411.12/1780: Telegram
The Ambassador in Mexico (Daniels) to the Secretary of State
[Received 9:03 p.m.]
38. Referring to Department’s telegram No. 47, April 7, 1 p.m. Minister of Foreign Affairs agrees to following Department’s changes to Special Convention:
In Article III to interest; in Article IV to omission of amounts; Article V as revised by the Department. Agreeable to an exchange of notes in the sense of the Department’s interpretation of Article VI. Regarding proposed addition to Article I, Minister takes position that suggested insertion introduces a new stipulation in the principle of a settlement based on the general percentage average of the settlements with European nations approximately 2.6 percent and it will require further study of the effect of the proposal and subsequent consultation with the President before he can give decision. If proposed change in Article I is eliminated he is ready to sign convention.
With reference to statement in the Department’s telegram regarding present understanding of the two Governments may I point out that from the beginning of en bloc negotiations the discussion has been predicated on a settlement based on a general average of approximately 2.6 percent without any mention of any deduction to European claims as in the case of American claims. Any disadvantage accruing to American claimants is more than compensated by provisions of the convention to the effect that the deduction of claims duplicated on jurisdiction grounds will be determined later by joint committee instead of deducting 50 percent of the value of duplicated claims as originally proposed.
[Page 453]Regarding section 4 of Article No. IV, it was originated by the Foreign Office which advises that it is intended to make clear that in eliminating from the proposed convention those claims that might be general the final jurisdiction and validity of such claims should be determined by the terms of the General Convention and protocol and not by any provision of the convention under consideration.
In view of the substantial progress made in today’s negotiations towards a final convention and of my understanding of the antecedents I earnestly hope that the Department will agree to the omission of the change in Article I otherwise the negotiations will be delayed with no assurance of gaining the point. I await the instructions of the Department.