File No. 312.52/612.

The Spanish Ambassador to the Secretary of State.

My dear Mr. Secretary: Referring to the subject of the protection of the Water Supply Company at Mazatlan, on behalf of which you have already had the kindness to interpose your good offices with General Carranza, I beg to quote the text of a telegram I have received to-day from the Spanish Consular Agent at Mazatlan, which reads as follows:

June 4.

May 24 waterworks were expropriated, using force and without lawful requisites. Financial situation of Ayuntamiento is such that expropriation really means despoliation. On behalf of Spanish shareholders and bondholders I made protest together with English and American Consuls to the State Governor, who ordered suspension of decree. However, the company was despoiled of its property, its office being occupied by force and has not been restored yet.

I should esteem it a great favor if you would renew your representations to General Carranza in order to obtain the restoration of this property to its rightful owners.

Believe me [etc.]

Juan Riaño.