File No. 812.00/18039
Special Agent Carothers to the Secretary of State
The situation appears critical and deadlock certain. From reliable source am informed that Obregon made the statement to his officers that one mile or five hundred is the same thing in so far as affecting the sovereignty of Government of Mexico and that our troops must leave the country entirely. Border sentiment almost unanimous against withdrawal. General Gutierrez and Calles have returned to their posts and I anticipate immediate action against American troops upon termination of conferences if the decision is against withdrawal. They undoubtedly insist on complete withdrawal or fight. Reports received here or rebel activities in Parral district and in Zacatecas and Durango, also in Mormon colony at Chuichupa. Villa is reported to be in mountains to the northeast of Durango completely recovered from his wounds, endeavoring to effect contact with Bracamontes and other former generals.