712.00/58: Telegram

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

33. President Cárdenas distributed today written answers to questions of foreign newspaper correspondents. Regarding creation of Pan American Bank stated that it would be useful to strengthen continental solidarity. Regarding German merchandise for Mexico, he stated the Government had asked and received favorable reply from France to its request that deliveries of German merchandise to Mexico, [Page 982] purchased before the war, would not be molested. Regarding capabilities of naval powers of American continent to maintain neutrality zone, he stated nations should think in terms of moral force rather than naval force and should wait for belligerent nations to consider the general advisability of respecting the zone approved at Panama City. Regarding admission of further contingents of Spanish refugees, he stated Mexico can admit more, especially agriculturist. Regarding aid to Finland, he believed that a joint peace action by all non-belligerent nations to seek a rational solution of the conflict would be best move. In reply to questions regarding use of oil tankers, President made statement that, if the nations of the American continent would stop selling all classes of products to the belligerent nations as a means toward contributing to peace, Mexico would surely be disposed to cooperate.

Relative to petroleum, the President is reported as saying that, after judicial appraisals, Government would not be able to modify them and since no denial of justice existed in any phase of expropriation and Government has not refused prompt and just indemnification, the solution of the controversy must be settled to its last detail directly between the Government of Mexico and the companies themselves and the Government considers that international arbitration is not [to] be resorted to.