File No. 812.51/429a
The Secretary of State to the Ambassador in Mexico ( Fletcher)
997. Eben Richards, who is interested in the Pierce Oil Company and the National Railways of Mexico, and William H. Mealy, whom you doubtless know, called at the Department to-day to inquire what the attitude of this Government would be towards a loan by a private American banking group to the Government of Mexico. They stated that Mealy had been in close touch with Pablo Gonzalez and had discussed with him the circumstances under which such a loan might be made. The Department informed these gentlemen that this Government would look with favor upon a loan by private American bankers to Mexico provided the following considerations were borne in mind:
- 1.
- Mexico to guarantee that American vested property interests in Mexico should not be interfered with, for example, oil interests at Tampico;
- 2.
- A responsible tribunal to be set up by Mexico and the United States for the settlement of claims and provision to be made for the payment of adjudged claims in due course;
- 3.
- Loan to be purely a banking operation and not a method of obtaining concessions from the Mexican Government by American banking groups affiliated with oil and metal industries.
Department pointed out to these gentlemen that the policy of this Government was against intervention in Mexico and that the bankers should clearly understand that the approval of this Government to such a loan could not be used as an opening wedge to force intervention.
These two gentlemen expressed satisfaction with the attitude of the Department and stated that they believed both the Mexican Government and any group of American bankers who might undertake this transaction would be satisfied with the Department’s position.
The above is sent to you for your confidential information and the Department would appreciate any comment you care to make.