411.12/1754

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

No. 1127

Sir: I have the honor to acknowledge the receipt of the Department’s instruction number 261 of February 10, 1934, amplifying the views of the Department as contained in its telegram number 15 of February 3, 1934, 3 p.m. that in connection with en bloc negotiations it was considered highly desirable to press for a favorable decision on the protocol suggested by the Department.

The recommendation for an en bloc settlement of both General and Special Claims, which I made in my despatch number 1031 of January 26, 1934, was to offer a suggestion in the event that Minister Puig might decline to agree to the protocol.

Since the above date the situation has changed. Minister Puig’s counter proposal involves for General Claims an agreement, with some changes, to the terms of the protocol suggested by the Department, and for Special Claims en bloc settlement on a basis of 2.6%. The counter proposal and my recommendation are discussed at length in the Embassy’s despatch number 1094 of February 10, 1934.

Respectfully yours,

Josephus Daniels