File No. 812.51/312

The Secretary of State to Ambassador Fletcher


391. You may state to General Carranza that this Government will not veto loan from the bankers of the United States to the Mexican Government. It would be well, however, in discussing the matter with him to suggest as your opinion that the chances of the Mexican Government obtaining such a loan from any bankers are slight unless they are prepared to give some guaranty in regard to general financial reforms and recognition of valid vested interests, and also that there should be some distinct understanding that the money would be paid to Mexico in instalments.