New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-17
Obregon's Delay on N. Y.
Pact Seen as Effort to
Force Recognition or to
Bolster Up Government
Huerta Ordered to
Go to Washington
Failure to Swerve Hughes
May BE Followed by
Cry of Dollar Grabbing
By Carter Field


grave concern here over the failure Of
the Obregon government to approve
the recent funding agreement on the
Mexican national debt reached BY a
conference with representatives Of the
bondholders in New York.
When that conference was concluded
on June i6. with an agreement b.
which the 500, 100000 Of interest on
the $500 600, 900 Of debt was funded
into a non-interest bearing obligation.
plus an agreement that interest would
be paid from now on by the Mexican
government on the 100000, 900 prin-
cipal, there was considerable relief
here.
Big Issue in Recognition
II Is true that the State Department
has insisted that the financial agree
ment was strictly one between the bank
ers OF holders Of the bonds, on the
one hand, and the Mexican government
on the other. and that the United
States government was not involved.
Nevertheless, Secretary Hughes has
frankly recognized in Mexico, Russia
and elsewhere that America has in
,terests, and that they should be reeoR-
nized and respected By governments
wherever the interests might be. So
DESPITE the protestations IL has been
accepted here that favorable action by
the Mexican government on the debt
would be helpful toward recognition
CT the Obregon government, though u
has been realized that this alone would
not result in recognition unless tho
other stipulations by this government.
particularly with regard 90 Article 27
Of the new Mexican eonstitution,
should be met.
New spapers just arriving from Mex
leo City carry reports from the United
States 20 the effect that President
Obregon has officially approved the
negotiations in New York between Min
lister Of Finance de Ia Huerta. represent
ing the Mexican government, and the
bondhoiders. "Fl Dcra0crata.' Of Mexico
City. adds that these rumors have been
officially denied. Approval or other
wise Of the agreement, "El D Dimoerata'
odds. has been postponed until De ia
Huertas s return 10 mexico.
Plan Seen in Delay
In view Of reports tonight that De
Ia Huerta has been ordered 20 Wash
inoton 10 confer with the State De-
partment. IL is now thought here that
President Obregon has In mind 20
attempt another flank movement
on the United States government, with
view either OF forcing recognition
cr else. falling 10 obtain that, 10 win
the support Of his own people against
what he will represent TO be a dollar
II Is believed here that the delays
IN Mexico City, with statements by
President Obregon that action by the
Wovican Congress is necessary 70 ap-
proye the funding agreement made ~
Tho Minister Of Finance, and with inc
luther statement that no hurry -
,cedod are part Of a studied ana skill
Tni campaign. The next step 1t rs
tbopcht will be that De la Huerta VIII
ryonose 70 the American government
hat the Mexican government VIII Ap-
nroye this funding Of the interest oi'
The Mexican debt II the United states
recognizes Obregon. - u.uto.
There is no possibility OF Mr Hughes
agreeing 20 this unless something -
Sone also about Article q Of the MeHi-
80 Constitution. There must be
statement from the Mexican govern,
nent Of sort which can be accepted
90 6nal b. this government that there
csr be no confscation Of American ana
other foreign property acquired iegaiIy
before that article Of the Cons'i'u''o"
was adopted.
May BE Propaganda
This has been made clear 20 the
Obroron government several times 80
tbe present move, II II Is correctly IN
.o~rTeted. is either made in the nope
that the United States will weaken OF
q Is made with full knowledge IN al
vance that IL will fail, but with the
;deo that IL will be good propaganda
in Mexico. for the Obregon govern
The last Is believed 70 be the more
Iikolv. as there have been constant re-
royts for some time now from Mexico
T. tho effect that the Obregon govern
,nent could not last very much longer
obregon has been particularly iortu-
note so FAR, according TO Observer mere
wbo have studied the movements
AGAINST him, in the character OF tne
T1cn Who have sought 10 overthrow MS
Continues on psse four