File No. 812.51/312

Ambassador Fletcher to the Secretary of State


352. In my interview with, the President this morning he informed me that he had received offers from two bankers to lend him the money recently authorized by the Congress to be borrowed, and that he believed satisfactory terms could be made if the United States Government did not veto such a loan. I explained to him the interest which our Government has at present in the matter of foreign loans placed in our markets, but stated that I did not believe there was any disposition on the part of the United States Government to place any obstacles in the way of Mexico securing financial assistance. I suggest that I be authorized to say to President Carranza that the United States Government will not oppose his borrowing, if he can, in our market, up to the amount authorized by his Congress. I think it is important for me to be able to say this now, as there is some danger that the bankers, not finding the business attractive, may seek to place the responsibility for failure of the negotiations upon our Government. Personally, I do not believe he can secure loan from private sources but he intends to try and it is important that he should know that our Government does not oppose his effort so that if he fails he will know the real reason.