Foreign Relations of the United States Diplomatic Papers, 1935, The American Republics, Volume IV

812.5200/944

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

No. 2899

Mexico, September 19, 1935.
[Received September 25.]

Sir: I have the honor to refer to the Department’s instructions numbers 861 of September 11 and 819 of August 3²⁷ in regard to the Mexican agrarian policy.

Pursuant to these instructions, I called on the Acting Minister for Foreign Affairs²⁸ this morning and began the conversation by referring to my representations last February to Mr. Portes Gil, then Foreign Minister, when he had informed me that his government had issued all the agrarian bonds authorized by Congress and that inasmuch as Congress was not then in session and since no provision had been made in the budget, it was not possible for the government to give any compensation for lands expropriated under the agrarian law. However, Mr. Portes Gil had said, and had later confirmed it in writing, that the Minister of Hacienda was making a study of the country’s financial obligations with a view to providing for them in the next year’s budget and that the question of the agrarian bonds was included in this study. I pointed out to Mr. Ceniceros that Congress is now in session and that it seemed only right that some action should now be taken to provide for the compensation of American citizens whose lands had been and were now being expropriated and strongly urged that no more lands be taken from American citizens until adequate provision had been made to pay for them.

Mr. Ceniceros said he would take up the matter with the President at their next meeting on Tuesday, September 24th, when he promised to go into the whole subject thoroughly and would also ask the President’s permission to discuss the matter with the Chief of the Agrarian Department.

I emphasized the fact that interest and amortization payments on agrarian bonds had been in default for several years and since these bonds were no longer accepted in payment of certain taxes they were now of little or no value. I expressed the hope that he and the President could make some arrangement which would be satisfactory to both our governments and asked him if he thoroughly understood the position of the American Government as I had presented it to him. He replied that he did and would discuss the matter at length with the President.

On returning to the Embassy I decided to make doubly sure that my representations were thoroughly understood, so wrote a letter to the Acting Minister confirming my conversation with him. A copy of my letter is attached hereto.

Respectfully yours,

Josephus Daniels

[Enclosure]

The American Ambassador (Daniels) to the Mexican Acting Minister for Foreign Affairs (Ceniceros)

Mexico, September 19, 1935.

Dear Mr. Minister: In response to your inquiry this morning as to the date of my talk with Mr. Portes Gil, I find it was on February 11th. The Minister told me then that the authorization of bonds covered only a limited amount and this had been exhausted and that new action by Congress would be necessary before any additional bonds could be issued or paid.

In that conversation I pointed out to the Minister that it was the expectation of my government that payment of defaulted interest would be made on agrarian bonds and that it would be arranged that prompt payment would be made for property taken for which no bonds or adequate payment in cash had been provided.

In a letter under date of February 16th, Mr. Portes Gil informed me that the Ministry of Hacienda was making a study of the different questions relating to the domestic credit of the country, and when that study was completed it would include that referring to the agrarian bonds and the payment of corresponding interest. Later I urged, as I told you this morning, that no more land of Americans be taken until Congress made authorization for the payment for same.

Inasmuch as Congress is now in session I wish to press the former suggestions that no land belonging to Americans be dotated until provision is made for the payment for such land and that payment for land heretofore dotated, belonging to Americans, be provided.

I thank you for saying you would discuss my representation with the President at your conference with him on Tuesday. I am sure he will wish to arrange for just compensation.

With sentiments of esteem [etc.]

Josephus Daniels

27. Neither printed.
28. José Angel Ceniceros.