File No. 711.1216M/165.

The American Ambassador to the Secretary of State.


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.