The New York herald., 1921-01-03
WAIT FOR HARDING,
POLICY IN MEXICO
U. S. State Department Loses
Hope Of Agreement Dur
ing Present Regime.
oBREGoN IS RETIcENT
Defiant Attitude Revealed i'm
His Treatment of All Wash
ington Advances.
Special Despatch to TIE NEW YORK HEnALp
New York Herald Bureau,
ashirslnra ID 4, Inn .

Special Despatch TO TIE NEW YORK HERALD.
New York Herald Bureau.
Washington, ID. C., Jan. 2.
All efforts to bring about a solution
OF the Mexican problem have been
given up by the State Department in It's
discovery that the new Administration
of Obregon is either unwilling or unable
to meet the demands of this Govern
ment
The United States Will insist that by
protocol or treaty the Mexican Govern
ment agree that the provisions Of Article
27 OF the Mexican constitution shall not
be made either confiscatory or retroac-
tive, and that the Illegal concessions
granted in the last hours of the De la
Huerta Administration be rescinded.
The United States will not insist that
Article 81 be taken out of their consti-
tuition. but they viii have to agree that
IT will not be used as a means of taking
away important properties from Ameri-
cans acquired prior to enactment Of the
Carranza decree.
Much hope had been placed in Gen.
Obregon as the new chief of the Mexi
can state, but up to this time Obregon
has not taken any steps indicating his
willingness or desire to meet the United
States
Information received here is that
Obregon will take no action during the
life of the present Administration in
Washington. but has determined to
await the Harding Administration. Gen.
Obregon was expected to take q saner
view of Mexicos responsibilities to the
world than that OF his two immediate
predecessors, Carranza and De la Huer-
IA, yet Mexican officials who had much
to do with the orgy OF concession grant
ing in the last days of the De la Huerta
regime have received promotions instead
of dismissals
There are well authenticated rumors
in Washington that Obregon is negotiat-
ing with other countries In the hope of
securing either recognition or financial
assistance, and that these negotiations
include Japan. In spite of tempting bats
he'd out. however. ii is not believed
either France or Great Britain will ex
tend recognition before action is taken
by the United States The fact that
Germany has extended recognition is not
regarded as important. because Germany
has no special interests in Mexico except
4 desire to secure trade advantages,
while France and Great Britain. on the
contrary. have large outstanding claims.
British financiers who have been un-
able to secure any interest on their huge
Investments for years. nor any account
ing by the Mexican Government, are
using the utmost pressure on their own
Government to bring about some kind
OF n settlement.
The demand by the American Govern
ment that previous confiscations be un-
done and that guarantees be given for
operation of Article 27 of the Mexican
Constitution is q necessay preliminary
TO recognition. The United States SUI
premc Court has held in the case OF
oct ctien.vs Central Leather Company, de-
cidcd March II, 1918. that recognition or
revolutionary government validates the
previous actions of that government.
The recognition becomes retroactive in
character, and in this case would make
impossible any appeal from the confis-
catofy acts from which American prop
crty owners have suffered.