New-York tribune., 1921-08-24
Strong Belief in Washing.
ton That Conference
Will Bring About Solu-
ton of Vexing Issues
Agreement Likely to Lead
TO Settlement Also Of
+ MIDDLE Over Article 27

WASHINGTON. Aug. 23-Recogn-
tion Of President Obregon's govern
ment, carrying with it complete solu-
.ioa-st least for the time being-of
the Mexican problem which has been
hsrving the United States and en-
barrassing this country in its relations
with the world since the collapse of
Porforio Diaz in 1912, is expected soon,
according to reliable information just
received.
The situation. of course, is entirely
il the hands Of President Obregon. He
may become obstinate and refuse to
make the motions which. if made,
would solve the problem. The strong
Indications. however, according to ad-
vices just received from Mexico City,
are that ne will go far enough to meet
Secretary Hughes, and that for the
first time in practically ten years our
relations with the republic to the south
will be happy.
Two big stumbling blocks have been
in The way. One of them Is the Mex
ican governments intention, as ex-
pressed by law passed by their Con-
gress, 10 put a confiscatory export
duty on oil. This, in effect, amounted
% conhscation Of the oil properties
owned By Americans and other for
signers in Mexico. The other was
Article 27 OF the new Mexican consti-
tuition. This ignored the established
principle that laws regarding owner
ship Of property could not be made
~ IS
confscate subsoil properties, looking
particularly of course, to oil and min
erals, underlying lands owned in fee
simple prior to the adoption of the
constitution.
Tax Agreement Believed Certain
So far as problem No. l is con-
cerned, the end is in sight. AS an
rclnced to-day, a conference is being
arranged between the American eli
operators and the Mexican government
regarding the export tax. 1t is ex-
Eected confidently here that this con-
ference viii result in a satisfactory
adjustment of the question. This is
especially true in view of the comment
Of President Obregoa On ths proposed
conference received in press dispatches
to-day. Obregon is apparently pleased
at the prospect of a satisfactory com
promise with the oil men, and il that
i accomplished the American State
Department will be equally pleased.
assuming ir advance that this is dis
15ssd OF satisfactorily, which apparent
y there is every right to hope for,
Tasge remains the vexatious question
raised by Article q of the new consti-
t,'iol
is.s gets right back 10 the offer
fc nh1eocr ~,
Secretary Hughes some months ago.
!. rat time ne proposed that instea d
T. recognizing the Obregon goyernm =, t
'or7ia,ly, another course should be
r7r.1ed. This was that q treaty
s1or.d be negotiated between the
lased States and Mexico which would
2sseguard the rights Of Americans in
Aexico, particularly with a view to
ts.s Article 81 OF the Mexican consti-
t-t.oa.
ohregon for Recognition First
vas proposed at the time that the
anal negotiation ani signing Of the
treaty would in Itself be a full recog-
9iH5r Of the Mexican government and
%oald mean naturally q resumption Of
diplomatic relations. The Obregon
government took exception to this,
ro~eyer, insisting flatly that the rec
sgrition Of Obregon should come first,
ard the consideration of such a treaty
es was desired by this government
saould come afterward.
lheTe came the impasse. This gov
srHI'@nt insisted that 1t would recog-
.ize anv Mexican government 70 which
there was no other obvious objection
Ea'cn recognized comp etely the lights
9. american citizens in Mexico. No
crJecuon to such recognition Of
american rights was raised by the
vSregon goyernnaert, the only point
oelng one Of pride. General Obregon
wanted 10 be recognized first and to
sreat afterward.
lns reason Gableness shcwn by the
ooregon government in the wish to
compromise rith the American oil op-
.rasors, taken together with confiden-
~ information reaching Washington
ron Mexico City, is regarded here as
.'o,kiag strongly to an attitude which
F,n not long stand in the way Of cor
einc'ng the other step on which thu
government has insistcd-the abroca-
fContisusd on paas fcsr)