Messersmith, G.S., [Washington]. Memorandum of conversations on activities of Board of Economic Warfare and other agencies of U.S. Government in Mexico., 1943 January 31

Reports conversation with Vice President [Henry A.] Wallace in which he informed Wallace of the labor clauses some of the agencies were trying to insert in procurement contracts, the rubber program, the indiscriminate making of contracts, and the sending of too many men from Washington to Mexico without adequate directives and without specific programs; Wallace arranged meeting next day in his office with Milo Perkins and other high officials of B.E.W.; went over same ground with them, and although meeting was amicable, found they had little comprehension of problem, and that they had further plans for sending increased personnel to Mexico and other countries; following day lunched with Secretary [of Commerce Jesse H.] Jones and [Assistant Secretary] William L. Clayton [also chairman of Rubber Development Corporation] and went over procurement and development projects Reconstruction Finance Corporation is financing; as Jones and Clayton now have responsibility for rubber procurement and development in Mexico, discussed rubber situation with them and informed them amount of rubber Mexico could produce had been overestimated; they asked Messersmith to see [William M.] Jeffers, [Rubber Director, War Production Board], and give him same information; saw Jeffers on Saturday; gave him full picture with regard to getting rubber from Mexico; raised question of B.E.W. sending rubber mission to Mexico and expressed opinion such a mission would be unproductive; Jeffers and associates were understanding of problem; foregoing conversations confirm what Department already knows, that [Milo] Perkins is largely responsible for indiscriminate sending out of personnel, confusion in procurement programs, insistence of labor clauses in contracts, and other factors which cause concern for success of procurement programs.