The New York herald., 1921-06-09
us. READY TO TAKE
| STERN MEASURES IN
| MEXICAN SITUATION
Intervention Possibility if
Obregon Does Not Guar
antee American Rights.
MUST ACT QUICKLY
Hughes's Statement Means
That 'Watchful Waiting
Is in Discard.
FOREIGN POWERS AGREE
Pointed Out There Has Been
No Effort Made to Meet
Bills Due in Europe.
POWERS AGREE
speoidI Despatch to THE NEW YORK HERALD
New York Herald Bureau,
shtu ctnu n. G.. Juno g.

SpeoidI Despatch to THE NEW YORK HERALD
New York Herald Bureau,
Washington, ID. c.. June By
"Watchful waiting as q policy has
been thrown into the discard and from
now on the United States will move
directly to the purpose of bringing
about a change in the Mexican situa-
ton.
This does not necessarily mean in
tervention, even though the latest
State Department communication to
President Obregon seems largely IN the
nature of an ultimatum. and 1t Is
known the Administration feels there
is no alternative course to that out
lined by Secretary Hughes In his state
ment Of yesterday.
1t does mean, however, that inter-
vention is possibility of the not dis
tant future. This Government does not
desire twill do everything possible
To avoid it-but is determined to In
sist on prompt settlement Of the long
standing account regardless Of what
1t may necessitate.
The United States waits now upon
declaration from the Obregon Govern
ment whether it emphatically does mean
or does not mean the assurances given
Of protection for Americans and Amer
lean property rights. II Mexico does
mean Il the Administration can see no
reason why full commitment In a signed
treaty cannot be given. II Mexico does
not, the issue is drawn.
II has developed that the departments
abatement meant even more than 1t said
when It dwelt on the fact that the ques
tion at dispute had nothing to do with
| administrations in Mexico but was on
betv'eea the American and Mexican ma
tionS
| Decision Up to Obregon.
| This was interpreted here to-day al
a clear intimation to President Obregor
that his continuation In Office had moth
| ing to do with the problem and tina
failure on the part OF the. Mexican Gov
eminent formally to declare Its intea
ton of not confiscating American prop
erty might result in a situation which
would render the Obregon position un
tenable.
The foreign Powers have been sounded
and there will be no objection from
powerful foreign interests to any polio,
which this Government may elect II
Mexico. Even under the Obregon re
gime there has not been the slightest
effort 70 rehabilitate Mexican finance:
or any move made to meet the interna'
tional obligations Mexico has incurred
Foreign creditors and foreign Govern
ments are clamoring for settlements
which the failure of Mexico to adjust
relations with the United States makes
| Il impossible for her to meet.
| Since President Obregon has been ir
office feelers have been put out by the
Mexican Government in the apparent
hope OF arranging foreign mediation II
settling It's account with tho United
States, but they have met with no sue
cess. II also has been made plain Il
| the Mexican Government that Washing
ton regards the affair as one to b
settled directly between the two coun-
tries.
| u. -. to Force Issue.
| The understandings that have beer
reached make It plain that the world
regards the present Mexican situation al
an international thing which must bt
eliminated and 1t is also recognized that
with due ~egard to the Monroe Doctrine
1t Is the province OF the United States
to effect the settlement The Hughe,
statement is a public announcement thai
the United States will not shirk tn,
responsibility.
The hopefulness of the situation ha,
not been increased by the information
received here to-day that the Mexican
Government by decree has Just increased
the taxes on petroleum properties 20 pei
cent. rhis. In addition to the preser
high rate Of taxation. suggests the pos
sibility that corflscation OF oil properties
In Mexico may be approached by thi
method rather than under the provision
Of the constitution.
In spite of this jarring note there is |
hopeful feeling here that a. settlement 4
In sight, and this accomplishment vii
make possible a programme OF helpful
nkss toward Mexico which will be OF th'
greatest advantage to that country. i
is realised that the rehabilitation o
Mexico cannot come about excep
through the extension OF financial ai'
/ fro,,, <hts rotptrv A proQrq NINA 10