File No. 312.52/271a.
The Secretary of State to Consul Hamm.
Washington, May 14, 1914.
The Spanish Ambassador called to-day to say that the Spanish residents of Torreon had been trying to secure an adjustment of the tax on or contribution from cotton which they held. I think it was taken by Constitutionalists. They are anxious to have the matter settled so that they can sell their cotton. I believe that they have offered to pay $15 a bale which, putting the cotton at $60 a bale, is 25 per cent. tax. General Carranza, we are informed, has asked for 50 per cent or $30 per bale.
Please bring the matter to the attention of General Carranza and urge as liberal settlement as can be effected. In view of the increasing interest that foreign nations are taking in what the Constitutionalists do, it is, we believe, the part of wisdom that they act with such moderation as to avoid such criticism.
Also bring to the attention of General Carranza the fact that there is a large amount of foreign property in the neighborhood of Tampico. The Netherlands Minister called to-day in regard to a well called the Corona in the Panuco District. The British also have large property interests there and the Americans more probably than any other nationality. Say to him that we regard this as an opportunity for him to make a favorable impression by the moderation and reasonableness of the contributions asked, also explain to him that it would greatly embarrass us if anything were attempted that could be fairly regarded as extortionate.