Enclosures: See No. 196. Transmitting a memorandum on the development of military sport in Germany; training of youth in the arts of war has been extended to embrace the S.A. and the S.S., the private army of the National Socialist Party, and other organizations such as Boy Scouts; movement a cause for alarm in other European nations; extreme nationalism prevails.
Believes Geist handled matter of [George] Rublee conversations well and prevented complete breakdown; Rublee a fine man, but views the refugee problem too personally; fears he is influenced by [Joseph] Cotton, who is not in sympathy with present administration and disapproves U.S. trade agreement program; [Myron C.] Taylor a much wiser and sounder man than Rublee and [Robert T.] Pell also a first-class man who understands viewpoint of Department; never expected anything to come out of conversations, but felt they had to be gone through with; it had to be made clear (1) that Rublee was negotiating for the Intergovernmental Committee and not for the U.S. Government, and (2) U.S. would make no bargains with the Germans; world has always been faced with migration problem; U.S. policy stiffening; no question about defense program going through; thinks there will be no trouble getting neutrality legislation revised; partisanship cannot enter into foreign policy; Geist was right in saying difficulty not so much that Germany and Italy are strong, but that forces against them not morally as strong as they should be; Russia also a formidable factor and should not be left out of consideration; cannot look forward to less troubled times; thinks Germany will go on with her program; heard that she has six motorized divisions near Dutch border; her next move will probably be rapid; Germany...
In view of Wright's Spanish interests can understand his wanting to be on hand, but if trip home dependent on Spanish developments, Wright may have long wait; doesn't think Mussolini intends withdrawing troops at present; surprised to hear Wright say he doesn't know of any Frenchman or American living in France who believes France will be involved in war this year; continued concessions by France and England will not satisfy Germany or Italy; position better understood now by England and France; doubts there will be further concessions; notes Wright's statement that in opinion of Americans living in France, but who have recently been in America, American press does not give true picture of European situation, but is painting it darkly; cannot agree; American press is really free press, and U.S. Government and U.S. public best informed in world; in France, and to a degree in England, press not properly informing public; asks if French public has been informed of the number of Germans going to Lybia and of the six motorized divisions in Germany near Dutch frontier; surprised that anyone should believe statement that U.S. press controlled by Jews; New York Times and Washington Post both Jewish owned, but both are correct and objective in reporting and in editorial policy; 95 percent of papers in U.S. owned and edited by non-Jews; disturbed by Wright's letter; hopes he will come home soon and get the feel of the situation; believes situation more critical now than in September of 1938.
Enclosed with No. 1179. Wiedemann former officer of German Navy; intelligent, of good appearance, has has better understanding of English and American attitude than most Germans; compared to leaders of German Government, he is a moderate or conservative, but he has confidence of Hitler, is an opportunist, and willing to carry through any instructions he gets, therefore dangerous; it is reported that his real mission is to direct activities of German agents in the West; Wiedemann will no doubt be very active among business and banking circles and will have plausible arguments; it is believed he has been furnished with names of business men and financiers in U.S. known to be out of sympathy with the Administration and opposed to U.S. trade agreements program; those in responsible positions on west coast should be aware of what he is trying to do, and not be taken in; it is reliably reported that Princess [Stephanie Richter] Hohenlohe [Waldenburg] is arriving in U.S. shortly and will work with Wiedemann; she is an attractive woman, but unprincipled and prepared to do anything for present German government; she should be watched.
Acknowledges Johnson's letter of Dec. 12 and thanks him for information on present membership of Joint Mexican-U.S. Defense Commission; defends Mexico against Johnson's accusation of being uncooperative; Mexican Government friendly to U.S. and would probably accede to any reasonable request of U.S., but must consider temper of Mexican population; reminds Johnson Mexico the only American country U.S. has taken territory from and has been at war with; nor can one dismiss the discrimination against Mexican Americans in southwestern U.S.; Mexico for years torn by internal disorders, but today she is united and orderly with stable government; Mexican leaders fear that U.S. armed forces in Mexico might precipitate a political crisis; Johnson has implied Mexico primarily interested in obtaining military and industrial equipment from U.S. to build up her own armed forces and national economy which is what every other American republic wishes to do; sees nothing inherently wrong in that; Mexico's contribution to war effort in supplying strategic materials most important being made by any American republic.
Marked inflationary tendency becoming evident in Mexico; because of U.S. purchase of metals and other strategic materials from Mexico, flow of money into Mexico has increased so that consumer has increased purchasing power, but fewer consumer goods available for purchase, which causes prices to rise; Mexican government conscious of problem, but taking no adequate steps to alleviate it; talked with Finance Minister [Eduardo] Su??rez, who stated only solution was increase of consumer goods deliveries from U.S.; if inflation continued, he said, it might become necessary to revalue the peso, which would increase cost of strategic materials U.S. was getting from Mexico; told him U.S. was following policy of strict equity in delivery of goods to other American countries and that because of war effort increase was impossible; suggested price controls as best remedy, but he wouldn't even discuss it; Eduardo Villase??or [Angeles] in address made recently in National School of Economy was highly critical of U.S. for not delivering larger quantities of materials to Mexico; speech had approval of Su??rez but not of Mexican Government in general; it had repercussions among Mexican people, many of whom hold U.S. responsible for high prices; was asked to make speech before National School of Economy two days after Villase??or's speech; although Messersmith's speech had been prepared three weeks earlier...
Joint U.S.-Mexican Committee meeting in Mexico City June 5-19; thinks principal emphasis by Mexicans will be on materials for Mexico; has read report prepared in [Christian M.] Ravndal's Division of the Department; report gives statistics on exports from U.S. to other American countries and indicates Mexico getting her fair share; but statistics don't tell whole story; for years Mexican economy such that she could not purchase needed materials and her lack of materials has been cumulative; Mexico has been 100 percent cooperative in supplying metals and other strategic materials for war effort, which might entitle her to preferred treatment; when Nelson Rockefeller was in Mexico, took him to call on President Avila Camacho; President told of efforts he was making to improve standard of living in Mexico.
Much disturbed by reports that consideration being given to withdrawing from Joint Mexican-U.S. Commission for Economic Cooperation; Commission performing useful service; fear that industrialization in Mexico may have adverse effect on U.S. markets unfounded; growing disillusionment in Mexico with regard to U.S. policy; many Mexicans already dismayed by Senate postponement of consideration of Water Treaty; for U.S. to withdraw from Commission would be another slap in the face.
Enclosure: See No. 1634. [Miguel] Henriquez Guzmán planning trip to Chile; Henriquez Guzmán personally friendly to U.S., and is well meaning, but not of particular intelligence or broad background; he is being pushed as candidate for Presidency by former Cárdenas supporters who are definitely unfriendly to U.S. and more inclined to Latin American cooperation than to cooperation with U.S.; trip to Chile undoubtedly engineered by [Oscar] Schnake, former Chilean Ambassador to Mexico, who left Mexico with a bad name; Henriquez Guzmán also associated with such radicals as [Vicente] Lombardo Toledano and with Russian Ambassador, [Constantine A.] Oumansky; well informed Mexicans believe trip engineered for two reasons, (1) to push Henriquez Guzmán into limelight as presidential candidate and (2) to give him opportunity to spread distrust of U.S. in Chile and other countries he will visit on the way; Oumansky would like to make trouble by getting Latin American countries into bloc against U.S.; whether Henriquez Guzmán will lend himself to these schemes is not certain, but presidential ambition may make him subordinate his views to those of his friends; suggests Chiefs of U.S. Missions in Chile and other countries on West coast of South America be alerted and instructed to inform themselves as discreetly as possible as to Henriquez Guzmán's activities; they should then report to Department.
Enclosure: See No. 1632. Transmitting herewith as requested in conversation this morning copy of memorandum prepared in State Department summarizing conversation between Attorney General R.W. Kenney of California and Messersmith on Mexican-U.S. Water Treaty; has no objection to Padilla showing memorandum to President Avila Camacho.
Parts of pp. 3 & 4 cropped. [Marcell William] Fodor called recently and reported that he will contribute to new financial magazine being founded in New York; magazine could not find sounder man in Central Europe; interested as to [Hermann] Goering's objective in going to Rome; probably wanted to know what London-Rome Gentleman's Agreement means; was told he also tried to persuade Mussolini to change his attitude on Austria so as to give Germany more latitude there, but found him adamant; Austro-German trade negotiations still incomplete; Austria determined not to finance increased trade at her own expense; Austria will probably have to make some concessions to satisfy Austrian agricultural elements and to prevent being accused of sabotaging the July 11 accord; new "cultural" organizations of so-called Nationalists and Nazis being formed in Austria; believes Chancellor is tolerating them, hoping if he gives them enough rope they will hang themselves; [Odo] Neust??dter-St??rmer, their leader will no doubt have to leave cabinet; [Eduard] Glaise-Horstenau likely to remain, since he is in Cabinet as part of July 11 agreement; Europe passed through major crisis during Dec. and early Jan.; Hitler would have provoked war had it not been for opposition of his Army and Navy...
Sixteen year old son of H. V. Kaltenborn, news editor for Columbia Broadcasting System, was walking with father, mother, and sister on Leipsiger Strasse in heart of Berlin when they saw a group of S.A. men marching down the street; stopped to look in shop window until procession passed; son suddenly seized from behind by civilian and struck in face; Kaltenborn did not report to police as he was fearful of leaving wife and daughter alone; since attacks upon Americans are continuing in spite of assurances by authorities they will be stopped, Department should consider warning Americans that they travel in Germany at their own risk.
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 Senator [Dennis] Chavez; was later informed he said "he was not going to take orders from the State Department"; no orders were given and other delegates said briefing was very helpful; Chavez a frequent visitor to Mexico and contacts with him have always been pleasant; cannot understand present attitude; he gave interview to some Mexico City correspondents in which he spoke of the discrimination against Mexicans in U.S. which as U.S. Government delegate was tactless; Ailshie also had unpleasant experience with him at meeting, as attached memorandum shows.
Gives resumé of Argentine events since Perón elected President, in what all now recognize as honest election; Perón has declared his intention of governing constitutionally, and so far has; U.S. relations with Argentina normal except that in accord with statement made by former Secretary Byrnes on April 8, 1946, U.S. will not sit down at defense meeting with Argentina until Argentina has met her commitments under the Acts of Mexico City; first act of new Argentine Congress was to ratify those acts; adequate action has been taken in matter of Axis schools and institutions; progress has been made in the matter of enemy property and enemy aliens; believes Argentina has gone 75 percent of way toward compliance - more than many other American republics - and expects to go the other 25 percent; unjust to set criteria of fulfillment of commitments for Argentina not applied to other countries; U.S. is committed under acts of Mexico City to sit down in defense meeting in Rio to formulate defense pact; there is general agreement such a pact would be ineffective without Argentine participation; other American republics eager for meeting and are concerned over its continued postponement; failure to compose situation will force Argentina to seek friendships with other nations...
Copy enclosed with No. 1858. Feeling much better; treatment prescribed by New York doctors very helpful; one of most distressing features of whole problem with respect to Argentina is unhappy publicity appearing in U.S. press; clippings from Washington Post and Washington Star covering articles by John Herling and sent by Littell are good examples; Herling came to Buenos Aires in January with A.F. of L. delegation; he described himself to member of Embassy staff as free lance writer; seems to operate on fringes of labor activity; his article in Washington Post headed "Argentina's new 'hero', Ambassador Messersmith, finds himself in center of organized anti-Braden campaign" is full of misinformation and inaccuracies; his account of the flattering demonstration with which Messersmith was greeted on return from Washington was completely incorrect; was met by President and Mrs. Perón and Foreign Minister as friendly gesture but there was no demonstration; what he says about labor delegation just as inaccurate; article in Evening Star entitled "Perón's Five-Year Plan" somewhat more factual but when he speaks of project being for a combined military and social state, he is projecting his own ideas into plans of Argentine Government; visit of labor delegation most unfortunate; they should never have come; they had poor leadership in person of [Cerafino] Romualdi...
Soon after going to Antwerp in 1919 was placed in charge of U.S. Consulate General which was largest and in many ways most important one there; Belgian people very grateful for all U.S. had done to help during war and on any public occasion pushed Messersmith forward and reserved place for him in first row; being far younger than colleagues from other countries and wishing to avoid any feeling, usually found place in second row; noticed that [Martyn Pierre Cecil] Gurney, British Consul General was always in first row whether seat was reserved for him or not and tried to pull Messersmith into front row beside him; at one ceremony in the cathedral, he was so insistent that to avoid scene, Messersmith moved up and sat with him, but on leaving cathedral asked him not to create such a scene again, whereupon he delivered lecture on protocol.
Enclosed with No. 136. At Goering's invitation, Messersmith called on him at Air Ministry on April 4; before accepting invitation, emphasized that visit was personal and unofficial and must not be publicized; was cordially received; Goering asked about U.S. Diplomatic and Consular Service; was surprised to learn many men made it a lifetime career; had supposed they were removed from office with every change of government; mentioned anti-German propaganda in U.S.; Messersmith replied that American press, unlike German, was not controlled by government, and correspondents substantiated stories they sent out of Germany; Goering felt U.S. placed too much emphasis on problems of individuals and ignored fact that Germany had just come through a bloodless revolution; Messersmith agreed that Americans were concerned about individuals, but what concerned them more was the wholesale persecution of the Jews; Goering asked if there wasn't discrimination against Jews in U.S., and Messersmith replied that there was some social discrimination, but in business, professions, and before the law, Jews enjoyed same rights and privileges as other citizens; Messersmith mentioned removal of Jewish judges in Germany and felt that Americans would hesitate to invest money in Germany if they thought they could not get justice in the courts; Goering asked what Germany should do...
[Carlos] Saladrigas in Mexico on mission to sign agreement on mutual Cuban-Mexican patrol measures; he is in daily contact by telephone with President Batista, who urges him to talk to Mexican authorities regarding supplying Cuba with oil; Saladrigas reports Cuban situation critical; Cuba receiving only 40 percent of her petroleum needs from U.S.; having no coal, she must depend upon oil for fuel for industry, for transport, and for agricultural machinery; increase in unemployment; disturbed political situation; whole Cabinet resigned; told Saladrigas Mexico could probably supply Cuba with oil and would no doubt be glad to, but problem is one of transport; Messersmith realizes Cuba is no longer his problem, and is sure [Spruille] Braden is keeping Department informed, but feels he should express his conviction that U.S. could supply the comparatively small amount of oil needed by Cuba and ship it in the same convoys already going to Cuba, with only a couple of additional tankers; has suggested Saladrigas go to Washington and talk to Welles.
After reading articles in yesterday's papers reporting alleged statements of President Avila Camacho, Ezequiel Padilla called on President and pointed out to him the repercussions publication of such alleged remarks would have; President authorized Padilla to make corrective statement, but after reflection Padilla decided correction would be much better coming from President himself; Padilla suggested that Messersmith call on President early next week and express his concern over the statements; must recognize that President, while a wise and sound man, and very friendly to U.S., is being subjected to extraordinary pressures from those most unfriendly to U.S.; fact that Presidential campaign is getting under way aggravates situation; extreme nationalists determined to eliminate from Government those in favor of collaboration with U.S.; extreme elements of right and left will do everything possible to keep Padilla from heading delegation to San Francisco; planning to see President early next week; telegram from Department authorizing expression of concern will help.
Reports on conversation with [Juan] Perón shortly after arrival in Buenos Aires in May 1946 and before Perón's inauguration as President; discussed what Argentina must do to comply with her commitments under the Acts of Chapultepec in order that she might participate in Rio Conference to implement those acts; Perón agreed that Acts of Chapultepec must be ratified by Argentine Congress and that appropriate action should be taken in matter of enemy property and enemy aliens and assured Messersmith such action would be taken, but that there were many difficulties; he mentioned specifically lack of able people in Government; he had tried to enlist some able men from the opposition for his cabinet, but they had refused; obvious that Perón was sincere in his wish to better relations with U.S. and to collaborate with other American countries; he was much concerned about spread of Communism in the Americas.