411.12/1138

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

No. 2

Sir: I have the honor to refer to Ambassador Morrow’s dispatch No. 2741, of September 4, 1930, in regard to an en bloc settlement of claims between the United States and Mexico.

[Page 499]

Yesterday Captain McBride, of the Embassy staff, lunched with Mr. Montes de Oca, the Minister of Finance. In the course of the conversation Mr. Montes de Oca referred to various informal conversations which he had had from time to time with Ambassador Morrow in regard to a possible en bloc settlement of claims. He stated that he understood from Ambassador Morrow that the State Department might consider such a proposal favorably. He then asked whether the next move in this matter should be taken by the United States Government or by the Mexican Government. Captain McBride replied that he was without official information on this subject, but that he understood that the United States Government had never made any formal proposals to this end and that, on the other hand, such a settlement is the announced policy of the Mexican Government as set forth in their law of January 25, 1929 (see dispatch No. 1316 of January 4, 192930). He also stated it as his understanding that, in the last conversation between Ambassador Morrow and Minister of Foreign Affairs Estrada (as reported in the above referred to dispatch), it was left for Mr. Estrada to make definite suggestions in regard to the manner in which the subject might be usefully discussed between representatives of the two governments. Mr. Montes de Oca then indicated that he is still in favor of an en bloc settlement and stated that he would discuss the subject with Mr. Estrada at an early date.

In this connection Mr. Montes de Oca stated that he expected to receive at an early date the German Government’s agreement to a proposal that the amount awarded by the Mexican-German Mixed Claims Commission (508,912.31 pesos. See dispatch No. 2786 of September 22, 193030) should be paid in five annual installments without interest.

Respectfully yours,

J. Reuben Clark, Jr.
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