812.6363/2945: Telegram
The Secretary of State to the Chargé in Mexico ( Boal )
134. Your 179, July 7, 3 p.m. Please refer to the memorandum transmitted with the Embassy’s despatch 2450 April 12, 1935,45 from which it appears that the then Mexican Foreign Minister stated to Ambassador Daniels that there was no thought of withdrawing from the position taken by the Mexican Government in respect of the so-called Morrow arrangement which he considered to be a finished chapter.
[Page 647]The Department hopes that no action will be taken by the Mexican Government which would reopen the controversial discussions of 192646 which the Morrow arrangement was intended permanently and amicably to dispose of, since from press reports it would appear that the proposed decree will not only deal with royalties but will upset the Morrow arrangement. In order that the Mexican Government may be made aware of our deep interest in the proposed decree, the Department authorizes you, should you see no objection, through informal and friendly contacts with the appropriate Mexican authorities to endeavor to obtain further specific information regarding the nature of the proposed decree and to induce them to realize that any action such as that now rumored the Government is considering taking would probably lead to a revival of the petroleum controversy, which this Government is most anxious to avoid. See Department’s instruction 673, March 23, 1935, for guidance.47