The Minister said that he was highly pleased that an understanding had
been reached and seemed very happy about it.
He said he would not give out the text until this (Saturday) afternoon at
three o’clock and would give instructions that it be released for
publication in the Sunday morning papers.
I enclose the Spanish text of the note handed to me this morning by
General Hay, addressed to me, and the text of the translation—revised
from the Department’s translation in only a few minor details of
phraseology.
[Enclosure—Translation]
The Mexican Minister for Foreign Affairs
(Hay)
to the American Ambassador (Daniels)
Mexico, November 12, 1938.
Mr. Ambassador: I have the honor to
acknowledge receipt of the note dated November 9, 1938 addressed by
His Excellency Secretary of State Cordell Hull to the Ambassador of
Mexico in the United States of America, Dr. Francisco Castillo
Nájera, in which the Government of Your Excellency, while
maintaining its opinion that the recognized principles of law and
equity require the immediate payment of just compensation for
expropriated properties, makes known its readiness to agree to a
plan which, based on the proposals of my Government, may apply to
the consideration and payment of agrarian expropriations (afectaciones) subsequent to 1927.
The Government of Mexico, in its turn, while reaffirming its
conviction that it has not acted contrary to the rules and
principles of International Law, of justice and equity, by the
enactment and application
[Page 718]
of its Agrarian Legislation, is in agreement with the plan presented
and takes pleasure in recognizing that the sentiments of cordial
friendship which unite our two countries have in the end prevailed
over differences of a technical and juridical order.
As was proposed in its Note of August 3 of the current year, my
Government agrees that the value of the expropriated lands shall be
established by a commission consisting of a representative of each
Government, also that cases of disagreement between these
representatives shall be decided by a third person designated by the
Permanent Commission, established by the Gondra Pact, which has its
seat in Washington, notwithstanding the fact that, in this instance,
it is not a matter of an investigating commission, an express
function in the said pact, of the commission referred to.
It agrees, likewise in conformity with its original intention, that
the representatives of the two Governments shall be immediately
designated and that their first meeting shall take place in the City
of Mexico on the first day of December of the present year. Outlays
for emoluments, travel and other expenditures, both of the
representatives and of the persons assisting them in their work,
shall be defrayed by the respective Governments. The two Governments
shall each pay one half of the expenses incurred jointly.
Likewise, the emoluments which are to be paid to the third person
referred to shall be shared equally, as proposed by your Government,
by Mexico and the United States.
My Government manifests, expressly, that it agrees that the
representatives designated be instructed to the effect that their
work of evaluation be concluded in May 1939,56 and that the
cases of disagreement be submitted to the consideration of the third
person, who will likewise be requested to render his decision within
a term of not more than two months, counting from the date on which
his intervention has been requested.
The Government of Mexico understands that the commissioners, in
proceeding to make the respective evaluation, shall take into
account, among other pertinent facts, the establishment of the
nationality of the claimant, the legality of his title to enter a
claim and the last fiscal valuation prior to the expropriation.
Respecting the manner of payment of the corresponding
indemnifications, my Government will pay the amount of one million
dollars in the month of May 1939.
My Government is agreed that, once the representatives fix the amount
of the indemnifications, the Governments shall agree upon the annual
amount which the Government of Mexico shall pay to that of
[Page 719]
the United States, in the
years subsequent to 1939, on the claims in question. In the
determination of the said annual payments, the economic
possibilities of Mexico shall be taken into account. My Government
agrees, forthwith, that the annual amounts which must be paid to the
United States Government shall not be less than one million dollars,
United States currency, and, lastly, my Government is in agreement
that the payments be made on the 30th day of June of each year.
The Government of Mexico deems necessary to have it understood that
the decisions reached by the representatives designated, shall in no
case extend beyond evaluation of the lands expropriated and the
modalities of payment of the amount determined; that they shall not
constitute a precedent, in any case nor for any reason; neither
shall they decide the juridical principles maintained by the two
Governments and applicable to the matter in question.
The Government of Mexico is pleased to recognize that, in formalizing
this arrangement, it has been able, on the one hand, to show, as was
expressed in the note to which I reply, its especial desire to
safeguard its friendship with the United States, because of the
mutual benefits which this reciprocal sentiment represents for both
countries, and to carry out, on the other hand, the mandates of the
Agrarian Legislation, an expression of our traditional policy,
which, on being interpreted by the President of the Republic, was
supported, formally, by the National Legislative Body, in the reply
given to the message from the Executive by the President of the
Congress of the Union, at the opening of the period of sessions on
September 1, last.
I avail myself [etc.]
