File No. 817.51/525.

The American Minister to the Secretary of State.


Your February 4. As far as current expenses are concerned, President Díaz approves the bankers proposal but he thinks they do not appreciate the need for prompt relief from the most pressing obligations, nor the strength of the influence brought to bear on the Assembly to oppose any plan not making funds immediately available.

Another plan has been proposed to the bankers, as follows: immediate purchase of the entire railroad for $2,000,000; after partial liquidation of the debt to the bankers, the balance to go toward satisfying the most of the Government’s creditors and perhaps toward partial payment of Mixed Commission awards (less than 2,000 pesos). This may prove more acceptable to the bankers than the plan set forth in my February 4.

Due to the present economical management, the net earnings of the railroad for January were more than $40,000 gold, breaking all records.