File No. 711.1216M/165.

The American Ambassador to the Secretary of State.

[Telegram—Paraphrase.]

Replying to Department’s telegram of December 17. In order to cover legal formalities of the agreement President Diaz insists that [Page 551] the exchange of notes between the two Governments must take place before any further action can be taken; also that a representative of the company in whose name the work is to be done be designated to arrange the details of free entry of materials with the Mexican department of finance.

Wilson.