The Alternate Chairman of the International Committee of Bankers on Mexico ( T. W. Lamont ) to the Secretary of State

Dear Mr. Secretary: I thank you for your note of September 12th.21 Of course I shall be sure to see you prior to my departure for Mexico as it is important that I should secure your latest counsel.

It would appear to me that the course of my conversation with Obregon and de la Huerta, if they are the officials with whom I talk, is likely to be about as follows:

—Discussion as to plans for resuming interest payments upon the Mexican Government’s external obligations now overdue; methods of remedying the defaults, etc.
—Inquiry on the part of the Mexican officials as to what financial assistance, in the way of a new external loan, they may look forward to for re-organization purposes, in case they meet the views of the International Committee in the adjustment of the present overdue indebtedness.
—Reply upon my part that, of course, until such time as recognition has been accorded to the present Mexican government by the United States, Great Britain and France, it is quite hopeless for the [Page 499] Mexican government to float a loan in any one of those countries; the investing public will, of course, decline to buy fresh securities from a government remaining unrecognized.

Of course the conversation may not run along the foregoing lines. The government may indicate no desire for fresh assistance but, although [sic], every report to us indicates that the railroads are in very bad condition. Should recognition be granted by the Department prior to my arrival in Mexico City, of course, the situation would be changed materially.

I am planning to leave here on or about Friday, September 30th, and if agreeable to you, plan to run over and see you on Monday or Tuesday of that week, September 26th or 27th.

In calling your attention to the attached clipping,22 I hardly have to say to you that it is inaccurate in every particular, I have been in Washington only twice in the last three months, once early in June and once in August, both visits having been made for a conference with you, and in both instances I came directly back to New York after leaving your office.

I am [etc.]

T. W. Lamont
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