411.12/2466
The Ambassador in Mexico (Daniels) to the Secretary of State
[Received December 6.]
Sir: I have the honor to refer to the Department’s telegram No. 234 of November 26, 1937, 6 p.m., regarding the negotiation of a convention for a lump sum settlement of the general claims, and if necessary for reference of certain claims to an umpire.
[Page 693]I have the honor to report that Mr. Boal87 today discussed in the sense of the Department’s telegram this matter with Licenciado Beteta, Undersecretary of State. Mr. Beteta said that he would consult with his legal experts regarding the matter. He indicated that the reference to an umpire of cases which had not been discussed presented a difficult problem for the Mexican Government. Mr. Boal pointed out to him that the primary purpose of the negotiation suggested was to endeavor to arrive at a lump sum settlement, and that doubtless the negotiators could discuss the procedure in the event of failure with a view to seeing what adjustment could best be made regarding non-discussed claims. Licenciado Beteta said that he would be able to give a reply within a few days.
He again referred to his preference for having the negotiations take place in Mexico City, and to the expense that would be entailed if they took place in Washington. He estimated roughly that it would cost the Government about 25,000 pesos to negotiate in Washington. Mr. Boal asked whether, if some adjustment on the basis of joint expenses could be arranged, the principal objection to negotiating in Washington would not be over-come. Licenciado Beteta seemed receptive to this idea. He said that in the event of negotiations, they might designate the Ambassador in Washington to conduct them and send technical assistants to Washington to work with him. He was anxious that in that event our negotiator should be of adequate rank to deal with the Ambassador on the understanding that the American experts assigned to work with the negotiator would in fact take most of the burden of daily negotiations. He explained that Licenciado Flores88 was seriously ill and would not be able to go to Washington in any case.
Respectfully yours,