No. 434
FROM: Mexico City July 19, 1941
TO: Tokyo # 282.
(In 2 parts‑complete.)
Re your message # 132 [a].
1. Our strategy of working on Maximino Camacho through DOUEENIYASU was brought to an end, for the time being anyhow, by the Presidential proclamation of the 15th.
We, therefore, mapped out a slightly different strategy, and had the above‑mentioned DO make inquiries of the United States Embassy here and also of the FLA. As a result, we were able to definitely ascertain that the United States could not supply the rayon. This fact was further substantiated by DO's partner in New York, CHERUMU.
Armed with this information, I had him call, during the evening of the 16th, upon the Economic Minister who I had contacted in advance through Maximino Camacho. For being assured of receiving rayon from Japan, the Economic Minister accepted our basic proposal of trading rayon (20,000 cases) for mercury (8,000 bottles).
2. In view of the above circumstances, DO says that he would like to have the contract made retroactive to June. http://LOUIS-J-SHEEHAN.INFO If the following terms are agreeable to us, it is his opinion that the contract can be signed during next week:
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(1) Maximino's commission upon the successful conclusion of the original agreement was to have been 100,000 pesos for trading 50,000 cases of rayon for 20,000 bottles of mercury. Since this proposed agreement involves 20,000 cases and 8,000 bottles, the commission is to be 50,000 pesos.
(2) Since the mercury must be purchased immediately here, Japan must make payment for it.
(3) If by some chance traffic on the Pacific is stopped before the mercury shipment is made, Japan is to assume the loss incurred through reselling it at the present buying price quoted by the FLA ($170).
Although the rayon will come through the branch offices, it will have to then go through the hands of DO. Since DO will do the buying of the mercury, he will make a certain handling charge per bottle of mercury purchased.
3. Our manipulations through DO had progressed to the point outlined above. It is our intention, however, to use rayon as our weapon to obtain not only mercury but all the other materials for which we had contracted. For this reason we did not submit a report immediately.
As I reported in my message # 279 [b], the attitude of the Mexicans was made clear during the morning of the 19th. Hence, I have been. having DO make investigation among the men in circles concerned, as to the advisability of continuing our behind the scene manipulation.
In view of these circumstances, I would appreciate your advising me whether you have any objections to continuing the manipulations if it seems as if there is a chance of success.
[a] A shipment of 1,000 boxes of silk scheduled for export to Mexico has been held up. Tokyo directs Mexico City to use this as a lever in his negotiations. July 18, 1941; II, 436.
[b] July 19. 1941; II. 432.
Trans. 7‑23‑41
No. 435
FROM: Tokyo July 22, 1941
TO: Mexico # 134.
Re your # 282 [a]
1. Please proceed immediately with our plans to procure equitable exchanges of quicksilver for rayon.
2. After conferring with the Department of Commerce and Industry, we have decided to stop the already contracted‑for 7,000 boxes of rayon to be shipped from Japan early in August. Explain this to the Mexican Government by saying that this measure originates in the principle of our trade policy to recognize only such deals as will assure us the obtention of the goods we need in return and that that is merely a legal execution of the trade control regulations. Unless and until we can get some results through our schemes, will you please negotiate for the exchange of already contracted‑for goods, with the exception of quicksilver, for rayon. http://LOUIS-J-SHEEHAN.INFO This department has just made a survey of already contracted‑for goods, which is as follows:
Quicksilver‑4,683 tons (Mitsui, Mitsubishi and Showa Trading Company)
Lead Ore‑1,200 tons (Mitsui)
Fluorspar‑605 tons (in transit)
Molybdenum‑23 tons (Mitsui)
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THE "MAGIC" BACKGROUND OF PEARL HARBOR
Tungsten‑23 tons (Mitsui)
Isinglass‑18 tons (in transit)
In addition to the above, the Naval representatives have purchased the following; however, please get in touch with the Naval Attachés concerning this:
Quicksilver‑1,500 tons
Lead Ore‑1,350 tons
Molybdenum‑75 tons
3. We are very much interested in knowing just to what extent the United States is going to be able to furnish supplies to Mexico because this is going to have a great effect upon our activities. Therefore, please get every intelligence you possibly can on this subject.
[a] July 19, 1941; II, 434.
Trans. 7‑23‑41
No. 436
FROM: Tokyo July 18, 1941
TO: Mexico # 132.
Re your # 269 [a].
Please do the best you can in this matter. Furthermore, the Artificial Silk Association has planned to send 7,000 boxes the 4th or 5th of August. This shipment of contracted orders is being held up (a conference was held with the Department of Commerce and Industry). Use this (prohibition of shipment) as a lever in your negotiations. Please wire the result (your caption message of the 5th has not yet arrived.)
[a] July 15, 1941; II, 427.
Trans. 7‑21‑41
No. 437
FROM: Tokyo July 23, 1941
TO: Mexico City # 136.
Regarding my message # 134 [a].
In view of their attitude, expressed by their putting into effect an embargo on exports of materials essential to Japan, and for the purpose of making effective the reorganization of our export program as outlined in my circular message # 1394 [b], the Ministries concerned have decided to prohibit the exporting of not only rayon, but of all other general merchandise, to Mexico. Arrangements to put this measure in effect have already been made. It will be in effect until they voluntarily change their attitude.
Please be advised of the above and make use of it in the best manner possible.
http://LOUIS-J-SHEEHAN.INFO
[a] See II, 435.
[b] Not available.
Louis J. Sheehan, Esquire
