File No. 812.00/13384.

The Secretary of War to the Secretary of State.

[Extract.]

My Dear Mr. Secretary:* * * I had a consultation with the President this morning, as a result of which* * * the President requested me to ask the State Department to take action in the following particulars:

He desired to have you take up with the Mexican central government the question of exacting a further payment of duties on merchandise which has already gone through the customhouse while in our control and paid us the regular duties. I sent you today a communication from Vera Cruz relating to various matters like taxation, license fees and what not in which moneys have been paid to us while we were running the local government. It is thought that the central government should have this matter presented to it with a view of pointing out to them the desirability of their not exacting [Page 602] a further payment for these Same sums. The equity and fairness of not doing so, I feel, should be pointed out. The community has had the benefit not only of this but of a good deal of our own money, and there does not seem to be any propriety or equity in a further exaction in the way of paying twice.

There are in Vera Cruz, as we are advised, many so-called refugees, among them priests and nuns. We understand generally that they have come to Vera Cruz out of apprehension as to what might happen to them if they stayed wherever they previously were. While we are in control of Vera Cruz, of course, we would not permit any unwarranted or unjustified attack to be made upon them. We have, however, no responsibility with respect to their situation and treatment excepting while they are directly within our lines. The President feels that it would be very undesirable from every standpoint if the Mexican central authorities should countenance or permit any wanton assault or unjustifiable conduct with respect to these people, and he therefore feels that the State Department should take the matter up with the central government with a view of eliciting a statement of their policy concerning these people.

We cannot even approximate a date for evacuation until these matters have been disposed of.

There is another series of questions which you will have to determine and advise me of your decision, so that I may act accordingly. These relate to the financial affairs. For instance:

1st.
Shall we turn over to Carranza’s representative all of the customs moneys that we have on hand?
2d.
Shall we turn over any balance that we happen to have on hand in any of the accounts of the local administration?
3d.
What should we require from the representative of Carranza in the way of acknowledgment, or receipt, or audit, or voucher, or what not?
4th.
Should we at this time request that an auditor, or fiscal agent, or agency, be designated by Carranza, who can utilize the time between now and the evacuation in going over these accounts and certifying to their correctness, or what not?

In general, we would like to have any instructions, directions or suggestions from your Department as to anything, from the international standpoint, you desire to have observed or done.

Sincerely yours,

Lindley M. Garrison
.