The Ambassador in Mexico ( Daniels ) to the Secretary of State
[Received October 23—6:45 a.m.]
279. Yepis’ despatch #382, August 17 and his telegram of October 21st [20th]27 regarding Yaqui Valley. I am forwarding in today’s pouch an account of my conversation of today with President Cardenas on this subject.28[Page 615]
The President told me he would telephone to the head of the Agrarian Department at Ciudad Obregon this afternoon asking him and the Governor of Sonora, accompanied by representatives of landowners of American and Mexican nationality in the Yaqui Valley, to come to Mexico City to discuss the situation with him next week. He expects that no dotation would be made prior to this discussion. He feels that efforts to compensate through issuance of bonds would be of no material benefit to Americans. These bonds would have to be issued previously for all land taken since 1931. He hopes to reach an adjustment with Yaqui landowners by giving them land not now irrigated but which is to be irrigated from the dam which is to be completed in 1939. This land would he in compensation for all land taken from them over and above the 100 hectares to be left each of them as pequeña propiedad. He assured me these pequeñas propiedades 29 would have priority of water rights.
He said that in order to avoid future dotations, the Americans receiving such land in compensation should sell it in small tracts upon completion of the dam. He has under consideration the issuance of bonds at low interest rate in compensation for land taken in other parts of the country.
I recommend that Yepis be instructed to report to the Embassy at Mexico City when representatives of American landowners come here. He has been advised of proposed conference and of this recommendation.