New-York tribune., 1921-06-13
Force Declared
Only Argument
Mexico Heeds
Ultimatu,n, With Alterna-
tive Clearly Stated, Is
Held Necessary TO Win
Protection for Americans
Delay Imperils Treaty
Impression Given Harding
Will Return TO Wilson'S
Watchful Waiting Idea
By George E. Hyde
Special Cable to The Tribune


Copyright. 1921. New York Tribune Inc.
MEXICO CITY, June 12.-The delay
in bringing the international situation
to definite issue is operating adverse
ly to settlement along the lines pro-
posed by the Harding Administration,
in the opinion Of observers here.
The sentiment, which showed great
confidence in Washington week ago,
has slowly changed, and the belief is
again freely expressed here chat the
United States is about to return to a
policy of watchful waiting
It is generally believed here that the
next move by the Washington govern
ment will have to be an ultimatum, with
ar alternative clearly stated and pos
sibly backed by a show of strength, in
order to receive serious consideration
from the Mexican government.
Gales Backs Obregon
The position of President Obregon
has been strengthened by the arrival
here of General P. Elias Gales, Sec
retary Of the Interior. who has gone
over the situation with the President
and expressed his entire agreement with
the stand which Obregon has taken in
! handling the correspondence with
Washington.
The suggestion that Spain be asked
to mediate between Mexico and the
United States, IN an effort to find a
basis of agreement, is again advanced
editorially in the newspapers in arti-
cles that are believed to be traceable
to Senior Malbran, Argentine Minister
here, who is dean of the diplomatic
corps
Although there is nothing to indicate
that President Obregon will recede
from his original position, it is gen
orally understood that he will make an
effort to pass legislation that is ex-
pected to meet some of the demands
made by the United States government.
One faction Of Obregon's supporters
is known to favor the comforting of
special powers on him by the legisla-
ture in questions of oil and land rights,
so that he could handle these matters
by Presidential decree. An intimation
would not offer satisfactory solution
tc the question is believed to have halt
ed the movement.
New Oil Tax a Factor
The action Of President Obregon in
increasing the export taxes on Pc
troleum products has added to the
seriousness OF the situation, although
it is not believed that Washington has
taken official action on this phase. The
Presidents action was taken because
he wanted to counteract the discussion
in the United States Of petroleum pro-
lection legislation.
General Gales, discussing to-day his
recent trip through the oil districts
said he had found conditions there
very unfavorable to labor, and dis
closed his decision to bring several
producing companies to time for vio-
lating the national labor laws. The
tone Of General Calles's statement is
not favorable to the oil companies and
indicates the Minister'S support Of the
Carranza oil laws.
A report was published here this
morning that the United States had
given Mexican political refugees in the
United States twenty-four hours to
leave the country. The report could
not be confirmed here, although it was
traced to official sources. Pablo Con
zales and General Murguia were spe-
cifically mentioned among the refugees
who had been ordered to leave.