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September 24, 1976 - Ford, President-Elect of Mexico Jose Lopez Portillo
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1553543
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September 24, 1976 - Ford, President-Elect of Mexico Jose Lopez Portillo
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Memoranda of Conversations (Nixon and Ford Administrations)
Ford Administration Memoranda of Conversations
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Mexico
Agriculture
Emigration and immigration
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Migrant labor
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1976-09-24
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1976
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1976
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MEMORANDUM
THE WHITE HOUSE
WASHINGTON
DECLASSIFIED
E.O. 12958, Sec. 3.5
SECRET/NODIS/XGDS
NSC Memo, 11/24/98, State Dept. Guidelines
By KBH # NARA, Date 3/22/00
MEMORANDUM OF CONVERSATION
PARTICIPANTS:
President Ford
Jose Lopez Portillo, President-Elect of Mexico
Charles W. Robinson, Acting Secretary of State
Brent Scowcroft, Assistant to the President
for National Security Affairs
Amb. Jose Juan deOlliqui, Mexican Ambassador
Amb. John J. Jova, U.S. Ambassador to Mexico
Anthony Hervas, OPR/LS (Interpreter)
Enrique Loaeza (Interpreter)
DATE AND TIME:
Friday, September 24, 1976
2:58 - 4:10 p.m.
FUND
&
PLACE:
The Oval Office
The White House
GERALD
LIBRARY
Lopez: Aren't you feeling tired?
The President: It's a letdown, a bit. I spoke before a Polish-American
group; I went to an Italian market. So that was a lift. I am looking forward
to tonight.
Lopez: I was very pleased at the opportunity to meet with you and introduce
my family.
The President: My son Jack will join us.
Let me congratulate you on your election. I look forward to working
with you in the months and years ahead. I know we can build on our good
bilateral relations.
Lopez: That is what I expect and hope, especially when Mexico is entering
a peri od of turbulence. There is a sense of fortune in the people. We have
CLASSIFIED BY Henry A. Kissinger
SECRET/NODIS/XGDS
EXEMPT FROM GENERAL DECLASSIFICATION
SCHEDULE OF EXECUTIVE ORDER 11652
EXEMPTION CATEGORY 5 (B) (1, 3)
AUTOMATICALLY DECLASSIFIED ON Imp. to det.
File scanned from the National Security Adviser's Memoranda of Conversation Collection at the Gerald R. Ford Presidential Library
SEGRET/NODIS/XGDS
-2-
to build a sense of hope and trust. It will take much work and the main
element is the United States. Much of our economic problems stem
from the U.S. economy. You are our most important customer and
any change is of great consequence to us.
Fortunately, we have made economic arrangements with you and
the IMF to carry us over this difficult period.
The President: We are very pleased to be of assistance.
Lopez: Your help has already had its favorable impact. The rest is up
to us. But there is one thing. Our trade balance with the United States
is very unfavorable. It is accidental, but it is legitimate on our side to
seek to restore the balance. We think there are remedies. We have had
conversations with the Secretaries of Agriculture and Commerce, and the
Congress.
Let me give an example. We could or ganize an agriculture committee
of both countries in areas where it makes sense. This would mean dividing
the market equitably, and it would avoid labor migration to the United States.
Strawberry cultivation is an example. It is labor-intensive and we have
excess labor. If we divided it up, we could grow them in Mexico and our
workers wouldn't have to come into the United States. We know that is one
of the most serious problems between us. That wouldn't solve the problem,
but it could relieve it.
The President: Are you shipping any new oil into the United States?
Lopez: As I remember, some goes to the U.S. and some to Israel. We
don't sell to Central America because of an agreement with Venezuela.
We sell a little to Brazil. We have an open market and we sell to who ever
wants it.
The President: Is your production up?
Lopez: Yes, until 1973 we had to import crude oil. We had the bad policy
of subsidizing energy, so our investment was low. I turned this around
and in 1974 we were self-sufficient and in 1975 we started to export. We
are self-sufficient in oil, but even though I am President I can't really find
out how much.. There are old hands in Pemex who think the oil should stay
FORD
SECRET/NODIS/XGDS
&
GERALD
LIBRARY
SEGRET/NODIS/XGDS
-3-
in the ground for the future. I will straighten it out, and I will have
someone at my side to give me the information the old hands and technicians
want to keep from me.
I understand we have 6-7 billion barrels, and with secondary recovery
there would be much more -- maybe 11-12 billion barrels of proven reserves.
For unproven reserves, the information is more general -- probably 50-100
billion barrels. It is hard to make a policy without the information. It is
essential to outline our export policy and refining capability.
The President: It should help your foreign earnings.
Lopez: Most of our exports are raw materials. That is why I am emphasizing
the countryside and energy. We are also prospecting for mining. We have
found lots of minerals. All this has to be developed if we can find the
financing.
Let me describe a trap in our financing. Our trade deterioration was
obvious recently. One of the ways to increase exports was oil, but we
couldn't increase production because the import of materials overloaded
the economy. We have to reorganize our economy between prices, wages,
production, exports, imports, taxes, expenditures, etc. It is like squaring
the circle.
There are already 63 million Mexicans; when I leave there will be
70 million.
FORD
&
[Described how optimum a six-year term is. ]
GERALD
LIBRARY
[Some discussion about campaigning. ]
The President: Are there any particular problems we should discuss?
Lopez: Yes, I think the terms of trade is the most serious, but there are
others.
One is non-documented workers whose situation and treatment in the
United States worries us very much. Their non-legal status hurts them
because they can't be a contractual situation. We would like to avoid this
problem, but when it arises, we would like to adhere to the migratory prin-
ciples of the ILO. That, of course, has its own sanctions. These people
have no empathy for the U.S. and the U.S. has none for them. I know the
solution is job creation in Mexico.
SEGRET/NODIS/XGDS
SECRET/NODIS/XGDS
-4-
The President: As I recall, we used to have an agreement for Mexicans
to come to the U.S. under contract. I thought that was a good program.
There were controls, but they had guaranteed wages and conditions.
Unfortunately, the Congress ended that program under pressure and the
problem is bad now. Echeverria and I discussed the prospect of the study
maybe to revive that program. I generally favor that approach, though
I don't know where the study is.
Lopez: Unfortunately, stop-gaps like that don't eliminate the problem.
It helps, but there is always a black market problem. Some of your
farmers demand cheap labor. There is plenty in Mexico and there is the
problem.
The only real solution to this, and other problems -- like drugs -
is jobs in Mexico. That in turn is a matter of markets -- supply and demand.
I visited during my campaign the province that is most involved in drugs. Now
many of the people there are addicts. What used to be an economic problem
has now become a social problem. As we eradicate the traffic, the price
rises and the traffic is more lucrative.
The President: We have had wonderful cooperation, and I hope it will continue.
Lopez: To the extent we solve the drug problem, we create another
American prisoners in our jails, almost all of them because of drugs.
The President: How about the idea of exchanging prisoners?
Lopez: There are some problems, including the constitutional ones, but
they will be overcome. I think we can solve the problem to whatever degree
you wish.
Robinson: [Explains where the negotiations are]. We have no interest in
having American prisoners and Mexico has no interest in having them.
Lopez: I would be happy to solve this if it hasn't been solved by December.
Then there is the problem of border industries. If you could do
something about the amount of gifts which can be brought in.
The President: But that is set by law.
FORD
?
SEGRET/NODIS/XGDS
BERALD
LIBRARY
SEGRET/NODIS/XGDS
-5-
Lopez: But it had been $200 until 1966 and then it went to $100.
The President: And $100 then would buy more than $200 now.
Lopez: Of course, I hope you can do something; that will help me a lot.
Also you could let our export agriculture have better entry.
[More discussion].
The President: I hope your people will talk to State and Agriculture to do
something about it.
What percentage of your exports go to the United States?
Lopez: Between 65 and 70%.
The President: Have they been going up or going down?
Lopez: Down just an insignificant amount.
Without being rhetorical, I think my Administration will lay down
the basis for the 21st century. If I fail, the country will fail and the country
will go the left, then to the right, and democracy will fail.
The President: We certainly want democracy in Mexico. We will certainly
do everything we can to help. You take over on December 1st?
Lopez: Yes. I am now preparing my government plan. I thank you a great
deal for your expressions of support. In Latin America, there are different
methods. We seek justice through liberty. Cuba eliminated liberty to seek
justice. Uruguay seeks justice then liberty with order. Right now there
are only four democratic-elected Presidents in Latin America.
I know you are very busy, but I want to thank you. I hope it is not
our last contact and our hopes are with you.
The President: I look forward to having a state dinner soon for you,
with me as the host.
SECRET/NODIS/XGDS
P/hopez Portillo
258-4:10 pm
Friday 4Syt is
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FORD LIBRARY & GERALD
DECLASSIFIED
E.O. 12958, Sec. 3.5
NSC Memo, 11/24/98, State Dept. Guidelines
By KBH NARA, Date 3/22/00
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GERALD LIBRARY R FORD
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GERALO P. FORD LIBRARY
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FORD & LIBRARY OF
There is fluity in WIX. & Chm in I suh.
The only unl polntion to this & others
drays- is justs in Infice. That in turn
is a mattleg enarhels- euggly & lemand
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hasn't bvn by Dr.
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which can be Grought in
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FORD
&
GERALD
LIBRARY
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of repport. In LA there ohl lif withols
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my breath to ceek justice. Uniquey who
justice the lib w/ order. Reyat how
the are only 4 demo. elected Pers in
L.A.
I how your very bruzy but 9 wat to thank
FORD & LIBRARY GERALD
your I hope it art L lost intert ( he he
hopes it w/yon.
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I look forward to state cloum soon
for your wf we asc best,
GERALD 5 FORD