411.12/1790: Telegram
The Ambassador in Mexico (Daniels) to the Secretary of State
[Received 4:05 p.m.]
49. In a 2-hour conference at the Foreign Office yesterday during which the entire claims situation was reviewed and the acceptance of the points outlined in the Department’s telegram 54, April 17, 3 p.m. urged, the Foreign Minister stated that much to his regret he had reached the limit of concessions and that he would prefer postponement of further negotiations and that he could not sign the protocol without the convention. He based his decision on the fact that the recent changes and additions suggested by us had not only resulted in increasing the obligations to be assumed by the Mexican Government but involved radical changes from the plan originally proposed by him, a plan that was in its essentials based on former Ambassador Clark’s proposal for an en bloc settlement and the application of the average percentage resulting from settlements made by Mexico with European Governments. The original draft of the protocol and convention were prepared by the Department. During the negotiations both Governments have made concessions. In my opinion the concessions made by the Foreign Minister have been greater than those made by the Department. I hope I can persuade him to accept the convention if I am authorized to sign it with article IV with changes reported in my telegrams numbers 41, April 13, 4 p.m., 43, April 14, 3 p.m. confirmed in subenclosure of the Embassy’s airmail despatch 1336 of April 1796 and Department’s suggested addition to article V eliminated. While all of the Department’s suggestions have not been accepted by the Minister I feel that unless we meet him on the present issue the question of claims will be postponed indefinitely with no assurance that the future negotiations will result in an agreement with better terms than those in the present one especially in view of the possible change of administration following the elections. If it meets with your approval I believe that a telephone conversation, after you have had opportunity to study the problem might be beneficial. If you agree please telephone me at your earliest convenience.
- Despatch No. 1336 not printed.↩