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

No. 1114

Sir: I have the honor to report in reply to the Department’s instructions No. 287 of November 2, 1928, that Mr. Arthur M. Anderson and Mr. Joseph E. Sterrett, representing the International Committee of Bankers on the Mexican debt, have been in consultation with the Minister of Hacienda and his representatives during the past three weeks. The purpose of these consultations has been to discuss the general principles which might form the basis for a new agreement in regard to the external debt.

. . . . . . . . . . . . . .

I have made no formal representations to the Mexican Government in regard to the possible effect of a new agreement with the International Committee on their ability to make proper provision for the payment, as occasion arises, of other classes of obligations in which American citizens are interested. I have, however, informally called the attention of both the Minister of Hacienda and the Acting Minister of Foreign Affairs to the unfortunate situation which would arise if [Page 323]they now conclude a new agreement on the external bonded debt of such a nature that it might break down when the country is faced with the necessity of providing for the payment of other obligations including the claims sponsored by various foreign governments.

I have [etc.]

Dwight W. Morrow