411.12/1788: Telegram
The Secretary of State to the Ambassador in Mexico (Daniels)
54. Referring to your cables numbers 41, 43 and 44 of April 13, April 14 and April 15. In a last effort to meet every reasonable expectation of the Mexican Government the Department proposes the following changes in the Convention, reference being made to the last draft thereof which was transmitted with air mail instruction No. 321 of April 11.
First. Omit last sentence of paragraph 1 of Article I.
[Page 462]Second. Omit entire contents of Article IV and substitute therefor the following: “In computing the percentage of liability on the abovementioned European claims and, on the basis of that percentage, the amount of liability on American claims, no deductions shall be made from the total claims in either case, except, in the case of the United States, of (a) the amount of decided cases, and of (b) the total amount of those claims improperly filed as special claims, because coming within the jurisdiction of the General Claims Commission under the terms of the General Claims Convention of September 8, 1923.
“The determination of the question as to which of those claims filed both general and special, shall be deducted from the total of the special claims, shall be made in the manner provided in Article V hereof.”
Third. Add to Article V the following: “If the Joint Committee shall be unable to agree as to whether a particular claim which has been filed both general and special properly belongs in the group of special claims or in that of general claims such claim shall be treated as a general claim and shall be adjudicated and settled in the same manner as other general claims under the provisions of the General Claims Convention of September 8, 1923, and the protocol of 1934.”
It will be noted that omission first above is complete concession to the wishes of the Mexican Government in this respect. Deduction of decided cases is also a complete although improper concession to the sensibilities of the Mexican Government because of the Santa Isabel cases. Since lump sum percentage represents proper average recovery on all cases good and bad the elimination of cases designated by decisions as unfounded merely deprives this government of the corresponding percentage of recovery to apply to good cases. There may still remain minor points upon which Mexican Government may not be completely satisfied. But it might be pointed out that successful negotiation of such difficult questions of international difference involves concessions on both sides and that no time remains for protracted discussion of minor technicalities.
Unless agreements can be concluded this week it will probably be advisable to continue negotiations leisurely by mail rather than by cable since possibility of appropriations during present session will have virtually disappeared and probably would not justify further cable communications. Full powers to sign the convention were sent you by air mail April 14, and it is hoped that you can now sign both agreements without further delay. Cable as soon as possible what you do.