New-York tribune., 1922-06-17
Agreement Is Reached
Insuring Interest on
Bonds and May Lead
Finally to Recognition
Railroads Go Back
Into Private Hands
Approval of President
Obregon Awaited on
Huge Financing Scheme

A.. sgresment determining the status
,,3 DISPOSITION 81 Nexico's external
~, q ssooooo.Ooo srd of interest in
s,i,s. since 1914 amounting 10 $780,.
sY0o0 vas signed at o'clock last
,.ss, ~ Minister % Finance Adolfo
Z, "a Huerta ON behalf Of Mexico and
tv Thomas W Lamont FOR the interna-
a,-a committee Of bankers Represent
,.r the security holders.
The principal provisions Of The set
,,zsnt, intended 20 rehabilitate the
rrsbli,'s credit and restore her to
rood standing in the money markets
n ,hs world. arc that payment Of in
,srsst shall BE- resumed on January .,
r.,. snd shall be- continued, with rc-
lance upon special funds. until five
Years later when full service charges
{, the loans shall be assumed; that
ass payments Of interest in arrears
cal be waived end that this obliga-
.ta. part ~ witch is virtually can.
ru.d. shall be amortizod over period
=, years; and that the railways be re.
tuned - private management, the
Mexican government guaranteeing by
l-!orement The railways debt not now
90 guaranteed.
The agreement was forwarded 70
President Oregon ~ Mexico City last
igat for his approval Its effective
ness will slso depend upon acceptance
BY the security noliers. who will he
Invited by 'hc committee 20 deposit
;i,iI bonds with H.
To Hasten Recognition
1hs n.sn IS the first step toward res.
'ors'on of Mexican credit 70 an i'm
proved basis The second step. from
tse standpoint Of the American mar
let. viii be recognition of tho Obregon
sniasirahon bv the United states,
t7l The debt settlement "a expected 70
irsnsnce that event ~ an Important de
gree The rrisrstandinr g., that Ne,
irs ri'l ~ 10 eoSt =, new lo9r , O.
a,t t1at bankers woul1 TOOK u1fivor-
sh.r unc7 farh .r ~ tc1 pl3r 20
recognition
Tho readiness Of MeHco TO assume
t1e Obligations of her external debt.
a. s.gralizel IN the agreement. IS
counted upon 70 have great effect IN
hasfening ignition BY several other
Great Britain has based rs
fsfasal 90 recognize President Obrecon
Itrv largely upon the anomalous posi-.
ilon of the Mexican foreign debt, onc
nance. Belgium and Switzerland
other major powers that have Win
held recognition. are said 20 have been
similarly motivated Germany and
Holland are the only two nations whose
5ondholders are represented on the
committee that have roc
'Enlzed General Ohregon.
Concessions or Both Sides
Senior dc Ia Huors1 made no formal
I'atement on the settlement, deferrine
N this matter 20 hrs government. but
declared that 80 reflected an amicable
sreerent. He did not regard II as
Iepresentinc a victory for either party
q the negotiations. emphasizing that
concessions had been made bv both
tdes. He explained that he had fol
loved ii- instructions from President
obrsgon step bv step throughout the
negotiations but that there were a
few clauses that would have 20 be re-
viewed by the latter. The details of
The agreement were immediately trans
n',ed 20 the Mexican capital and the
decision Of President Obregon rs OK
rec'ei soon
Nr Lamont. In commenting upon the
settlement. said that the best Of feel
!-g had prevailed throughout the nego-
ti'.ons ard that senior De Ia Huerta
had handled q difficult situation IN
lcortnus1 on paes iouD