I am enclosing a memorandum giving the gist of a conversation lasting
half an hour, together with a copy and translation of the note [Page 711] he gave me51 summarizing his proposal, and
a copy of the memorandum I gave to him51 about Presidential Resolutions published in the Diario Oficial since September 1, 1938, affecting
American-owned lands. The report of my interview with President Cárdenas
indicates the representations I made and his pledge to end dotations
while negotiations are in progress.
[Enclosure]
Memorandum of Conversation, by the Ambassador in
Mexico (Daniels)
[Mexico,] October 26, 1938—11 a.m.
Accompanied by my Secretary, Mr. Aguirre, I called on President
Cárdenas at the National Palace at 11 o’clock this morning. My
audience with the President was by his request, which was
communicated to me last night through a letter to Foreign Minister
Hay, shown to me by the latter.
Upon my arrival at the National Palace an Aide of the President met
me on the ground floor and escorted me to the President’s office.
After exchanging friendly greetings, the President began by
expressing his apologies for having disturbed me last night and
asking me to call to see him this morning; he said that only because
of the seriousness of the situation, and only as it involved matters
affecting pending negotiations between our two countries, had he
asked to talk with me—realizing, he said, my willingness at all
times to promote understanding between our two countries.
The President then related the gist of the conversation, telephoned
to him, which the Mexican Ambassador had yesterday in Washington
with Undersecretary Welles, who, he said, had proposed to his
Ambassador that the Mexican Government pay one million dollars in
1939 toward the settlement of the agrarian land controversy, and the
balance in four equal annual installments. The President went on to
explain that this was very difficult for Mexico to do under its
present economic possibilities; that since his Government did not
know the exact amount which our Government was obligating him to
pay, and since this total amount would not be fully known until
after the two Commissioners had determined the full amount, his
Government could not possibly commit itself to pay the one million
dollars in 1939 and the balance in four annual installments.
[Page 712]
He proposed that Mexico pay one million dollars in 1939, one million
in 1940, one million in 1941, and so on until the obligation—that
the Commissioners should fix within six months—had been
discharged.
Another feature of the proposed settlement that was disturbing, he
said, was that he could not seek nor obtain the approval of Congress
unless he could state to the members of Congress the exact amount of
agrarian claims which he had agreed to pay the American Government.
He said that if he submitted the proposed settlement to his Congress
regarding the four annual installments of the balance due after
payment of the one million dollars in 1939, and could not inform the
members thereof the exact amount, the Congress would not authorize
an unknown sum, particularly since he knew full well that he could
not get authority for payment beyond the economic possibilities of
his country. On the other hand, the President said, if he could go
to Congress and tell them that his Government would pay one million
dollars annually until the obligation had been discharged, he felt
quite confident that he would secure its approval.
I then asked the President if I was to understand correctly that his
proposal was that he would pay one million dollars in 1939 and the
balance in similar annual installments until the full amount of the
agrarian land claims of American citizens had been discharged. He
said that was correct. The President then went over to his desk and
he handed me a copy of his proposal, which he said would enable me
to understand clearly his proposition. I thanked him and he gave me
the memorandum which is appended hereto.52
I took with me to the Presidency a memorandum giving a list of
Presidential Resolutions dotating land belonging to Americans which
had been published in the Diario Oficial
since September 1, 1938. I called to his attention that some of
these were for land dotations which had been made the previous year,
but were just now being published in the Diario
Oficial; and said that publication at this time when
negotiations were going on in Washington in an endeavor to reach
some settlement over the lands expropriated from American citizens
was not looked upon with great favor and hampered negotiations. The
President looked very surprised and said that he would immediately
call the Ministry of Gobernación and instruct them to suspend
publication of all such cases, adding: “I will instruct the Minister
to cease publication of any further agrarian cases affecting
American citizens until after negotiations in Washington have
terminated.”
I then said to the President that inasmuch as efforts were being made
to reach an amicable settlement of the land controversy and in order
not to hamper the present negotiations, I hoped it would be possible
for his Government to stop further expropriation or dotation of
American lands. The President thought for a brief moment and [Page 713] said: “Mr. Ambassador, I
will give immediate instructions to the agrarian authorities to
cease any further expropriation of American lands while negotiations
are in progress.”
He then brought up the proposed expropriation of the United Sugar
Company properties in Los Mochis, Sinaloa. He said: “Of course I was
under the impression and thought the Department of State understood,
as I had understood, that the sugar company had agreed to the
distribution of the land to the campesinos on
the same basis as the Atencingo property (of William O. Jenkins)But
when General Mugica53 communicated
my wishes to the President the other day he immediately suspended
the proceedings that were going on. He said that it was his (the
President’s) understanding that the officials of the company had
agreed to pay the campesinos, for purposes of
harvesting the sugar crop, 700,000 pesos; and that the Mexican
Government would make up the difference of 500,000 pesos: a total of
1,200,000 pesos, which was the cost of harvesting this year’s crop;
but that apparently the officials told the Mexican Government one
thing and told the American Government another. He seemed rather
annoyed at the situation that had arisen contrary to his
understanding. Everything there has been suspended.
When I took leave of the President, he said he was most anxious that
the two Governments should come to an amicable agreement and that
his Government was ready to agree to as large a payment as the
financial condition of his country would permit. He asked me to
communicate any information I might have for him regarding the
matters he had discussed with me.
I told the President that I would get in touch with the State
Department and convey to him information concerning the attitude of
Washington towards his proposals. I told him that after receiving
the note last night I had talked to Mr. Duggan of the State
Department, who readily granted his request for postponement.
President Cárdenas said he would be glad if I would convey his high
regards to President Roosevelt, and assure him that he followed his
progressive policies with admiration.
