411.12/1736: Telegram
The Secretary of State to the Ambassador in Mexico (Daniels)
15. Your despatch No. 1031, January 26. Lump sum offer proposed by you contemplates allowance to Mexico of more than $15,000,000 on ancient claims to land in Texas and California, in support of which Mexico has filed no evidence and which claims were for several reasons considered by the American Agency, after an elaborate investigation, to be worthless. Such a settlement would also create the obligation upon Congress to appropriate corresponding sum to make good to American citizens the amount of national liability thus theoretically avoided by offset of the claims of American citizens. Court of Claims long since held that such national obligation is created in that manner and Congress has in the past recognized such obligation by appropriation of large sums.
In view of these facts and the other considerations outlined on pages 26 to 51 of enclosure with instruction No. 214 of December 16,29 and annexes 10 to 10–14 therewith, the Department considers it highly desirable to press for a favorable decision on the proposed protocol and would prefer not to consider the alternative of a lump sum settlement until it has been clearly demonstrated that such a protocol cannot be concluded. Department’s views will be amplified by mail.
- For instruction No. 214 and its enclosed draft protocol regarding general claims, see Foreign Relations, 1933, vol. v, p. 814; enclosure and annexes under reference not printed.↩