File No. 612.119/1017

The Ambassador in Mexico ( Fletcher) to the Secretary of State

[Telegram]

823. Continuing my confidential 822, March 4, 5 p.m.

Mexican Government has issued a formal statement which is published in all the papers this morning, stating that when a memorandum of the proposed Treasury arrangement for the exportation of gold (verbatim copy of which was left by me with Minister Lay) was submitted to the Cabinet, the President and the members of the Cabinet for grave and diverse reasons unanimously rejected it in every one of its clauses, and in order that the public might understand the terms of the project the memorandum is published in full. The statement goes on to say that notwithstanding the above, discussions will continue, the President deciding to handle them directly, having appointed a commission from the Cabinet to study the new propositions to be submitted to the American Government through American Ambassador by the Department for Foreign Affairs. The statement did not refer to food or any other part of the negotiations. This announcement is the first and only direct exposition I have received of the Mexican Government’s position.

Fletcher