812.5200/947

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

Sir: I have received and read with much interest your strictly confidential despatch No. 2942 of October 3, 1935,30 reporting a conversation with the Acting Secretary of Foreign Relations of Mexico relative to expropriations of American-owned lands in Mexico under the so-called agrarian laws of that country.

The Department is gratified to learn of the suggestion made by Dr. Ceniceros that his Government might be disposed to refrain from further seizures of such lands without prompt payment of adequate compensation therefor. While the Department concurs in your view that such an undertaking would, for the several reasons enumerated in your despatch, probably fail to provide definite and permanent assurances of future security for American owners whose lands have not yet been affected by expropriation proceedings, it also shares your opinion that a commitment of the nature referred to, even if informally and confidentially given, would contribute in no small degree to the mitigation of a continuous cause of friction between the two countries. It is, therefore, hoped that you will be able to exert your influence and efforts to encourage the Mexican authorities to adopt this suggestion, which, it may be observed, would appear to involve no recognition of rights of United States citizens in excess of those guaranteed by the second paragraph of Article 27 of the Constitution of Mexico,31 which stipulates that “Private property shall not be expropriated except for reasons of public utility and subject to payment of indemnity”.

It is understood, of course, that the proposed exemption of American citizens from future expropriations could not be conditioned upon any undertaking on the part of the Government of the United States to acquiesce, either tacitly or otherwise, in the failure of the Mexican Government to compensate those American citizens whose lands have already been taken.

Very truly yours,

Cordell Hull