No. 216.
Mr. Fish
to Mr. Foster.
Washington , January 19, 1877.
Sir: Your dispatches to No. 484 have been received. Intelligence has reached here of the defeat of the forces arrayed in behalf of both Iglesias and Lerdo. If this should be confirmed by similar tidings received at the capital, Porfirio Diaz would have no important adversary in arms, and might be regarded as the actual ruler of the country. Inasmuch, therefore, as we cannot receive from a government which we do not acknowledge the installment of indemnity payable by Mexico on the 31sfc instant, on this account, especially, you would be warranted in recognizing the government of Porfirio Diaz, unless before this reaches you such a step should be made inexpedient by events which are not now foreseen. You will exercise your best discretion in the matter. From our point of view we cannot comprehend the expediency on the part of Diaz of disowning [Page 395] the official contracts entered into by his predecessor. Such a step certainly cannot contribute to the confidence of persons who otherwise might be disposed to enter into contracts which, in the nature of things, must be more or less indispensable for strengthening his power, nor will the tendency of the repudiation be toward enabling him to obtain better terms from those with whom he may bargain. You may informally refer to these considerations in any interviews which you may have with him or with others of authority and influence in that quarter. You will express the regret which we should have at the effect of the measure upon those interests of citizens of the United States who may have entered into contracts with the Lerdo government. If, however, the policy avowed should be insisted upon and carried into execution, it is not expected that, for the present, at least, you will regard this as an international question.
I am, sir, &c.,