The New York herald., 1922-05-27
BELIEVE MEXICO
PREPARES TO PAY
State Department Officials Re-
gard de La Huerta's Visit
as Good Sign.
Special Dispasca to THE Nrw YORK HERALD

Special Dispatch to THE NEW YORK HERALD
New York Herald Bureau,
Washington. ID. c.. May 20.
State Department officials believe the
approaching visit OF Adolfo de la
Huerta. Secretary of Finance of Mexico.
may indicate eventual acceptance by
Mexico of the similar conditions laid
down by this Goverpment for the recog-
milton of both Mexico and of Russia.
1t is assumed that Senior de la Huerta
will go directly to New York for a
conference with financiers. but the
mystery maintained at the Mexican
embassy concerning his visit suggests
the possibility that he may come to
Washington before having his confer
ence with New York bankers.
Reports received here from Mexico
city to-day indicate the Mexican Gov
ernment is prepared to make repre-
sentations of it's intention of taking care
of its foreign debt and that it already
has decided upon the revenues to be
diverted for this purpose and will at
tempt to inaugurate debate among
American and foreign creditors over
its ALLEGATION.
The State Department has no cog
nizance of the purpose of Senior de la
Huerta's visit to New York and will
not seek any official information con-
cerning it. 1t is assumed. however that
he and President Obregon have been
reading recent notes written by Secre-
tary Hughes on Russia and have the
knowledge that the bankers of the
country will not ask American inves-
tors to risk their money where govern
mental conditions are not approved as
guaranteeing the safety of investments.
In the circumstances it is not believed
Senior de la Huerta has come here on
an idle mission and the hope for an
understanding with Mexico has greatly
increased.
Senior de la Huerta and the New York
financiers know the attitude of the
American Government. That knowl-
edge. it is expected, will make 1t inn
possible for Senior de la Huerta to reach
satisfactory understanding with the
men who are prepared under certain
conditions to lend money to the Mexi-
can Government unless Mexico is pre-
pared to meet the conditions laid down
as prerequisite to recognition.
The only hope of aid rests with pri-
vate capital. That capital will not be
Forthcoming without assurances Of pro-
lection and this assurance can come
only through guarantees of life and
property and recognition of the sanctity
of contracts. Adherence by Mexico to
1t is stated. nullifies any efforts to
reach an agreement with Mexico
According to information reaching
here the recent, conference of Thomas
w. Lamont with the Mexican Govern
ment resulted in an exchange of opinion
concerning the obligations of Mexico.
The Mexican foreign debt amounts to
approximately 100000. 900. not an ex-
ceptionally large sum in view OF Mexico's 8
natural resources. but production in
Mexico is at low ebb and the balance
of trade Is running against her in alarm
ing proportions.
The American financiers are prepared
TO take over the entire foreign debt OF
the Mexican Government and would
probably be prepared to make further
financial advances to aid in the recovery
of the country under certain conditions.
Secretary de la Huerta has been invited
to come to New. York for the purpose of
putting his cards on the table.
Reports reaching here from Mexico
City are to the effect that the Obregon
Government while moving slowly, is
bringing itself into position where 1t
can make the guarantee required by this
Government and the logic of the situa-
tion prompts the hope and belief In high
quarters here that the mission would
not have been undertaken without de-
termination to meet the demands of the
United States.
Ell. PAso. May 26--Adolfo de la
Huerta. Secretary of Finance of Mexico.
arrived here late to-day on his way to
New York. so iii with appendicitis that
friends were prohibited from entering