New-York tribune., 1921-09-01
Last Barrier TO Rcsunp.
ton of Relations With
U. S. Removed by Court
Ruling ON Oil Issue
Decision PROTECTS
Americans Rights
Action of the Republics
Tribunal Achieves Pro-
posed Treaty Demands
BY Carter Field

'-i''A>N YIN, aug 3l.-RecOgni-
tlon of the Obregon government bv the
United States is on the verge of accom-
pllshment to-day. The action of the
Mexican Supreme Court in declaring
unconstitutional Article 27, under
which mineral and oil rights were con-
fiscated by the Mexican government, no
matter when acquired has removed
practically the last barrier hating the
resumption Of cordial relations between
the two republics. z
AS pointed out in The Tribune last
Wednesday, it has been realized here
and in Mexico City that the sentiment
in both the Harding and Obregon ad-
ministrations was such that recognition
was practically at hand. but to-day's
news from the Mexican capital is the
most optimistic, so far as friendly re-
lations between the two countries are
concerned, which has developed since
the fall of Porhrio Diaz.
Court Ruling Most Important
The decision by the Supreme Court
is more important, even than q similar
action by the Mexican Congress- In
the first place, even granting that the
Mexican Congress had the right to
nullify the Mexican constitution, the
next Congress coming along might
easily repeal the action of the present
Congress, whereas a Supreme Court de-
cision will have relatively the same
permanence which attached to a Su-
preme Court decision in this country.
The decision of the Mexican high
court nrilifies a provision which had
forcement of which has hung like a
sword oyor the nccks of the American
cal operators in Mexico since it vas
adopted. This provision set forth that
all subsol rights, such as minerals and
oils, belonged to the state, and that
ownership of property in Mexico ap-
piled only to surface rights. This gov
ernment at once protested taking the
view that it might be within the rights
Of the government OF Mexico to pro-
vide that government land granted for
concessions after the cate of that con-
sttution might be so restricted. but
-
be adopted without confiscating the
property of American citizens.
Property Rights Big Issue
"The fundamental question which
confronts the government Of the United
States in considering its relations with
Mexico" said Secretary of State
he had proposed a treaty with Mexico
"is the safeguarding of property rights
against contiscation. Mexico is free to
adopt any policy which she pleases with
respect to her public lands, but she is
not free. to destroy, without compen-
sation, valid titles which have been OBJ
tanned by American citizens under Mex
lean laws"
This question is vital" he said
further. because Of the provisions in
serted in the Mexican Constitution pro-
mulgated in 1917. If these provisions
are to be put into effect retroactively
the properties Of American citizens will
be contiscated on great scale. This
would constitute an international wrong
OF the gravest character, and this gov
ernment could net submit to it's accom-
plishment."
"This government has proposed
treaty of amty and commerce with
Mexico" he further said, "in which
MeX'co Will agree to safeguard the
rignts of property which attached be-
fore the Constitution of 1917 was pro-
mulgated."
Accompsishes Treaty Proposals
"The quesson OF Yecognition," Mr..
Hughes pointed cut, "is 4 subordinate
one. but there VIII be no difficulty IS
to this, for the making of the treaty in
proper form will accomplish the lecop-
milton of the government that makes
it,"
The decision of the Mexican Supreme
Court, it was pointed out to-day. re-
li.eves absolutely the only point which
Was made in the proposals of this gov
ernment in June. 1t acomplishes what
was demanded in the treaty proposed
by Secretary Hughes.
The decision, therefore, is regarded
as removing the last bar to recogni-
tion, although this government may
still wish to include in treaty a
statement as to American rights now
safeguarded by the court decision.
In the absence of the official text of
the Supreme Court decision, official
Continued page threc)