The Under Secretary of State (Olds) to the Ambassador in Mexico (Morrow)

Dear Mr. Morrow: Your long letter addressed to the Secretary arrived in due course. After reading it we took it across the street, where it now is. We expect to follow this course with all important communications which may come from you.

Naturally the report of your preliminary conversations is exceedingly interesting. I can not help feeling that you are on the right track and have already made real progress. At any rate it delights us all to see the old method of long-armed dealing scrapped, and the contrary method of direct personal contact tried. I am sure that the lines along which you are working are absolutely sound.

The intimation about the Supreme Court decision is, of course, important. We have had intimations on this subject before, but this one seems more reliable than the others. Anyhow, I agree that the oil companies ought not to get off the reservation for the time being. They have been very quiet lately. I told them when you left that there would not be anything doing until you found your way about in Mexico, and that it might be several weeks before anything affecting their interests happened. Meanwhile they would have to be patient. They have, as you know, called attention to one or two moves made by the Mexican Government, which seemed to them rather disturbing, but they have not asked for any conferences here. We shall bear in mind your suggestion that nothing be said to them concerning the Supreme Court decision. …

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With warm regards [etc.]

Robert E. Olds