File No. 412.11T54/205.

The American Ambassador to the Secretary of State.

[Telegram—Paraphrase.]

A long interview, based on memoranda of conversations in Washington, was had today by Mr. Schuyler with Minister for Foreign Affairs, who had just come from the President.

The Minister stated that he would shortly send a note declining arbitration in the Tlahualilo case not only because such arbitration was impracticable on basis of protocol but because the Mexican Government and the company would come to an amicable settlement. He would later in a separate communication submit offer of a settlement to the Department, which had agreed to be judge of its justness. He added that Mr. Potter’s ideas of settlement could not be entertained [Page 935] for a moment: that he was evasive and insincere to the highest degree, and it was evident that he only desired to gain time. Mr. Schuyler does not think that there is any possibility of the offer being acceptable either to the Department or the company, although he impressed upon the Minister the necessity of prompt settlement of case in view of the attitude he had taken with the Secretary of State.

The Minister thought the Colorado River convention would soon be satisfactorily negotiated.

Regarding Alamo cases he threw up his hands, exclaiming: “Oh, those cases again! I don’t know what further can be done about this.”

He said concerning Chamizal matter that it was being taken up through Mexican Embassy and could be disregarded here, and that nothing more could be done regarding border cases at present.

Wilson.