Messersmith, G.S., Mexico City. To Laurence Duggan, Washington., 1942 November 24

Board of Economic Warfare, thwarted by Executive Order of President in taking control of U.S. foreign relations, now trying to do it through back door; BEW making determined effort to send number of people to Procurement Office in Mexico, nominally as assistants to [Floyd D.] Ransom, but with such definition of duties as would undermine Ransom's authority and cause utter confusion; cannot assume responsibility for conduct of U.S.-Mexican relations if this plan is carried through; hopes Department can do something to stop it; Col. [Theodore M.]Osborne, stationed in San Antonio, and apparently charged with army construction, came to Mexico, went to Mexican firm which manufactures nails, and asked American manager of firm to make for him large quantity of special type nails; when told it could not be done because firm could not even supply Mexican demand for nails, Osborne told the manager he was not a good American, etc.; the manager finally agreed to accept order, had it made up and shipped, but it was held up at border by Mexican authorities; now manager is in trouble with authorities and is out the cost of production, because no market in Mexico for special type nail; whole incident could have been avoided if Osborne had approached Embassy first.