Evening star., 1922-06-17
AGREEMENT BRINGS
HOPE IN MEXICO
Step Toward Recognition
Seen in Understanding
on Finances.
BY DAVID LAWRENCE.

Agreement between representatives
bankers committee representing the
investment interests of the United
States as well as European coun-
tries is the most important step In
Mexican American relations in twelve
years. 1t cannot but have far-reach-
ing affect On the whole Mexican sit
uation.
Not since the days of Diaz. when
the Madero uprising first tore asun-
der the threads of Mexican finance
and started an era of financial chaos.
has there been such optimism as to-
day. For Mexico's decision to pay
her back debts and resume interest
payments is something which gives
more evidence of the stability of the
Obregon government than a score Of
protestations on the subject OF capac-
ity to govern and earn recognition.
Step Toward Recognition.
Whether it is true or not that the
financial interests have in the last
twelve years been influential in
directing the course of many gov
ernments which have become es-
tranged from Mexico, the truth is
that the settlement arrived at by
Finance Minister De La Huerta and
Thomas W. Lamont of J. P. Morgan
L. Co, as the representative Of the
international bankers who hold
Mexican obligations, will have the
effect of ranging the bankers on the
side of the Obregon government in
it's bid for recognition.
The crux of the situation. of course.
Is in Washington, for until the Unit
ed States government makes up its
mind to recognize the Obregon ad-
ministratiop the rest of the govern
ments of the world will withhold
action. Similarly. the extension Of
recognition by the United States will
mean instantly the recognition by
the whole world.
Land Titles Obstacle.
Mexico's readiness to put ner fnan-
make it difficult for the American
government to delay recognition un-
duly. for, after all, the normal re-
quirements are a capacity to govern
and maintain order and a Willingness
to satisfy international obligations.
There remains only one obstacle to
recognition. 1t is the ambiguity of
the Mexican constitution on the sub
ject of land titles Cranted before the
constitution was adopted. Mexico ha 8
Insisted that the supreme court iE-
terpretations make it clear that the
constitution does not affect contracts
and titles prior to 1917. The Ameri-
can government is not satisfied with
the assurances given, and wants an
explicit statement to that effect to
be embodied in a treaty. This the
Mexicans have, for one reason or
other-mostly national pride-dc cline
to do. But /. is pointed out that the
agreement on financial questions
reached in New York involves gues-
tions on which Mexicans are Ear more
sensitive than the making of a for
NAL treaty.
Moral support Aim
The main object of recognition is to
get the moral support of a govern
ment in a country where loans may
in New York is the forerunner-as it
inevitably must be-of the extension
to Mexico OF financial aid, the ques-
tion of recognition will become aca-
demic. There is. on the other hand,
little chance that Mexico will be
given a loan until the United States
government obtains the assurances
it seeks For American bankers have
promised The Department of State
that no loans would be floated for the
benefit of foreign countries until the
government at Washington had an
opportunity of interposing an objec-
ton. 1t seems certain that. while the
bankers are glad to have had the op-
portunity to clear up past Indebted
ness, they will not Immediately leap
into the realm of larger financial
transactions for the future unless
they know the United States govern
ment intends to throw the full weight
of its influence to the support of the
Obregon government, whose life will
be short lived without financial aid
as well as recognition.
The general opinion here is that
Mexico is determined to straighten
out all her external relations, polit-
ical, financial and economic, and that
the agreement In New York Is the
precursor Of consent to treaty of
amity, which will mean automatic re-
cognition. OF the Obregon govern
ment. -