812.6363/3441a: Telegram
The Secretary of State to the Ambassador in Mexico (Daniels)
65. Your telegram 104, April 5, 5 p.m.,1 reports that Beteta said that he might be able to give you “an informal memorandum” of the plan for agrarian compensation on April 9. So far as the Department is informed no memorandum has yet been forthcoming. Moreover, Beteta stated that he would “consider the advisability of giving us a memorandum outlining their plan for compensation to the petroleum companies in oil.” So far as is known the only indication of the proposal that the Mexican Government is contemplating is that contained in the statement issued on April 6 transmitted by your telegram 106, April 6, 7 p.m.1 This disappointment at the failure of the Mexican Government to present plans for compensation is the greater in the light of the impressions conveyed by you in your telegrams nos. 93 of March 1 [31]2 and 94 and 97, both of April 1.3 For instance, in your no. 93 you stated that the President and his advisers “seriously intend to seek means to meet agrarian as well as other obligations”.
As you know, the agrarian expropriations under the present administration in Mexico have proceeded at a very rapid rate, so that more American properties have been affected during the presidency of General Cárdenas than during the terms of all of his predecessors. For over three and one-half years this Government has patiently been endeavoring to learn from the Mexican Government the methods by which it will compensate the American owners of the expropriated [Page 748] property. Without questioning the right of the Government of Mexico to expropriate property, this Government called attention to the obligation to make compensation representing fair, assured and effective value and requested in the most friendly way of the Government of Mexico that it be informed with regard to the methods whereby that Government will make payment for the properties of the American citizens which have been taken. Over 2 weeks have elapsed since this Government inquired of the Mexican Government, through you, what specific plan it had for making compensation. So far the Mexican Government has not made a systematic and detailed reply of a firm character which the situation requires.
During the weeks and months that our Government has been endeavoring with patience and forbearance to arrive at some satisfactory understanding with the Mexican Government regarding compensation it has sometimes seemed that the Government of Mexico, intent upon the development of its program on behalf of the citizens of Mexico, has neglected, if not at times altogether lost sight of the fact that our Government likewise has duties and responsibilities to its citizens of which it cannot divest itself. Among these responsibilities is that of assuring to American citizens compensation for the property which has been taken from them. This Government is today the more impressed of its obligation because of the magnitude of the compensation now owing to American citizens as the result of recent developments. It is needless to say that this Government, now as always, is prepared to meet the Mexican Government in a spirit of friendly cooperation, and it would most reluctantly believe that the Mexican Government will not adopt a similar constructive attitude.
You are requested, therefore, immediately to seek an interview with President Cárdenas and after informing him of the attitude of your Government as set forth above to state that your Government will hope to receive from the Government of Mexico in the very near future the memorandum with regard to agrarian expropriations which it was indicated might be forthcoming on April 9, as well as a memorandum outlining the Government’s plan for compensation to the owners of the petroleum properties.