The Secretary of State to the Ambassador in Mexico ( Daniels )
197. Your 420, October 29, noon.54 The Mexican Ambassador was informed last night that this Government would agree to an understanding [Page 714] between the two Governments similar in text to that proposed to he Ambassador on October 19, but modified so that while the Government of Mexico would still be obligated to make its first payment of one million dollars at the termination of a period of 6 months from the time the commission commences its work, the amount of the further annual payments would be agreed upon by the two Governments after the completion of the valuation of the properties by the commission, taking as a prime factor in the reaching of such an agreement the ability of the Government of Mexico to pay. The Government of Mexico would further agree that the annual payments to be made after 1939 would in no event be less than one million dollars yearly.
The text of the proposed agreement55 has been handed to the Mexican Ambassador and has been transmitted by him to President Cárdenas directly by airmail today. It is his hope that the exchange of notes may take place within the next 5 days.
The above is sent you solely for your information. Since the Mexican Ambassador here is awaiting final confirmation from President Cárdenas direct, there is no need for you to make any representations in the matter.