812.00/27399

Memorandum by the Under Secretary of State (Davis)

Memorandum of a Conversation with the Mexican Representative, Señor Fernando Iglesias Calderón.

Señor Iglesias first brought up the question of the request which had been made some time ago to the Chief of the Mexican Division that Henry Hittners’ Sons Company, of Philadelphia, be permitted to sell seven superannuated torpedo boat destroyers to the Mexican Government. He explained that Mexico would like to have these overhauled for utilization only as revenue cutters and despatch boats in Mexican waters. He said that they would expect the torpedo tubes to be removed and to have such small guns as would prevent them from being in any sense used as naval ships. He was very anxious for an immediate reply. I explained to him that we have been refraining from giving our approval of the sale to any countries of any of our naval vessels, but that this matter would be taken into consideration, and in view of the conditions outlined it might be possible to make an exception.

He then informed me that the President of Mexico is very desirous of removing all obstacles to a resumption of official relations between the two countries. He fully realized that certain decrees issued by Carranza in respect to oil developments had been a serious cause of complaint on the part of this Government; that it was necessary to have a proper and final interpretation of Article 27 of the Constitution to the effect that this Article shall not be retroactive and in any way conflict with the valid rights acquired before the adoption of the Constitution, and that the President is considering the issuance of a decree revoking the various decrees of Carranza. He desired to know if this latter action would be satisfactory. I told [Page 181] him that this would undoubtedly still leave the matter open for further Presidential decrees and that some effective means must be obtained for settling once and for all the mooted question regarding the actual purport of Article 27.

He then informed me that while his Government must necessarily, to a certain extent, be guided by public opinion in Mexico and the prevailing political situation, it is most desirous of meeting all objections of the United States Government which would prevent an early resumption of diplomatic relations. He said the fact that he had been here for two months without being permitted to present to the President his letter of credentials could not be understood in Mexico and that in the face of many measures which the Mexican Government has already taken to eliminate causes of previous complaint, and reiterated assurances of making reparation for all damages and injustices committed by previous administrations, he felt that it would be decidedly to the advantage of both countries to resume official relations at the earliest possible moment. He asserted that the mere presentation of his letter of credentials to the President would not involve a recognition of his Government but would have a decidedly good effect. I explained to him that the acceptance by the President of such a letter would undoubtedly be construed as recognition of his Government, at least in the public mind, and that irrespective of the views of this Government, indications are that public opinion in the United States would not favor a resumption of official relations with Mexico unless the principal obstacles are removed which were a cause of complaint and constant misunderstanding and controversy between the United States and previous recognized governments of Mexico. He then stated that we could dispose of such problems more easily through official negotiations. To this I replied that his unofficial status had not prevented him from discussing freely with me any of such questions and that, on the contrary, I felt that it was more advisable for both countries to dispose of some of the principal obstacles to a proper friendly official intercourse so that when official relations can be resumed there will be more definite assurance than heretofore that such relations will grow closer and be more satisfactory.

He said that President de la Huerta is to make a report to Congress on September 1st, which would be impossible without making some allusions to the relations with the United States, and he desired to know what the President could say about this. I suggested that the President of Mexico might make a frank statement to the Mexican Congress of the above facts and that it would no doubt have a good effect if he should further state that it is the intention of the Mexican Government to eliminate all obstacles to a proper [Page 182] friendly and helpful official relation with the United States, which he hoped might be accomplished within the near future.

Upon a specific inquiry from Señor Iglesias, I stated that there would be no objection to the Mexican President stating that although official relations had not been resumed, the Department of State has, whenever he requested, received him unofficially to discuss relevant questions and that there are marked evidences of a better understanding between Mexico and the United States than has prevailed for many years past.

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