File No. 3172/85–86.

[Extract.]

No. 984.]

Sir: I inclose a copy and translation of the note from the foreign office, under date of the 31st ultimo, received to-day, upon which my telegram of this date was based.

I have [etc.],

D. E. Thompson.
[Inclosure—Translation.]

The Minister for Foreign Affairs to the American Ambassador.

Mr. Ambassador: I have the honor to reply to your excellency’s note No. 221, dated February 11 last and to say, by direction of the President of the Republic, that with reference to the first point mentioned in said note the Government can not permit the occupation of national territory unless the Government of the United States confers an equal right on the Government of this country for the occupation of American territory.

With respect to the second point I must say to your excellency that the California Development Co., the holder of the shares and authorized by the department of fomento to utilize the waters of the Colorado River, can not transfer its rights-to any foreign Government according to the stipulations of the contract.

[Page 539]

And in conclusion, in regard to the third point, the said company will receive from the Mexican Government such treatment as it is entitled to pursuant to the same contract.

The President of the Republic, considering the advantages of making the proper studies for the distribution of the waters of the Colorado River, thinks it advisable to accept the appointment of the commissioners, to the end that the two Governments may properly utilize, and with equal rights, the waters of the aforesaid river, respecting such rights as have been created up to this time with respect to the use of the waters, with the understanding that the work of the commissioners shall serve as a basis for both Governments to treat and decide the matter appropriately. To that end, and as soon as your excellency informs me of the appointment of the American commissioner, my Government will name the person to represent it for the work in question.

I avail [etc.],

Igno. Mariscal.