ness for which he came to Mexico. Within 30 days after the investor arrives in Mexico he must obtain from the Secretaria de Gobernacion Form 14, which is for the registration of foreigners in Mexico.

Motor tourists.-The tourist taking his own automobile to Mexico must obtain a permit from the Mexican collector of customs (Administrador de Aduana) at the border place of entry covering the temporary importation of the car. This permit carries a 3-peso fee and is good for a period of 90 days. Written application should be made during the first 90-day period, to a border customs office or to the Directorate General of Customs (Direccion General de Aduanas), Mexico, D. F., giving make of the car, motor number, temporary permit number, location of issuing customs office, date granted and date of expiration (each of which counts 1 full day). The owner will be required to deposit at the customs office at the port of entry his driver's license or similar document, as well as the bill of sale or papers identifying him as the owner. It is advisable that automobile insurance protecting against liability for traffic accidents be obtained from a reputable Mexican company; or, when possible, a rider to the policy already carried should be procured from an insurance company in the United States. To avoid payment of the full import duties covering their automobiles, tourists are advised not to overstay the time limit allowed.

As regulations governing entry of foreigners into Mexico vary, those desiring to enter the country are advised to consult the nearest Mexican consul for the latest regulations.

ARRIVAL

Salesmen's Samples.-Unless rendered useless or of no commercial value, all samples, whether sent direct or accompanying a traveler, are subject to the corresponding import duties. For example, shoe samples are not dutiable if made unsalable by having holes punched in them.

Prior tariff classification by the Treasury Department may be obtained only by a person or firm already doing business in Mexico. Thus, the foreign company's agent, representative, or distributor in Mexico may obtain an official prior tariff classification by submitting a sample. On the reexportation of samples, when justified by documentary evidence (including a customs list of the articles obtained on payment of duty at time of entry), full drawback is allowed on duties paid for their "temporary importation."

Baggage.-General procedure is to have baggage inspected by Mexican customs agents at the border, though it may be sent in bond to Mexico City for inspection there. Baggage may be brought into Mexico within 1 year from date of the traveler's entry, provided he gives the proper notice to customs officials.

Upon arrival of additional baggage at destination, the traveler, in order to obtain delivery free of duty, must (a) identify himself at the customs office by means of his passport, (b) justify his entry and presence in Mexico, and (c) show his declaration concerning future arrival of baggage, issued by customs officers at port of entry. Railroads allow free transport of 50 kilograms (110 pounds) of baggage on each first-class ticket (in crossing the border this limit is 150 pounds, to conform with the practice of United States railroads); steamship companies, 200 pounds when first class and 100 pounds when second class; and air lines 20 kilograms (44 pounds). Excess-baggage rates are charged on weights above these amounts.

Advertising Matter.-All advertising matter-catalogs, calendars, and similar material-is subject to duty. Catalogs and advertising matter sent direct from the United States to the addressee are exempt from the requirement of the Law of Weights and Measures that all indications of weight, volume, etc., be expressed in the metric system.

SALES TERRITORIES

The larger cities of commercial importance in Mexico are considered good distributing centers. Among these are Mexico City, Monterrey, Guadalajara, Merida, Veracruz, Chihuahua, San Luis Potosí, and Mazatlan; while for more complete coverage, Torreon, Tampico, Guaymas, and Mexicali and other border points could be added.

For convenience, Mexico has been divided into three distribution regions: (a) The Gulf Coast, and the Pecific Coast south of Manzanillo; (b) Central, north of Mexico City; (c) Western, north of Manzanillo. Within these three main regions, sales territories (by States) are grouped about distribution centers. These sales zones or territories are summarized below.

GULF COAST, AND PACIFIC COAST SOUTH OF MANZANILLO

1. Merida.-Yucatan; Campeche; and territory of Quintana Roo.

2. Veracruz.-Chiapas; Tabasco; Veracruz, south of Tuxpan; and southern part of Oaxaca.

3. Tampico.-Veracruz, south to and including Tuxpan; north to and including Ciudad Victoria; west of foothills of Sierra Madre Mountains.

4. Monterrey.-Nuevo Leon; Tamaulipas, north of Ciudad Victoria ; Coahuila, except southwestern portion.

5. Mexico City.-Federal District, Mexico; Queretaro; Hidalgo; Tlaxcala; Morelos; Michoacan; Puebla; Guerrero; northwestern part of Oaxaca, including the city of Oaxaca, the capital.

CENTRAL, NORTH OF MEXICO CITY

6. Chihuahua.-Chihuahua.

7. Torreon-Durango.-Southwestern portion of Coahuila; northern and western Zacatecas; extreme northern part of Jalisco; Durango. 8. San Luis Potosi.-San Luis Potosi; Aguascalientes; Guanajuato.

WESTERN, NORTH OF MANZANILLO

9. Guadalajara.-Jalisco, except extreme northern part; Colima ; southern part of Zacatecas.

10. Mazatlan.

11. Guaymas-Nogales.-Sonora, less strip west of a line about 100 miles west of Nogales; southern half of Lower California.

12. Ensenada-Mexicali. Northern half of Lower California, and approximately 100 miles of Sonora west of Nogales.

Merida Sales Territory.-Includes the States of Yucatan and Campeche and the Territory of Quintana Roo. Merida (population about 95,015), the distribution center, is the fourth city in size in Mexico. The principal port is Progreso. The climate is tropical, with temperature range from 80° to 95° F. The altitude does not exceed 1,000 feet. Population of the area is about 500,000, a large proportion of which is Mayan Indians, living on henequen plantations or in small villages. Per capita income is low, and demand is confined largely to prime necessities. The well-to-do classes in Merida are accustomed to modern conveniences. The principal industry is cultivation of henequen, used to manufacture binder twine and other cordage. In the southern part of Yucatan the soil is suited to general agriculture; beans, corn, tobacco, and sugarcane are cultivated. In certain sections of the peninsula there are tracts of Spanish cedar and mahogany. Extraction of crude chicle for export is the leading activity in Campeche and Quintana Roo; lumbering follows in importance. Henequen cordage, bags, and alcoholic beverages are exported. There is a limited production (for local consumption) of flour, sugar, crackers, macaroni, chocolate, soft drinks, lard compounds, cigarettes, matches, soap, leather goods, clothing, tiles, furniture, galvanized ware, and nails. Principal imports are motor vehicles and accessories, chemicals, drugs, electrical supplies and equipment, hardware, machinery, paints and varnishes, paraffin, radios, and miscellaneous foodstuffs. A large proportion of foreign merchandise is supplied by Mexico City dealers. The principal export is sisal (henequen fiber), of which 1938 shipments from the port of Progreso totaled 280,519 bales (400 pounds each), as against 359,749 in 1937. The greater part is purchased by the United States. Other exports are binder twine, crude chicle, hides, shark products, skins, dyewood, and mahogany logs.

Veracruz Sales Territory.-Includes the States of Chiapas and Tabasco, the greater part of the State of Veracruz from Tuxpan south, and the southern part of Oaxaca; total area, about 84,000 square miles; population, approximately 2,650,000. The Atlantic and Pacific coastal climate is tropical; the hilly regions are temperate. The rainy season is in July, August, and September; average yearly rainfall, about 77 inches. The average yearly temperature in Veracruz is 77° F. The majority of the inhabitants can purchase only the necessities of life, but in the larger towns, persons of wealth and culture maintain a com

paratively high standard of living. Among the growing middle class there is an increasing demand for imported articles such as lower priced radios and other manufactures of nominal cost. Agriculture is the leading occupation, though manufacturing and the petroleum industry are of importance in the State of Veracruz. Leading crops are coffee, bananas, beans, maize, sugarcane, citrus fruit, pineapples, vanilla, and broom root. Manufactures include cotton and jute, petroleum products, sugar, beer, and cigars. Leading imports are motor vehicles, agricultural implements, machinery, electric refrigerators, radios, canned goods, drugs, cotton and woolen cloth, hardware, paints and varnishes, perfumes, wines and liquors. Principal exports include coffee, bananas, petroleum, petroleum products, broom root, vanilla, pineapples, mahogany logs.

This territory has three ports. Veracruz is the principal port; the others are Alvaro Obregon (Frontera) and Puerto Mexico (Coatzacoalcos). It is planned to complete the dredging of the Pacific port of Salina Cruz to free it from sand.

Veracruz is connected with Mexico City via Jalapa, capital of the State of Veracruz, by the Interoceanic Railway (narrow gage) and by the Mexican Railway via Orizaba and Cordoba.

Tampico Sales Territory.-From Tampico as a distribution center, it is possible to reach, in an area of about 25,000 square miles, much of the Gulf coast of Mexico extending 100 miles south to Tuxpan, and about 125 miles north and west to the foothills of the Sierra Madre Mountains. Although the greater part of this territory is in the Tropics, extreme heat and excessive rainfall are absent and the climate in general is mild. Mean annual rainfall is slightly under 40 inches, and threequarters of it occurs from June to the end of October. Mean annual temperature is 75° F. and maximum summer temperature rarely exceeds 95° F. The surface is flat and level along the coast, becomes undulating in the interior, and rises to the foothills. The only river of any size is the Panuco, which is navigable by small ocean-going vessels as far as Tampico, which is 7 miles from the Gulf. Small craft ply between Tampico and Tuxpan through inland waterways. Population of the territory is estimated at 200,000; that of Tampico, at 68,126 in 1930. The only other important city is Ciudad Victoria (population about 17,682), capital of the State of Tamaulipas. Purchasing power and living standards are comparatively higher than those in other sections of Mexico because of higher wages. Before expropriation of the petroleum properties in March 1938, the American population was estimated as 1,000.

The production, refining, and exportation of petroleum products is the principal industry of this area, which accounts for two-thirds to three-quarters of the production, refining, and exportation of petroleum in Mexico. Principal agricultural production comprises corn, wheat, beans, sugar, henequen, and fruit.

Since expropriation, the demand for imported merchandise by the wealthier class is stated to have declined. Principal imports are chemical products, food products, machinery, tools, parts, and miscellaneous manufactures of metal, motor vehicles and parts, and textiles. Leading exports are petroleum and petroleum products, food products, and minerals.

Tampico is connected over the system of the National Railways of Mexico by a line to Monterrey and one running to Sau Luis Potosi.

Monterrey Sales Territory.-Comprises the States of Nuevo Leon, Tamaulipas north of Ciudad Victoria, and Coahuila except the southwestern portion. Monterrey (population about 132,577), capital of the State of Nuevo Leon, lies in the mountains at an altitude of 1,624 feet. Distance from the border is 168 miles by rail and 146 miles by Pan American Highway. The climate is temperate; summers, however, are long and hot. Annual rainfall is 16 inches. It is a progressive industrial city, influenced by its nearness to the United States. Natural gas

is piped to Monterrey from Texas and northeastern Mexico. Demand for imported articles other than supplies and equipment for industries is confined to the wealthy and to the more prosperous among the middle class, as the majority of the people are farmers or laborers with comparatively low purchasing power. In 1938 there were listed in Monterrey 438 factories, representing an investment of 153,000,000 pesos, with 30,000 employees and a weekly pay roll of 730,500 pesos. Larger enterprises include the largest iron and steel plant in Mexico; two American-owned argentiferous lead smelters and refineries; breweries; and plants for the manufacture of glass articles, textiles (cotton and rayon), furniture, enamelware, pastries, cigarettes, shoes, incandescent lamps, bottle caps, brick and tile, celluloid goods, compressed gases, dressed ixtle fiber, galvanized iron sheets, matches, mineral water, paints and varnishes, paper products, shirts and work clothing, medicinals, and toilet preparations. Principal imports are industrial machinery, agricultural implements, general hardware, motor vehicles, iron and steel sheets, drugs, chemicals, lumber, metal pipes, electrical goods, office appliances and supplies, lubricating greases, and kraft paper. Principal exports are lead and silver; beer; beeswax; goat, kid, and wild-animal skins; cattle hides; dressed ixtle.

Monterrey is a railroad center on the National Railways line connecting Nuevo Laredo (on the northern border) with Mexico City; with the line running to Matamoros (opposite Brownsville, Tex.); with the lines to Tampico and to Saltillo; and has connections with virtually all railroad points in the Republic. It is on the Pan American Highway extending from Laredo, Tex., to Mexico City.

Piedras Negras (opposite Eagle Pass, Tex.), Nuevo Laredo (opposite Laredo, Tex.), and Matamoros (opposite Brownsville,