812.032/452: Telegram

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

312. Following is summary of high points of President’s message to Congress this morning.

Foreign policy. He said world conditions required definition of Mexico’s foreign policy which is oriented for geographical and economic reasons and by similarity of institutions toward the American continent although Mexico maintains good relations with in general all other members of the community of nations. He affirmed that Mexico would not recognize armed conquests nor governments originating in violence. Referring to the League of Nations he said Mexico had no share in its collapse and would continue to support the League no longer for its former practical purposes but for the ideals it represents. He referred to Habana meeting in which Mexico had participated, he said, because of her real desire to contribute inter-American solidarity; he recited the aims of that meeting mentioning the question of the maintenance of the present political status of foreign possessions in America and the strengthening of inter-American commercial and cultural ties and also mentioned that the results of the meeting did not exclude possibility of trade with non-American countries nor did they change in any respect the principles of nonintervention and of mutual respect for national sovereignty (in this connection he remarked that with reference to international claims, foreign capital must abide by the law of the land). He expressed [Page 1029] his Government’s stand against all forms of political violence and referred to Mexico’s welcome to political refugees from other countries mentioning specifically that additional refugees, Spaniards now in France, have been granted permission to come here, an immigration which he considered desirable; but apparently referring to Trotsky murder he emphasized that all such refugees should have the same respect for law and order that Mexicans have.

Petroleum. He alluded to the legality of the Expropriation Act and stated one company had accepted indemnification. If other companies refuse the awards established by law the amounts awarded will be deposited in the Bank of Mexico for their account. The American proposal for arbitration, he said, was not accepted because it would have compromised national sovereignty.

[The remainder of the message related to Mexican domestic problems.]

Daniels

[Further discussion of compensation for expropriated oil properties was merged in efforts to arrive at a general settlement of outstanding questions between the United States and Mexico. See pages 1040 ff.]