Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-07-07
DIRECT DEALINGS
FAVORED BETWEEN
TWO GOVERNMENTS
Arredondo Informed That
Carranza's Proposal Is
Acceptable to u. S.
LANSING IN CONFERENCE
WITH PRESIDENT WILSON
Virtually Completes Draft of
Formal Note Which Is to Be
Sent to Mexico.
WILL BE READ TO CABINET
Means OF Giving De Facto Head
Material Aid in Restoring Or.
der May. BE Found.
LANSING IN CONFERENCE
WITH PRESIDENT WILSON
WILL BE READ TO CABINET
Means OF Giving De Facto Head
Material Aid in Restoring Or
der May BE Found.

WASHINGTON. July 6.-Tho do
TACT" government of Mexico was in
formally notified tonight through
Elseo Arredondo. ambassad .desic-
nate. that tho United States welcomed
General Carranzas proposal to adjust
all pending differences between the two
governments by direct diploma tic neeo-
tiation.
Mr.. Arrcdondo was informed of the
American governments attitude in a
conversation to-day with Secretary
Lansing. after the latter had con-
ferred with President Wilson. Later
formal note Will he sent Mr. Lans
ing virtually had completed a draft
of the communication tonight, but II
may be read to the Cabinet tomorrow
before 1t is delivered
Immediately after the Cabinet meat
ing. Secretary Lansing plans to leave
for months vacation Counselor
FOLK VIII act in his absence and meet
Mr. Arredondo in the informal dis
cusSions at which solution of the
Mexican problems will be brought.
lt was evident at the State Depart
mcnt to-day that officials believe n
means of giving the de facto govern
ment material aid In restoring order
throughout Mexico may be found soon.
1t is known that the pacific nature of
the latest Mexican note is construed
mere as indicating that General Car
rama. besides being impressed by
American military preparations. has
been deeply influenced by the pressure
and argument brought to bear on him
by friends in the United States. by
European diplomats in Mexico City.
ana particularly by representatives of
many or the Latin american powers
DISCUSSIONS MAY TAKE
ON WIDER SCOPE
While the immediate purpose of the
negotiations In which Secretary Ian
sings note Is to be the first step win
be the evolution of some plan for
tranquilizing the border regions, the
discussions may take OH Il wider scope.
There Is little doubt that Mr.. Are
dondo received the impression from
Secretary Lansing to-day that il ade-
quatc guarantees as to the security of
American and other foreign interests
In MeXico could be secured, the Wash
inSton government believed it possible
that the financial aid SO greatly needed
ny the de facto authorities could be
found. Details can only be worked ont
by protracted discussion.
Some time ago. 1t is understood. N
suggestion that the Washington gov
crnment would encourage American
bankers to go to the rescue of tho do
tacto government was made through
ihdircct channels. At that time Gem
eral Carranza, who had not felt the
pinch of poverty which now threatens
his government with collapse rejected
the suggestion.
Events clearly have proved the fail.
ure OF the first chiefs hopes to re-
establish orderly government unaided.
officials here believe. and he is thought
now to have reached the point where
nc Will make proper guarantees I'm
order to secure American capital
Counselor Polk hci. ..rence
late to-day with Henry T. Fletcher.
designated to be ambassado- to Mex
leo, and Paul NJ. Warhurg, OF the Fed
eral Reserve Board
GREAT sIGNITICANCE
ATTACHED TO CONFERENCE
The object OF the meeting was not
disclosed, but great significance was
attached to 1T as indicating that tho
State Department had found il con.
venient just ut this time to inquire as
TO the probable attitude OF American
bankers, and as to the disposition Of
the Federal Reserve Board itself to-
ward lending such aid as might be In
It's power. to the Mexican government
No statement could be obtained as TO
the nature OF the financial project that
may be in contemplation.
Secretary Lansing would not discuss
the terms of the note he Will forward
to the de facto government approving
the suggestion for direct diplomatic
aegotiations to find solution OF the
difficulties in which the governments
have become involved. 1t is believed
however. that it will lay great stress
upon the friendly purposes OF the
United States. and intimate that any
plan OF action that may be suggested.
which VIII insure the security Of tho
American border. will find ready ac-
ceptance in Washington.
Mr. Arrendondo said tonight that
while he had general instructions from
his government to discuss with the
state Department the points on which
there is disa greement. he would await
new. orders from Mexico City before
Undertaking the proposed negotiations.
lie added that he did not expect to
take up the question OF arranging
credit for his government. but would
leave that to DR.. Alfredo CaturegIi,
Ganeral Carranza's financial agent, sta
Loned at New York.
II Is believed here that the question
OF constructive measures to stabilize
the Mexican government will come UP
before the conversations have pro-
crossed very far The Washington ad-
is understood to be as
firmly convinced as ever that euro
for tho lawless conditions in tho border