411.12/1696: Telegram
The Acting Secretary of State to the Ambassador in Mexico ( Daniels )
163. Reference Embassy’s despatches 757 of November 1 and 809 of November 17, 1933,33 and Embassy’s telegram 220, November 17, 1 p.m. regarding en bloc negotiations, you are advised as follows:
After a careful study of the situation from international and domestic points of view the Department considers that the proposal of the Mexican Government is unacceptable, both as regards amount and terms of payment. It is believed that a settlement on the basis of a counter proposal can not be negotiated and a Convention drafted in time to be presented to the Mexican Senate before its adjournment this month. The Department is giving consideration to the terms of a protocol to be negotiated with the Mexican Government which need not be submitted to Congress. It would provide for the prompt completion of pleadings and exchange of same by agencies of the two Governments within 2 years in order to determine the actual worth of unadjudicated cases heretofore filed by both Governments. During the above period it is not anticipated that commissions be organized for the hearing of cases. After all cases have been pleaded the two Governments would be in better position to appraise them for purposes of an en bloc settlement. If such an en bloc settlement were then impossible, speedy adjudication by a mixed claims commission or by simplified procedure could be undertaken.
The Department has in mind as simplified procedure the designation by each Government of an outstanding jurist who would be its own national and who would go over all claims as fast as the pleadings are completed for the purpose of appraising them on their individual merits. After the completion of all pleadings these two officials could meet and reconcile their appraisals and if they could not agree upon the final disposition of all cases, they could enter awards in those cases on which they were able to agree and submit to a neutral umpire [Page 814] those cases on which they might disagree, the awards in both cases to be final. This would make it possible to terminate the work within a short period at a minimum cost and without friction.
The foregoing may be communicated orally to the Foreign Office. Formal communication with more specific development of these ideas will be sent you in the near future. Moreno leaves tonight and will explain in greater detail.
- Latter not printed.↩