812.51/692

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

Dear Mr. Secretary: Supplementing my latest communications to you in reference to the status of the International Committee’s negotiations with Minister of Finance de la Huerta, I may say that the Committee has maintained contact with Minister de la Huerta and has had intermittent communications with him by cable to the end of ascertaining whether any plan could be devised under which, with full knowledge and consent of all bondholders, Clause Six of the so-called Oil Agreement (embodying the bond purchase clause) could be handled to the satisfaction of the Mexican Government. The exchanges are still continuing on this point without, as yet, any definite outcome whatsoever.

Meanwhile, however, Minister de la Huerta has extended, we are informed, until January 25th next, his agreement with the Oil Executives which expired on December 25th. He has made this extension in order to afford time for further negotiations and meanwhile the Oil Executives are not pledged to pay accrued taxes. The Associated Press dispatch crediting President Obregon with stating that no postponement had been made in the matter of taxes is incorrect.

In looking through our files we seem never to have received an acknowledgment to my letter of November 10th.24

I am [etc.]

T. W. Lamont
  1. Letter of Nov. 10 not found in Department files.