File No. 711.12/115
The Ambassador in Mexico ( Fletcher ) to the Secretary of State
Sir: I have the honor to confirm my strictly confidential telegram No. 1232 of June 28, 4 p.m.,1 and to report that immediately upon the receipt of the Department’s telegraphic instruction No. 1211 of June 26, 3 p.m.,1 I arranged for a conference with President Carranza and was received by him at Chapultepec at noon last Friday.
I told him that I had been instructed by the Department to inform him of the President’s desire to translate into concrete acts the friendly sentiments which he had expressed to the Mexican journalists at the White House several weeks ago. I referred to the fact that he himself, in an interview I had had with him week before last, had intimated that “actions speak louder than words.” I told him that I had come to consult with him in friendly fashion as to how the President’s policy of friendship could best be expressed in deeds. He seemed quite pleased to hear this and smilingly said that he thought that if the present restrictions on trade and intercourse between the two countries could be reduced to a minimum, all resentment would quickly disappear and friendly feeling be reestablished.2
He referred to the fact that practically everything Mexico produced went to the United States; that it was almost impossible to receive gold in return, and very difficult to receive the ordinary articles [Page 595] of commerce, and that, as a result, Mexico was placed in a difficult and unjust position. He said that after seven years of internal upheaval, Mexico was obliged to remain neutral in the Great War, but he did not believe she should be made to suffer on that account. That the gold and food and the products which she believed she had a right to receive in exchange for the products Mexico exported to the United States, were intended solely for Mexican consumption and could not in any way, in his opinion, aid the enemies of the United States. He said he realized that there were some things which the United States could not spare for export, and that he did not and would not insist on the free importation into Mexico of such articles. He remarked, by the way, that he thought our black-list policy was having a bad effect in Mexico. He went on to say that he thought trade and intercourse between the United States and Mexico should be as free as possible, and that he hoped some day that free trade between the two countries might be brought about, that his idea was to work toward this end, and that if it were possible, he would like also to abolish export duties. He said that since our export embargo went into effect many vexatious and, in his opinion, unnecessary things had occurred, and as an instance he referred to a small present which had been shipped to him from Japan and concerning which American officials had raised many questions and difficulties at San Francisco.
He also referred to the difficulties he had encountered in securing a loan in the United States. He said he realized that our country was the only one in which he could secure a loan at this time; that he had received several propositions for a loan, but had committed himself to none of them; that he felt that without the friendly consent of the United States Government no loan could be successfully arranged. I remarked that I believed these difficulties would quickly disappear if the friendly feeling which President Wilson was so anxious to create between the two countries could be brought about.
I then broached the idea of a conference, as suggested by the Department’s telegram. He replied that such a conference was unnecessary, and from past experience he believed it would accomplish nothing; that he thought all these matters could be satisfactorily arranged through conferences with me. He said that he and all the members of his Government had great confidence in me and my friendly sentiments and sincere desire to bring about friendly and cordial relations between the two Governments.
He then referred to my note of April 2 with reference to the petroleum decree. He said that it had made a distinctly bad impression because it threatened armed intervention in support of a particular interest; that the decree in question applied to Mexicans and foreigners alike, and that the American Government should not claim privileged treatment for its nationals. This is the cardinal principle of the so-called “Carranza doctrine”. He repeated the complaints against the note which have appeared from time to time in the newspapers here, and with which the Department is familiar from the extracts which I have forwarded each week. In reply I endeavored to avoid argument of the point and stated that, in my opinion, the United States Government would have no difficulty in subscribing to the principle of equality of treatment of foreigners [Page 596] and nationals, provided such treatment was absolutely fair and just; that the note merely asked for such justice for Americans who had made investments and acted in strict accordance with existing Mexican laws; that I had orally presented to his Minister for Foreign Affairs the Department’s apprehensions with regard to the decree and urged such modifications as would make a protest on the principle involved unnecessary, and that it was only after the Minister for Foreign Affairs had informed me that no modification would be made in the decree as published, that the note was sent; that it was the Department’s idea and hope that the note would serve to call the Mexican Government’s attention to the seriousness of the question raised and to prevent action which might seriously involve the two Governments; as to the threat which had been read into the note (of which both the President and the Mexican newspapers at his inspiration have made so much), I told him that I did not believe the matter would or should be allowed by either Government to reach a stage where armed intervention or war would be the only means of protection, and that there were many peaceful and legal means short of that which could be resorted to in the settlement of the difficulty, and I mentioned that, in my opinion, the question was purely a juridical one concerning the interpretation of Mexican statutory and constitutional law. The President seemed to agree with this position and intimated that arbitration of the difficulty would be possible. I did not press this point as, in the light of past experience, I feared he might take the position that the Mexican Constitution was not the proper subject of arbitration by outside parties.
As several of the newspapers have stated that the Mexican Government was preparing a sharp reply to my note, which the Mexican Government would publish immediately, I suggested that this might seriously interfere with the working out of a more friendly spirit, and said that I hoped the answer might be delayed, and when sent would be couched in such terms as would not preclude further friendly negotiations, and to this he seemed agreeable. He said that he hoped and believed that President Wilson had no knowledge of the note at the time it was sent.
I then turned the conversation into less contentious channels, reiterated my sincere desire to carry out President Wilson’s ideas, and stated that I would largely rely upon his friendly advice and assistance in the matter. He said that he would be very glad to cooperate in every way possible, and after some further conversation along these lines, I took my leave.
My personal relations with President Carranza are of the most friendly sort and my interviews with him are invariably pleasant and agreeable. This conference was especially so, and he was distinctly pleased and gratified to receive the message I delivered to him.
Upon my return, I telegraphed to the Department the substance of this conversation and recommended that the announcement be made immediately of the adoption of a more liberal export embargo policy, and made certain suggestions as to what this announcement might contain. …
There are a number of difficulties in the way of the smooth and successful working out of the President’s plan to gain the good will and friendship of Mexico. I think it would be advantageous and [Page 597] advisable if I could have a personal conference with the Department on the whole matter, and I so suggested in a telegram yesterday. In my talk with President Carranza I intimated that I might conclude to run up to Washington for a conference, and he said he thought it would be a good idea. I told him that I feared my going away at this time might be misconstrued, and he stated that he would be very glad to take steps to see that a wrong and harmful construction would not be put on my journey.
The statement which the Department issued on June 29, on the subject of the consistency of the President’s speech and the petroleum note, was published here by all the papers except El Democrata and El Pueblo yesterday.
I have [etc.]