Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 3, 1877

No. 214.
Mr. Fish to Mr. Foster.

Department of State,
Washington, December 20, 1876.

No. 357.]

Sir: Your dispatch No. 465 of the 28th ultimo has been received. It represents that the government of Porfirio Diaz had applied for a loan of $500,000, and had represented that $300,000 of the amount would be payable to this government in the course of next month. The exact sum payable will, however, depend upon the construction placed upon the fourth and sixth articles of the original convention of the 4th of July, 1868, and the second article of the convention for extending the functions of the umpire of the 29th of April last. According to one construction, the deduction from the amount awarded of Mexico’s share of the expenses of the joint commission might be distributed through the several periods at which payments are to be made by her, including that of the 31st of next month. Pursuant to another construction, Mexico would have the privilege of deducting the whole sum due to her on that account from her first payment.

I transmit a copy of a protocol, with an accompanying account of the expenses of the joint commission, signed by Mr. Mariscal and myself on the 14th instant. These papers have been framed with deliberation and care, and, as is believed, state fully and accurately all necessary particulars for a comprehension of the subject at a glance. The account shows that there is a balance of $57,499.01 in favor of Mexico. If, therefore, she should think proper to deduct this amount from the first installment payable to the United States, that sum would be correspondingly lessened. If, however, she should prefer to distribute the sum over the several periods at which the payments are to be made, the amount due from her on account of the first payment would be increased accordingly.

We are not indisposed to allow Mexico her option in this matter. The pecuniary amount of the difference between the one course and the other is to us at least comparatively unimportant.

We are not aware of the method which Mexico will adopt for making the payment. If, however, it should be offered in dollars at the city of Mexico, there would be more or less risk and expense in remitting that amount hither in specie. It is consequently preferable that the remittance should be in good bills either on the United States or on England.

It is not deemed necessary to send you a formal power to receive the payment, but if it should be made to you, and any questions should arise as to your authority, you may show this instruction as proof in the matter.

I am, &c.,

HAMILTON FISH.

[Inclosure.]

Protocol.

Whereas the commission for the adjustment of claims provided for by the convention between the United States and the Mexican Republic of the 4th of July, 1868, stipulates in its sixth article that the compensation to be paid to the umpire shall be determined by mutual consent at the close of the convention;

And whereas the said commission, though continued from time to time by subsequent conventions, has concluded its functions and come to a close;

And whereas the same article stipulates that the whole expenses of the commission, including contingent expenses, shall be defrayed by a ratable deduction on the amount of the sums awarded by that commission: Provided always, That such deduction shall not exceed five per cent, on the sums so awarded, the deficiency, if any, to be defrayed in moieties by the two governments:

Now, therefore, the undersigned, Hamilton Fish, Secretary of State, and Don Ignacio Mariscal, accredited to the Government of the United States as envoy extraordinary and minister plenipotentiary of the Mexican Republic, have this day met for a consideration of these subjects, and have determined that the compensation of the umpire aforesaid shall be at the rate of six thousand dollars a year. Consequently, deducting the advances made by each government to Dr. Lieber during the time of his service as umpire, there remains the sum of eighteen thousand five hundred and fifty dollars ($18,550) for compensation of the umpire, one-half payable by each government.

The advances and payments made to Dr. Lieber were six thousand one hundred and thirty-nine dollars and seventy-two cents ($6,139.72) paid by each government, in all twelve thousand two hundred and seventy-nine dollars and forty-four cents ($12,279.44).

The expenses of the commission contemplated in Article VI of the convention, including the contingent expenses, have amounted to one hundred and seventy-eight thousand seven hundred and thirty-eight dollars and forty-six cents ($178,738.46), equal to four per cent, and seventeen thousand nine hundred and ninety-two one hundred thousandths (4 17992/100000)of one per cent, on the total amount of awards on both sides.

The undersigned have also caused the account hereunto annexed to be stated, and have approved the same under their respective hands.

• HAMILTON FISH,
  Secretary of State.
• IGN’O MARISCAL.

Washington, December 14, 1876.

Statement of account of United States and Mexican Claims Commission.

awards and expenses of commission.

	Awards against Mexico:
I.	In Mexican gold dollars.	$3,296,055 18
II.	In U. S. gold coin	426,624 98
III.	In currency	402,942 04
		4,125,622 20	at a percentage of 4.17992, yields.	$172,447 75
	Awards against United States:
I.	In Mexican gold dollars.	50,528 57
II.	In U. S. gold coin	10,559 67
III.	In currency	89,410 17
		150,498 41	at a percentage of 4.17992, yields.	6,290 71
Total		4,276,120 61	at a percentage of 4.17992,yields.	178,738 46
Expenses of commission, one-half to be borne by each government				178,738 46
		Moiety of expenses		89,369 23
	Paid by Mexico:
Salary of commissioner from July 1,1869, to January 31, 1876, 6 years and 7 months, @ $4,500			$29,625 00
Salary of secretary from May 1, 1869, to December 31, 1876, 7 years and 6 months, @ $2,500			18,750 00
Umpire, Dr. Lieber, from September 6, 1869, to October l, 1872, @ $3,000		$6,139 72
Umpire, Sir Edward Thornton, from October 17, 1873, to November 20, 1876, 3 years and 1 month.		9,275 00
				15,414 72
	Total amount paid by Mexico			63,789 72
	Paid by United States:
For same services, same rates and time		63,789 72
Also joint contingent expenses		51,159 02
Total amount paid by United States			114,948 74
	Total amount of expenses paid as above			$178,738 46
	Moiety of same as above			89,369 23

HAMILTON FISH,
Secretary of State.

IGN’O MARISCAL.

balance of account.

From sheet No. 1. Award against United States	$150,498 41	at 4.17992%	$6,290 71
From sheet No. 1. Award against Mexico	4,125,622 20	at 4.17992%	172,447 75
	4,276,120 61	at 4.17992%	178,738 46
From sheet No. 1. Expenses paid by United States	114,948 74
From sheet No. 1. Expenses paid by Mexico	63,789 72	Total expenses	178,738 46

Account of the United States.

	Dr.	Cr.
To amount of percentage on award against Mexico	$172,447 75
By amount of disbursements on account of expenses		$114,948 74
Balance		57,499 01
	172,447 75	172,447 75
Balance against the United States	57,499 01

Account of Mexico.

	Dr.	Cr.
To amount of percentage on award against United States	$6,290 71
By amount of disbursements on account of expenses		$63,789 72
	57,499 01
	63,789 72	63,789 72
Balance in favor of Mexico		57,499 01

• HAMILTON FISH,
  Secretary of State.
• IGN’O MARISCAL.