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

No. 7201

Sir: I have the honor to refer to my despatch No. 7122 of July 28, 1938,38 transmitting a copy of a note to the Foreign Office requesting that definitive dotation of American-owned lands in the Yaqui Valley be postponed pending the making of arrangements for compensation to the American owners.

A note, in reply, has now been received from the Foreign Office to the effect that since a method of compensation was provided in the Eighth Paragraph of the Presidential Acuerdo of October 27, 1937,39 it is not opportune for the Foreign Office to comply with our request. [Page 685] A translation of the note from the Foreign Office is transmitted herewith.40

The Department’s attention is particularly invited to the fact that paragragh VIII quoted from the Presidential Acuerdo refers amongst other things to the furnishing of free water on compensation lands; it will doubtlessly be recalled that Mr. Beteta, Undersecretary for Foreign Affairs, informed Mr. Boal, Counselor of the Embassy, that it would be very difficult to comply with this provision of the Acuerdo, which Acuerdo is that generally affecting lands in the Yaqui Valley.

A copy of this despatch with enclosure has been sent to the American Vice Consul at Guaymas for his strictly confidential information.

Respectfully yours,

Josephus Daniels