File No. 412.00/29.

The American Chargé d’Affaires to the Secretary of State.

[Telegram—Paraphrase.]

471. Department’s August 25. No claim, to my knowledge, has been paid since the Madero revolution, in which the Government admitted liability. Several have, however, been paid with the understanding that such payment should not be held as a precedent and that the same should be considered gratuitous. The Covadonga indemnity which amounted to 400,000 marks was made the subject of direct negotiations between the German Legation here and the Mexican Government. It was paid some time during the year 1912, the German Minister threatening to make the facts of the case public property through the European press; and I was credibly informed at the time that in the event of Mexico’s refusal he would have recommended the sending of a warship to Vera Cruz to enforce the demands of his Government. Other claims paid by this Government have been generally negotiated through some firm of [Page 951] lawyers directly [omission in transmission] the Government. I do not know at the present moment another case where a diplomatic mission has secured payment of an indemnity to its nationals excepting Covadonga.

Nelson O’Shaughnessy.