The sun., 1919-03-21
BANKERS PLEDGE
SUPPORT TO MEXICO
Nieto, After Canadian Trip,
Takes Home International
Committees Promise.
CONFERs WITH MORGANs
Carranza Government How
ever, Must Pay Interest on
Republics Debt.

Rafael Nieto. acting Minister of FL
nance in tho Mexican Government. after
q brief trip to Canada, will start on
Monday or Tuesday Of next week for
Mexico City. carrying with him q den-
Mite safeguarding between the rnterna-
tional Compittee of Bankers and the
Mexican Government and pledge Of
cooperation between Mexico and her
creditors. provided the Carranzista Gov
eminent take the initial Btep Of rssum-
Ing interest payments on the republics
debts contracted by its previous Govern
ments. This was learned yesterday from
an authoritative source following Mr..
Nieto's conference with J. p. Morgan
and other members Of his banking arm.
The definite understanding was
reached Mt conference last Monday be-
tween Mr.. Nieto and ten of the Ameri-
can members of the International Com
mittee Of Bankers. Tho bankers had in
tended to make no statement regarding
that important move. but the erroneous
reports that Mr.. Nleto had started for
Mexico City and was returning empty
handed drew the following statement
yesterday from the Mexican secretary:
My trip to New York was not under
taken with the object of negotiating a
loan. made this statement to the press
upon my arrival and desire to repeat Il
now
''It was the purpose Of my Govern
ment to enter into conference with the
creditors OF Mexico in connection with
debts legitimately contracted by previous
Governments.
Incidentally, IN the course Of my con-
versations with New York bankers, men,
ton was made OF n possible future loan
to be applied to tho economic reconstruc-
ton Of Mexico. but this loan Is Of Sec
ondary Importance to the main question
under consideration. and would. Of
course. naturally come up for discussion
later. II at all.
II am returning TO Mexico with the
Impression that my conferences with the
1nternatinal Committee Of Bankers have
been successful in securing n better I'M
Outstanding and cooperation between
Mexico and her creditors.
The matters In reference to Mexico's
foreign debt will take some time to set
tie. and I have never presumed that they
could be solved within few weeks. The
conferences have only begun and will be
continued after further preliminary
studies Of the questions involved are
completed"
The purpose OF Mr.. NiAto's visit In
Canada Is understood TO lie in an ex-
planation TO Canadian bankers OF the
reasons why the Carranzista Govern
ment seized the deposits of branches OF
Canadian banks In Mexico City and of
tho steps his Government proposes to
take to adjust the matter. Whether any
definite action Is contemplated could not
DO learned yesterday.
While the Acting Secretary OF Mexican
Finance will return to his country
shortly with a grasp OF the steps his
Government must take before tho
finances OF that country can be rehaSiii-
tated, II Is admitted that It will take
many weeks TO adjust and settle the
questions involved IN Mexico's foreign
debt. 1t Is probable that Mr.. Sleto will
return TO the United States before mid
summer 10 continue the preliminary con-
ferences. which 80 far have resulted only
in better understanding and an i'm
proved outlook.