411.12/1696: Telegram
The Ambassador in Mexico ( Daniels ) to the Acting Secretary of State
[Received 8:40 p.m.]
220. Reference Department’s telegram 157, November 17, 11 a.m.,28 Ambassador González Roa’s proposal involves payment by Mexico, of approximately $13,500,000. This amount is about $3,500,000 higher than original proposal as discussed in Embassy’s despatch No. 757, [Page 809] November 1, 1933. Regarding method of payment the Ambassador stated informally that President Rodríguez felt that in view of the critical condition of the Treasury the Government would be unable to liquidate the debt in one or several early payments; that he was not in favor of a bond issue on account of the effect on the public debt preferring agreement through an international convention which would have priority over domestic debts. Based on the precedent of the 1868 agreement Ambassador González Roa suggested payments extending over a period of years, about 30 years. No payment of interest during period of liquidation. In support of time period he pointed out the internal debt of Mexico is being liquidated in 40 years and also he referred to the long term payments of the Italian intergovernmental debt to the United States and to the payment by Germany of awards of the German American Claims Commission. Detailed memorandum of the conference held yesterday29 being forwarded by air mail leaving here tomorrow morning. Colonel Moreno ready to leave with pertinent data upon receipt of further instructions from the Department.