Box 16

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Comments on information and intelligence programs; best and most reliable information gathered and disseminated by Foreign Service officers in missions and consulates, all open and above board; is opposed to use of Naval and Military Attachés as intelligence officers; such under cover agents as are necessary should operate under FBI.

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Reports on activities of Communists in Mexico and their attacks on U.S. and on Messersmith personally; motivation comes from Moscow; Russia would like nothing better than to see American solidarity broken up; Russians aided and abetted by Vicente Lombardo Toledano; asks Carrigan to show letter to other officers in Department who should see it.

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Enclosed with No. 1765. In speech at meeting in Cuernavaca Lombardo Toledano reaffirmed previous statements regarding arms shipments and the Sinarquist Union; speech poorly attended and many who were there left before it was over; source close to him reports he is in highly nervous condition.

Scope and Contents Enclosure: See No. 1764. Enclosing copy of memorandum from Civil Attaché on [Vicente] Lombardo Toledano; not surprised he is suffering from nervous exhaustion; he has no regard for truth, is without principle and utterly brazen, but he is very sensitive and vain, and he has had several blows recently; whole Mexican press attacked him violently after his speech accusing "imperialistic" interests in U.S. of sending arms to aid Sinarquists in Mexico; then came disavowal of what he had said by...

Scope and Contents Had agreed with Department advisable to suspend deliveries of certain military materials to Mexico following shooting by troops of peaceful demonstrators at León until it was clear what turn events would take; Mexican Government has however denounced the shooting and is taking proper measures to bring those responsible to justice; Ministry of Defense has issued orders that troops are not to intervene in political or electoral matters nor in local disorders without previous authority from...

Scope and Contents [Eduardo] Suárez, Minister of Finance, called at Embassy yesterday; said he was leaving that evening for New York to discuss with bondholders' committee final arrangements with respect to National Railway debt; has some reserves about Suárez, but recognizes that he has brought about a settlement of Mexico's external debt and done much to reestablish Mexico's credit abroad; doubts he would have accomplished this without insistence of President Avila Camacho; he brought up question of new...

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2 copies. Allocation of airplanes to Mexico has been approved; was informed Mexico would not purchase planes during current year through Surplus Property channels; understands U.S. planes left in Mexico not being used; wonders why Mexico taking this stand.

Scope and Contents Enclosure: See No. 1768. Mexican Government wishes to collaborate in defense program but for budgetary reasons does not intend to develop considerable air force; in order to get uniform equipment, training, and organization of air force in other American Republics U.S. must supply the material and equipment at little cost; to continue quibbling about price defeats purpose; thinks Mexican Government prepared to receive planes if nominal value placed on them; sending copy of letter from Gen....

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According to telephone conversation with Carrigan this morning, Army now states 14 planes left in Mexico at his, Messersmith's request; Department should make it clear in replying to Army that the initiative came from Gen. [Henry H.] Arnold; with reference to suggestion that planes left here be charged against the interim allocations of aircraft to Mexico, Mexicans were told planes would be left here under certain conditions, and those conditions must be carried through.

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In Spanish. In four years in Mexico has noted progress in almost every field - agriculture, industry, education, and consequent improved living standards; in no field has there been greater progress than in the medical sciences and congratulates the association on what it has accomplished.

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English translation of preceding entry.

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Situation in Argentina has taken dangerous turn; Argentine Government tried to give every appearance of free and orderly election; perhaps every eligible voter had opportunity to vote, but the counting is apparently dishonest, and Peron now leading; afraid of repercussions in other American Republics, particularly in Mexico with its forthcoming election.

Scope and Contents Discussed Argentine situation with Foreign Minister [Francisco] Castillo Nájera yesterday; told him U.S. could not enter into defense agreement with Government still containing Nazi elements; U.S. asking other American Governments for comments on Blue Book [published revelation of Nazi influences in Argentine Government] and for attitude on defense agreement with Argentine; obvious that Castillo Najera agrees personally with U.S. viewpoint, but cannot say yet stand Mexican Government will...

Scope and Contents Talked with President Avila Camacho yesterday about Mexican workers needed in U.S. and asked him to remove limitations set by Mexican Government; President agreed; had not meant to bring up subject of Argentina at this meeting, but he brought up subject himself; he believes as soon as Perón is declared elected, other American nations have no other recourse than to recognize election as valid and try to get Argentina back into the community of American States; in his opinion, a continued...

Scope and Contents Enclosed with No. 1777. on April 2 after leaving conference hall to attend committee meeting, Senator [Dennis] Chavez stopped to talk to a reporter; after a few minutes, thinking Chavez might wish to break away, reminded him it was time for the meeting; in very offensive language he said he would be responsible for that, and following down hall, that he knew the State Department breed and didn't intend to be shoved around by them; was later told by another delegate that Chavez was penitent...

Scope and Contents Enclosure: See No. 1776. Meeting of American Republics in International Labor Office in progress in Mexico City; received Department's telegram for guidance and use in discussions with government, employer, and labor delegates from U.S.; assigned William K. Ailshie of Embassy staff to take care of arrangements for U.S. delegates; invited U.S. delegates to Embassy afternoon before opening meeting to brief them on aspects of Mexican situation which might interest them; all arrived except...