The New York herald., 1921-02-27
BRITAIN MAY CALL
ON U. S. FOR LOANS
TO LATIN AMERICA
Cruiser Off Costa Rica to
Enforce Concession and
Collect Debt Brings
Matter to Head.
CITE MONROE DOCTRINE
Counter Claim AgainstU.S.
for War Debt on Ground
of Our Responsibility
for Neighbors.
WILL INVOLVE MEXICO
Republics Debt of Half Billion
Is Represented by Secur-
tiles Held Across the
Atlantic.
WILL INVOLVE MEXICO
Speciu! Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., Feb. 20. !

Special Despatch to THE NEW YORK HH.ALD.
New York Herald Bureau,
Washington, ID. c.. Feb. 26
The appearance of the British cruiser
Cambrian In Costa Rican waters to
enforce concessions made by the Tinoco
Government, and presumably for the
collection Of debts owing Great Britain.
Washington as an indirect movement
that may involve Mexico. It is also
looked upon as having a bearing on
the British debt to the United States.
and as being a subtle suggestion that
this country has moral duties as we'll
as definite obligations under the Mon
roe Doctrine.
II this country presses Great Britain
for payment of it's debt, 1t is under
stood that England may call the at
tention Of the United States to the
fact that she has money coming to her
from the Latin American countries.
including Mexico, and that on tho
United States rests the duty Of col
ieCllIlS tEeSe QeDtS OI pcILilltlh6 lAciA
collection by force.
In any event It Is expected the British
Will put in as a counterclaim against her
dobt in the United States. the debts owed
10 her from Latin America.
Other European countries holding
Latin American obligations are expected
to follow the lead of Great Britain. with
the result that the United States, i'm
mediately on the beginning of the Har-
ding Administration, may be called upon
to become the debt collector of European
Powers on his continent or abandon the
policy Of til Monroe Doctrine.
A situation presented In this manner
ie expected to precipitate crisis in
Mexican affairs. Mexico will owe ap-
prox.mately s500.000.000, with accrued
interest amounting to about $780,
100000. Most of Mexico's obligations
are held in Europe, and large share
of them In Great Britain. This indebted
ness does not include the interest pay
ments and other obligations to holders Of
Mexican railroad stocks and bonds.
which approximate almost as much as
the Mexican capital debt. and which are
similarly owned largely In Great Britain
and France.
The amounts of Indebtedness which
have been incurred by the smaller Latin
American countries is not known, but
that of Mexico presents a staggering
total which may be saddled upon the
United States either for payment or coll
lection unless this country proposes to
permit possible occupation of Mexican
customs houses by European Powers.
What makes the situation more seri-
Gus Is that the Mexican customs house
receipts up to 100 per cent. are pledged
for the repayment of the loans hoated
by the Morgan firm In 1895 for Huerta.
News from Mexico does not tend to
quiet apprehensions Of Republican lead
srs on whom will soon fall the RESPONSE
billty OF dealing with this fostering sit
uation. The present railroad strike in
Mexico appears to have tied up indus
try generally and Is approaching the
nature of a revolution.
Reports received at the State Depart
ment show that the British Government
presented note to the Costa Rican
Government on December 80 declaring
itself interested In the so-called Amory
concession granted by the Tinoco Gov
ernment to the Lord Cowdray oil In
terests. The note was followed by the
appearance of the cruiser Cambrian In
Costa Rican waters.
Since the Tinooo Government wss
never recognized the State Department
holds that the concession was an inter-
national forgery. 1t Is collecting full in
formation on the subject for submission
lations. There is nothing to indicate
that the British Government plans to
use coercion on the Costa Rican Gov
ernment without consultation with this
Government II Is the suggestion Of
the use Of force In dealing with the
financial problems of Latin America
that has