FOREIGN RELATIONS, 1942, VOLUME VI



case had been brought to our attention and that we would look into
the matter. In the meantime the Mexican negotiators were requested
to supply a memorandum providing details on the specific cases to
which reference had been made.
  On the second point the Mexican negotiators were given a brief
outline of the difficulties in this country growing out of the applica-
tion of laws which did not take into account such factors as multiple
rates of exchange in foreign currencies. The Mexican negotiators
were told that while we probably could not agree to the proposal
which they had made, which was to use the language of the trade
agreement with Costa Rica27 on this subject, possibly we would be
in a position to submit to them language in more general terms.
  It was agreed that the next meeting would be held as soon as the
negotiators on either side had prepared further material for consid-
eration of the representatives of the other government.


  [Meetings of the American and Mexican technical negotiators were
begun on July 20, 1942. Records of these discussions are not
printed.]

611.1231/427
Memorandum    of Conversation , by the Chief of the Division of
          Commercial Policy and Agreements (Hawkins)

                                     [WASHINGTON,] July 30, 1942.
  Dr. Beteta called on his own initiative in connection with the trade-
agreement negotiations. He said he is now authorized to accept our
reservation regarding the Canal Zone.
  He also referred to the sanitary clause and stated the reasons for
proposing that disputes on sanitary matters be made in effect a
matter for arbitration, the reasons for this proposal being the belief
that sanitary restrictions may sometimes be imposed for other mo-
tives. I outlined at some length the objections to the proposal, and
he said that he would take up with his Government the question of
accepting our draft as submitted.
  He next referred to the transit clause which the Mexican Govern-
ment had proposed and mentioned the sanitary aspects of this matter.
I told him that any sanitary measure, whether or not in connection
with transit, would presumably be covered by the provision referred
to above; and that we would look into the feasibility of including
the clause from the purely transit standpoint.
  With reference to Schedule I, Dr. Beteta said that Mexico could
not make concessions on agricultural products. I explained to him
- For text of agreement signed November 28, 1936, see Department of State
Executive Agreement Series No. 102, or 50 Stat. (pt. 2) 1582.



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