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66-5_10 - 1950-02-03

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DEPARTMENT OF STATE Memorandum of Conversation

Date: February 3, 1950

Subject: Call of Senator Morse on the Secretary

Participants: The Secretary Assistant Secretary McFall Senator Wayne Morse of Oregon Mr. Wilfred Malenbaum of ED Mr. Thomas C. Mann of MID

Copies to: S/S; Mr. McFall; Mr. Malenbaum; MID \(Mexican Branch\); ARA \(2\); DRA \(thru ARA-Miss Grant\); ARA Board

Senator Morse called at his request and stated that he wished to inform me of certain views which he had formed during his recent visit to Mexico as the guest of the Mexican Government, being the same views which he had expressed to the President on the preceding Friday. The Senator said that he had gone to Mexico in a private capacity and had spoken to President Alemán in an unofficial capacity. He said that Pemex was an efficient operation and that he wished some U.S. Government agencies were as efficient; in this connection he referred to the progress which had been made in building roads, etc., the inference being that this process was the result of Pemex operations.

The Senator also said that he had read the Department's aide memoire of July 6 and considered that the formula set out in this document was unfair, referring specifically to the paragraph concerning the collection of claims. On this point Mr. Mann stated that the question of the Sabalo claim was no longer related to the question of a petroleum loan to Mexico.

The Senator also said that he had informed President Alemán that in his opinion Mexico should create a better climate for private enterprise in Mexico, the inference being that he intended this statement to apply to the petroleum industry as well as other fields. In the course of the conversation the Senator stated that he had no intention of making political capital of the matter and that he was merely informing the Department of the opinions which he formed while in Mexico.

The Senator said that the President had stated that he had discussed with President Alemán the question of a loan for distribution and refining facilities and that, in his discussion with President Alemán, no reference had been made to conditions.

I stated that I would be glad to have the Senator discuss the Pemex question with Assistant Secretary McFall and other interested Department officers. The Senator indicated that he would be glad to have such a discussion when he returned to Washington after February 14.

ARA:MID:TCMann:dc