TRANSITORY First. The present law is issued in organic conformity with paragraph 3 of article 27 of the Constitution, and in exercise of the right which the Nation has to impose upon private property the restrictions which public interest demands. Consequently, since the Legislatures of the States have not yet issued laws regarding the subdivision of latifundios, which they were obliged to do within the Constitutional period subsequent to the promulgation of the supreme code, this law shall be compulsory throughout the Republic, ceasing to be in force in each State when said State shall decree its corresponding agrarian laws. Second. In conformity with the provisions of section (b) of the eleventh paragraph of article 27 of the Constitution, owners of lands declared to be latifundios, in accordance with the terms of this law, shall enjoy a period of 3 months within which they themselves may carry out the subdivision of the lands decreed expropriable, subject to the provisions of this same law. The National Agrarian Commission shall be empowered to extend the said period for not exceeding 2 months, provided, in each case, it is fully shown that it has been impossible for the owner to complete the subdivision. Third. Until such time as the operation of cooperative agricultural societies is provided for by law, the Secretary of Agriculture and Fomento, for the purpose of expediting the subdivisions to which the present law refers, shall aid in the formation of agricultural colonies. Fourth. The provisions of the present law shall in no case be applicable to the restitution and grants of ejidos (commons), which shall be governed exclusively by the law of January 6, 1915, and by the decrees or rulings which regulate it. Fifth. The present law shall become effective on the day of its promulgation. Sixth. All laws and regulations which are opposed to the present law are hereby repealed. Seventh. The National Agrarian Commission shall regulate the precepts of this law by means of circulars. 812.52/619: Telegram The Secretary of State to the Chargé in Mexico (Hanna) WASHINGTON, May 14, 1921-5 p.m. 65. Your despatch 3847, April 30th, Agrarian Bill.97 Consulate San Luis Potosi reports Bill has passed and Act now in force. "Not printed. Informally request appropriate authorities to advise you whether such is the case and take occasion to renew informal protest made pursuant Department's 54, April 20th, 6 p.m., adding that this Government will not consent to the application of the attempted confiscatory provisions of this measure to American citizens owning land acquired in accordance with Mexican law. HUGHES 812.52/636: Telegram The Secretary of State to the Chargé in Mexico (Hanna) WASHINGTON, May 28, 1921-3 p.m. 73. Your despatch 3878, May 14, Agrarian Bill. Consideration bill reveals its ambiguity in important respects, for instance, provision for payment for fixing value of improvements and for preserving rights of creditors. Article 22 gives property owner only 10 days in which to report whether he consents to sub-division. This would be entirely inadequate in case the owner resided at a place remote from affected lands or outside Mexico. Article 46 apparently assumes to attempt to penalize owners for resorting to remedies they may have under existing laws. Compensation provided is inadequate since only tax valuation plus 10 per cent is to be paid and that in bonds of National Agrarian Debt, payable in Mexico and in Mexican money, which would seemingly have small market value and owners of which would be remediless in case of default, except through diplomatic channel and would be exposed to danger of being compelled to accept payment in depreciated fiat money. Measure does not meet provision for protecting owners in expropriation proceedings, which prevail in United States and generally as in accordance with justice and equity. Communicate foregoing to appropriate authorities on behalf of interested American citizens and make strong informal protest against passage of measure in present form. HUGHES 812.52/680 The Secretary of State to the Chargé in Mexico (Summerlin) No. 1708 Periodico Oficial dated July 14, 1921, providing for the expropriation of property in excess of five thousand hectares held by any person or corporation in that State. This law is passed for the purposes expressed in Section 7 of Article 27 of the Constitution of Mexico of 1917. In a telegram dated July [January] 22, 1917, to Mr. Parker,98 representing American interests in Mexico City at that time, the Department outlined in the third and the last paragraphs of that telegram its position relative to Section 7 of Article 27 of the Mexican Constitution. Guided by this telegram, you are instructed immediately to bring this law informally to the attention of the appropriate authorities, pointing out that the operation of this law will apparently result in the attempted confiscation of property rights acquired in accordance with Mexican law, and that the method of taking provided in the Agrarian law of the State of Durango does not involve a proper exercise of the right of expropriation. You will express the hope that measures will be taken looking to the non-enforcement and the ultimate repeal of this law, as the United States cannot acquiesce in any attempt, direct or indirect, to confiscate property lawfully owned by its citizens in Mexico. I am [etc.] For the Secretary of State: 812.52/724: Telegram The Chargé in Mexico (Summerlin) to the Secretary of State MEXICO, September 12, 1921-11 a.m. 179. Your telegram number 123, September 10, 5 p.m." 99 The Foreign Office has not even acknowledged receipt of Embassy's representations concerning Durango and other agrarian laws. SUMMERLIN 812.52/724: Telegram The Secretary of State to the Chargé in Mexico (Summerlin) WASHINGTON, September 19, 1921—4 p.m. 128. Your 179, September 12, 11 a.m. You will renew your informal representations concerning Durango and other Agrarian laws, and state that, in view of importance of American interests affected by these laws, this Government hopes that early responses will be made to your informal representations. You will informally and discreetly continue to press for replies to your representations concerning these Agrarian measures and report results. HUGHES 812.52/788 The Chargé in Mexico (Summerlin) to the Secretary of State No. 4628 MEXICO, December 1, 1921. SIR: With reference to the Department's No. 1708, of August 6, 1921, and to subsequent instructions relative to the Agrarian law passed by the State of Durango, I have the honor to report the receipt of Foreign Office informal note No. 7406, dated November 28, 1921, (received to-day) in regard to this matter. Mr. Pani states that the Executive finds himself prohibited from intervening to cause the derogation of the law in question, by virtue of the fact that the States of the Federation are absolutely sovereign in respect of their internal regimen. Mr. Pani concludes by saying "nevertheless, in the event that citizens of your country suffer any injury, they have tribunals and recourses ready at hand given them by Mexican laws to defend themselves against any trangressed disposition of the text of the Constitution or violation of individual guarantees". I have [etc.] GEORGE T. SUMMERLIN INEFFECTUAL DISCUSSIONS BETWEEN THE OBREGON GOVERNMENT AND THE INTERNATIONAL COMMITTEE OF BANKERS ON MEXICO1 812.51/629 The Acting Chairman of the International Committee of Bankers on Mexico (T. W. Lamont) to the Under Secretary of State (Fletcher) 2 NEW YORK, March 28, 1921. MY DEAR MR. FLETCHER: I thank you for your letter of March 25th, advising me that the Department approves of our request to enlarge the International Committee of Bankers on Mexico by the addition of a representative from Belgium, the understanding being that effective control shall remain in our hands. 'For previous correspondence relating to the activities of the committee, see Foreign Relations, 1920, vol. III, pp. 226 ff. 'Not printed. We have accordingly advised the British and French Groups that the American Group, with the approval of the Department of State, has voted favorably on the admission of a Belgian representative. We are also giving to the press a brief announcement covering the above. Yours very truly, T. W. LAMONT 812.51/726 The Alternate Chairman of the International Committee of Bankers on Mexico (T. W. Lamont) to the Secretary of State DEAR MR. SECRETARY: NEW YORK, June 27, 1921. In regard to the projected visit to Mexico, it is the belief of the American Committee, in which I know the foreign committees join, that some response should now be made to the invitations that have been extended to me by the Mexican Government. Accordingly, the American Committee has authorized me to make response, and unless the Department disapproves I propose to address the following letter to the Mexican Chargé, at Washington, who came to New York in person and presented the original invitation to us from his government: "Referring to your letter of February 7th last, addressed to me as Acting Chairman of the International Committee of Bankers on Mexico,10 transmitting certain expressions from your government as to any possible visit that I might make to Mexico City; referring further to my reply of February 8th last,10 in which I said that 'I have conferred with the members of this Committee, and it was their unanimous opinion that, while the Committee was anxious to cooperate with the Mexican Government in every way in its power, yet as this Committee was formed with the approval of the Governments of the United States, Great Britain and France, the American section of the Committee felt bound to withhold its decision in the present situation until it had consulted with the Department of State at Washington,-which Department would doubtless wish the Committee to confer also with members of the incoming administration. This Committee also felt,-and I am sure you will agree that it is under an obligation to consult its foreign colleagues as to your government's interesting and important communication.' "I have now been authorized by the American Section of the Committee to accept the invitation proffered by your Government, at such time as it may prove personally practicable for me to avail myself of it, subject, however, to any announced action or declaration by the Mexican Congress, or by any other body authorized in the 8 9 See the statement by Mr. Lamont in the New York Times, Feb. 9, 1921, p. 19. Transmitted by Mr. Lamont to Señor Téllez on June 30. |