812.00/24701½
The Secretary of State to the Confidential Agent of the Government of Mexico (Pesqueira)
My Dear Mr. Pesqueira: The conversations which we have had since the receipt of your notable letter of October 26th, I am very pleased to say, have been entirely in keeping with the spirit and tenor of the expressions it contained, and have quite confirmed the agreeable anticipations it aroused.
I think I may say, as one of the results of these discussions, that no doubt can reasonably be entertained of the high and enlightened purpose that actuate the present Government of Mexico, and I am fully persuaded that you realize the friendship and disinterestedness towards your country, which animate this Government.
We have not required the assurances, so unqualifiedly given in your letter, of Mexico’s regard for the discharge of her obligations, and of her respect for the principles of international law. Your suggestion of a joint arbitration commission to adjudicate the claims presented by citizens of other countries, for damages sustained as a result of disorders in your country, and the further proposal to enlarge and strengthen existing treaty provisions for the arbitration of all controversies, now pending or which may arise between our respective nationals, bring convincing support to your declarations, if that were needed.
You refer at length to the misunderstanding that has arisen, and which has widely prevailed, as to the true scope and effect of Article 27 of the Mexican Federal Constitution. That such misunderstanding has existed, and has exercised an unfortunate restraint upon the impulses of friendly Governments, in their desire to cooperate with the Mexican people in the recovery of the full measure of their material [Page 196] strength and prosperity, cannot be denied. But I can conceive of nothing better calculated to correct this misunderstanding and to allay the fears of those who have acquired valid titles, or who have made substantial investments in conformity with Mexican law, and in reliance upon its protection, than the statements of your letter referring to the declarations of President de la Huerta and President-elect Obregón to the effect that Article 27 “is not and must not be interpreted as retroactive or violative of valid property rights.”
The interest of other nations in this subject should not [be], and I am convinced it is not, attributed to any desire to influence or interfere with Mexico in the adoption and pursuit of any policy with regard to its lands and resources, which expresses its aspirations, and satisfies its people. Indeed, I may remark, that there is wide sympathy for the apparent desire of your country to inaugurate a policy which shall protect its great resources against waste, dispersal or other improvident treatment. The freedom to do this, which no one can dispute, nor even criticize, is in no sense compromised by the due respect for legally vested interests, which you so fully avow, with a convincing sincerity, which is beyond question.
It only remains to give these understandings, a form which is usual in dealings between friendly states, and I have the honor to suggest, as our fruitful discussions draw to a close, that commissioners be promptly designated by both Mexico and the United States to formulate a treaty, embodying the agreements, which have been reached as the result of your successful mission.
I am [etc.]