The New York herald., 1921-06-28
u. S. WILL ACCEPT
MEXICAN CHALLENGE
Will Insist on Treaty With
Pledge Of -Confiscatory
Character of Article q.
RECOGNITION WILL WATT
Obregon Statement Considered
Propaganda-Taxation Meas
ures Watched.

Special Despatch to THE New YORK HERALD
Washington, d. c.. June ~.
President Obregon of Mexico has is
sued a challenge to the United States
Government and it will be accepted.
That is the Interpretation Government
leaders place to-day on the statement In
behalf of Mexicos policy toward the
United States which the Mexican Presi-
dent issued this morning through the
medium of New York newspaper
1t was intimated plainly. but without
formal comment, that if President OBJ
RECON wants to assure the American
public that the confiscatory Article ~ of
the Mexican constitution is not to be
retroactive, the best way OF doing so is
to enter into formal agreement to
that effect with the American Govern
mert.
The Obregon statement was regarded
as well formulated propaganda, and 1t
is understood here 1t has been in prepa-
ration ever since George T. Summerlin.
American Charge d'Affaires, suggested
to President Obregon that he enter into
treaty of amity and commerce with
the United States. The familiar manner
In which events of American history are
treated In the statement are regarded
as evidence that some one more fanlil-
lar with American affairs than Presi-
dent Obregon gave expert assistance.
While department officials interpret
the statement as an effort on the part
OF President Obregon to fight the WASH
ington Government through publicity
and therefore Indicative of his refusal
to enter into treaty OF amity and
commerce, as suggested. special interest
! centred on that part of the statement
which refers to Article 81 of the MeXi-
can constitution
mot only have we made repeated
official declaration that Article 27,"
says President Obregon. would not
be given retroactive effect. but we have
forbidden any action whatsoever that
fnght give any such appearance"
In presenting it's case to Mexico the
State Department has stressed the neces-
sity of reassuring the American people
On that subject. 1t was made plain to-
day there will be no recession. The State
Department takes cognizance of the fact
that similar assurance was given by
President Carranza to this Government,
yet DEGREES were entered by him making
the offending article retroactive and
confiscatory.
In answer to his suggestion concerning
Article XVII. President Obregon again
will be told by Mr.. Summerlin that the
United States is not dealing with any
particular administration in Mexico. 1t
is dealing with the Mexican people
through whatever government happens
to represent it at the time the arrange
ment is made.
No verbal assurance concerning the
Interpretation to be placed on Article
XXVII. will be accepted. III President
Obregon means what he says 1t Is the po-
sition of the United States that the under
standing may be written into the pro-
posed treaty without violence 20 the
feelings of Mexicans Without II there
will be no treaty and no recognition.
For the time being no action will be
taken by the United States. Negative
action hints at "watchful waiting" but
it is 4 policy that will press harder
and harder upon any existing govern
ment in Mexico. So long as American
property and American lives are safe
guarded it is believed there is no ne
cessty OF pressing a settlement with
President Obregons Government. 1t is
not the policy of Washington. however
to allow things to drift interminably.
Meantime the State Department is
carefully examining the taxation meas
ures which the Mexican Government Is
promulgating. The representations made
by oil men that excessive taxation is
merely another form of conhscation will
receive minute attention. 1t is recog
nizcd that taxation measures that apply
to all ne matters within the sole prov
ince of the Mexican Government