Omaha daily bee., 1921-05-11
u. S. Policy
In Mexico
Determined
Stand, So Far As Known,
Makes Recognition of Re-
public Contingent Upon
Restoration of Order.
Conditions Improving
By ARTHUR SEARS HENNING

ny AN1 1UN SEARS HENNlNlS.
Chicago Tribune Omaha Bee Leased Wire.
Washington, May 10.-The Mex
ican policy of the Harding admin
istration has been determined, but
the president is not ready to an
nounce it, according to an authorita-
tive statement made at the White
House today.
The policy, so far as It has become
known. makes the recognition of the
Obregon government contingent up
on demonstration of the restoration
OF order in Mexico, evidence of the
adequate protection OF Americans
and their property, guarantees of re-
spect for valid American property
rights and agreement to satisfy
American damage claims.
Negotiations have been in prog
ress for some time between Secre-
tary of State Hughes and the
Mexican foreign Office with a view
to an understanding with Obregon
warranting American recognition of
his government. President Obregon
appears to have manifested consid-
cradle stubborness in resisting COM
pliance with the conditions of
recognition and the outcome of the
negotiations is still in doubt.
Consuls Summoned to u. 5.
When the difficulties in reaching
an understanding with Obregon be-
gan to materialize Secretary Hughes
summoned George Summerlin, the
American charge daffairs, from Mex
leo City and kept him here couple
OF weeks advising with him on the
situation. Many of the American con-
suls in Mexico also were brought to
Washington to report on actual
conditions with reference to pacifica-
ton OF the country, the protection
afforded Americans and interference
with American oil and mining rights.
President Obregon opposed Secre-
tary OF State Colby's proposal that
a treaty be negotiated providing for
the settlement of all matters at is
sue between the two governments.
1t is understood that the Harding
administration is not disposed to in
sist upon a treaty, but would be
content to embody the understand
ing in an exchange of diplomatic
notes and that it is toward such
consummation the pending negotia-
tions are proceeding.
Conscientious discharge of interna-
tional obligations by Mexico is an
other matter upon which the Har-
ding administration presumably will
insist, in view of the firm attitude
adopted by Mr.. Hughes in dealing
with Panama in the boundary dispute.
This would mean that the United
States would not tolerate reputation
OF the Mexican foreign debt, includ-
ing the loan negotiated in France
under the Huerta regime.
Conditions Improving.
There appears to have been
greater measure of safety accorded
Americans in Mexico since the fall
of Carranza and Americans have
been returning to their properties in
there in large numbers. The killing
of Americans has not ceased en-
tirely, however, such murders be-
ing reported to the State depart
ment frequently.
Up to date, satisfactory evidence
has not been forthcoming that the
Obregon government intends to
abandon the Carranza policy of con-
fiscation of such American and other
foreign oil and mining properties as
the Mexican government desires to
appropriate on the ground of illegal
title.
Secretary of the Interior Fall re-
Gently occasioned considerable sur
prise by charging in letter to Sem
ator Lodge that the British govern
ment is double-crossing the United
States in dealing with the Mexican
oil question. He said that the
British government officially is sup
porting the American governments
protest against the conhscatory poll
cy, but that the Aguila company,
owned by the British government, is
conniving with the conhscation poll
cy to its benefit and the detriment
competing American oil interests.
Britain Denies Charges.
The British embassy Immediately
submitted to Secretary Hughes de-
NAL of Secretary Falls charges. 1t
was stated that the British govern
ment does not own the Aguila COM
pany. The closest it ever came to
such ownership was during the war
when the British government COM
inand >red all British shares OF stock
in thf Royal Dutch She'll company
which controls the Aguiia company.
Subsequently the British govern
ment sold these shares of stock and
thereby divested itself of any inter-
est in the Royal Dutch Shell. 1t
was explained that it was after such
withdrawal of British interests that
the Aguila company adopted an at
titude at variance with the position
of the British government in con-
nection with the Mexican oil oues-