, as set forth in the United States draft. Further,
the Mexican negotiators desired that an arbitrator be appointed in
case of disagreement by the technical experts representing each gov-
ernment in order that a final decision might be reached, binding on
both governments. The Mexican negotiators were given an explana-
tion of the restrictions encountered by the laws and regulations of the
United States Government affecting sanitary matters. Reference was
made to the case which arose several years ago in connection with the
operation of the trade agreement with the Netherlands, under which
progress was made in working out a solution of a difficult sanitary
question concerning the importation of tulip bulbs from the Nether-
lands. The Mexican negotiators agreed that there was some value
in the procedure provided for by our proposal but they desired to
strengthen it so that a mere recommendation by representatives of
the two governments on sanitary matters would not merely be pigeon-
holed and no action result. The Mexican negotiators were informed
that we probably could not agree to their request due to the legal
restrictions in this country, but we would of course submit their pro-
posal for further consideration.
  Articles VII and VIII, on duty concessions by the two countries,
and Article IX, on compensating taxes, were accepted by the Mexican
Government.
The Mexican negotiators raised no question concerning the provi-
sions of Article X, quotas on scheduled products, except that at the
end of the third paragraph they requested that some such phrase as
"to which both countries are signatory" should be added.
  Article XI, covering withdrawal or modification of concessions,
was also acceptable to the Mexican Government without change, and
they promised in the near future to submit a draft of those provisions,



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