411, VVILLIAM P. CLEMENTS, JR. GOVERNOR OFFICE OF THE GOVERNOR STATE CAPITOL AUSTIN, TEXAS 78711 MEMORANDUM TO THE GOVERNOR THRU: Hilary Doran FROM: Eddie Aurispa DATE: April 6, 1982 SUBJECT: PROPOSED PROJECT TO STIMULATE MEXICAN ECONOMY BY UTILIZING AMERICAN COMPANIES Mr. Logan Jones shared a copy of the attached project that was introduced last year under the auspices of a now defunct "Council for Economic Development." He is proposing that this project be considered under the umbrella of the State Department, U.S. Department of Commerce, Small Business Administration or other suitable Federal or State entity in conjunction with U.S. embassies in Mexico or Latin America. PERSONAL OBSERVATIONS The program, as outlined in Mr. Jones paper, seems to be cutite vtbJ.. As you have quite often said, "in order for Mexico to achieve its full economic Potential, the United States must provide them with the e and the t.2p1111_gy necessary to bring their economy up." Mr. Jones' outlined project calls for "credit" assistance by major manufacturers here in the United States to smail—husineasas in Mexico. This would generate the needed cash flow that is not available now outside of normal financial insti- tutions, but that can readily be made available by private conglomerates and large companies. In effect, the potential exists for increased productivity, employment, income, etc. on the Mexican side. This would accomplish what you have been saying, "If the incentive to come to the U.S. for jobs is not so great, the immigration question will resolve itself." The main drawback, at the moment, is that to be a workable idea, it must have the backing of big business in the U.S. (and by the attached letters of support for the idea from some of them, it is possible), the U.S. government, the Mexican government, and a sufficient number of entrepeneurs and small businessmen on the other side of the border. ERA:blh Attachments A1-44( to)4AA. NeAot 044J4 t4rtAie cfk S QiNg A#0e