New-York tribune., 1919-03-21
Mexico
To Pay Interest
By Bond Issue
Rafaelo Nieto, Finance Sec.
retary, TO Lay Before Car.
rama Agreement Reached
With Bankers i'm Country

When Rafaelo Nieto, acting Secre-
tary of Finance of Mexico, who came
to New York more than a month ago
to discuss with bankers plans for re.
habilitating the Republics finances. re-
turns to Mexico City about April / he
will be able to lay before Presideu.
Carranza tentative agreement reached
with J. P. Morgan and other leading
creditors looking forward to a promp.
resumption of interest payment on the
national debt.
The various suggestions made, it was
learned from his associates yesterday,
took definite form this week at con-
ference between Mr.. Nieto and ten
members of the international Commit
tee Of Bankers, of which j. P. Morgan
is chairman. According to Mr.. Nieto's
friends, compromise has been at
tanned regarding past interest, whereby
the Republic of Mexico may under
take to issue new bonds to cover sp-
proximatcly one-half of the interest,"
which has been defaulted since 1918.
AS soon as this arrangement goes into
effect, provided it is accepted, it is
said that Mr.. Nieto has given assur-
ances that the Treasury will resume
cash payment in full on current in
terest.
Quizzed Regarding Railroads
In his conferences with bankers Mr..
Nieto was also asked what Mexico pur-
posed to do with the railroads which
the government had seized. His reply
in substance, according to his ssso-
ciates, was that the Administrators
did not feel that the roads could be
returned to private control at this
time, asserting that the private con-
panies would be unable to operate them
properly under present conditions
Moreover, the bankers undertook in
the series of conferences, it was ascer-
tanned, to get an authoritative state
ment of the governments attitude
toward industry and foreign cspitsl
Mr.. Nieto furnished much information,
but was authorized to make no pledges
The oil controversy, he indicated.
would be settled by the striking out cl
the retroactive features in the DEGREES,
which foreign interests have termed
confiscatory.
If President Carranza approves ny
Nieto's report, the latter will probably
return promptly to New York TO MAKE
effective his conversations. Before re-
turning to Mexico MIR. Nieto vii! gc'o
Montreal for r day to confer with the
repres natives of three large Capadish
branches in Mexico and TO explain "
them the purpose of the contemplate
new banking legislation and the gen
eral policy to foreign interests OF Inv
government.
Mr.. Nieto Issues Statement
In order to correct misstatemenls
regarding the results of his visit "
this city, Mr.. Nieto made the follow
ing formal statement to the press:
My trip to New York was not undel.
taken with the object of negotistins
loan. / made this statement to sns
press upon my arrival and desire TO IT,
peat it now
1T was the purpose Of my govern.
ment to enter into conference with sns ns
creditors of Mexico in connection Wis
debts legitimately contracted by prev
Gus governments.
Incidentally, in the course Of ~
conversations with New York bankeis'
mention was made of possible fnsu.s
loan to be applied to the economic %
construction of Mexico, but this io:s
IS of secondary Importance to the ms'sS
question under consideration, o. ~
would, OF course, naturally come up ~
discussion later if at all =.
Il am returning to Mexico with -
impression that my conferences wi.
the International Committee Of nsa, s;.,
ers nave been successful in sesun;ss ses;ss
better understanding and coopers''ss
between Mexico and her creditors;
The matters in reference TO m.s ~.
ico's foreign debt will take some un
to settle and | have never presugs.r
that they could be solved within : ~ -.
weeks The conferences have only =
gun and will be continued after fuI:s f.;ass
preliminary studies of the aues''se7
involved are completed"