711.12/331
Memorandum by the Under Secretary of State (Davis)
Memorandum of Conversation with Mr. Pesqueira, Financial Representative of Mexico.
Mr. Pesqueira first outlined the efforts which General Obregón, President de la Huerta, Mr. Calles and himself (all of Sonora and old friends) had made and are making to get Mexico on her feet and to establish and maintain the closest friendly cooperation with the United States, which they all deem essential. He then said they were willing and prepared to settle fairly and justly all controversies between the two countries and that there were no outstanding questions which would offer any difficulty of immediate settlement except possibly that with the oil interests, but even in this respect the Mexican Government was willing to go to practically any extreme of concession which would be fair to all interests concerned to dispose of this problem which has caused so much feeling and misunderstanding. In an endeavor to reach a settlement with the oil interests he had held several conferences with the International Committee in New York. His first object was to find out just what their contentions are, but so far this has been a difficult task. They have confined themselves principally to berating the Mexican Government and have asserted that unless and until the Mexican Government protects their interests and meets their demands there will be no recognition by the United States Government.
I told Mr. Pesqueira that, while this Government will insist upon fair and equitable treatment to Americans and their properties in Mexico, it will not press any unreasonable claims; that if and when the time arrives when this Government considers it opportune and advisable to extend recognition to the Mexican Government it will not be based upon some one isolated question such as that of the settlement of the oil controversy; that it would be well to bear in mind that no interests or groups will be able to deliver the United States Government, and that I would not care to have the Mexican Government misled into believing that a settlement of this one question would automatically result in recognition. I told him this Government is not attempting to pass upon the validity of titles, leases, etc. in Mexico and that it must necessarily take an impartial position in respect to conflicting claims of American oil interests in Mexico. I further told him that the United States Government does not contemplate dictating conditions on which recognition will be [Page 186] extended, but that when recognition is extended it will be based on the general principles heretofore followed and laid down by this Government in such cases and after Mexico has taken such measures as will in the opinion of this Government justify recognition. I also said nothing would be gained for Mexico or the United States by the renewal of official relations until the removal of the obstacles which have heretofore prevented the normal, satisfactory, official relations which should exist between two friendly peoples.
Mr. Pesqueira then said they were most anxious to have an impartial study made of the oil controversy and that the Mexican Government would be prepared to adhere to the recommendations so made. He then told me that a treaty or some definite arrangement could be made between the two Governments, providing for the automatic disposal of all questions in controversy, and that, if they could not come to a satisfactory understanding in the very near future with the oil interests, they could probably be disposed of by an agreement between the two Governments, providing for an arbitration commission to be named by the two Governments whose decision would be binding on Mexico. He urged that such arrangement should be effected with the de la Huerta regime and that the present Government be recognized, because as Mr. de la Huerta goes out of office in December he would not have to take into consideration the political aspects to the extent that Obregón would have to do, and that, if all these questions could be settled and recognition extended now, Obregón could then take office with a clean slate. He said that of course Obregón would approve of any arrangements that de la Huerta makes.
Mr. Pesqueira said that the Mexican people were now beginning to realize that President Wilson has been the greatest friend Mexico has had, and that it would have a wonderful effect and would be a complete vindication of his policy to have the Mexican Government recognized by his administration.
I again repeated to Mr. Pesqueira that no one was more desirous of being helpful to Mexico than President Wilson, but that in my judgment the last thing he would consider doing would be to dictate to Mexico the conditions upon which he would extend recognition; that it was entirely within the control of Mexico to bring about conditions and a situation which would justify, in the opinion of this Government, the extension of recognition; that the time in which such a situation can be brought about is entirely within the control of the Mexican Government and people, but that it would be impossible now to state just what would remove all of the obstacles to recognition; [Page 187] that nothing would be gained by renewing official relations until Mexico can show that the Mexican Government not only desires to protect life and property and respect valid rights, but that it has taken definite and effective measures to repair the damages which have been committed and to give proper assurances against a repetition of past inability or reluctance to comply with the ordinary international obligations incumbent upon a member of the Society of Nations.
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