Evening star., 1925-08-30
BR|T|SH-MEX|CAN
MOVE AFFECTS j. S.
Trade Rivalry Resumption
Expected as Result of Dip
IOmatic Relations.
By Cable to The star and New York World.

BY Cable to The star and New York World.
MEXICO CITY, August 29.-Al-
though apparently well known in New
York circles yesterday. the notice is
sued by Aaron Saenz, Mexican minis
ter of foreign affairs, announcing the
renewal of full diplomatic relations
between Great Britain and Mexico
was entirely unexpected here.
The recent extraordinary rise in
Mexican bonds in Wall Street has
been attributed locally solely to the
imminent opening Of Mexicos bank of
issues, plus what is now believed to
be the intention Of the Gales govern
ment to commence at an early date
the renewal of service of Mexico's
external obligations in accordance
with the Lamont-De la Huerta agree
ment.
Not even the best informed circles
had an inkling that the British -MeXi-
can situation was on the point of a
friendly solution of it's problems, after
upward of 10 years of official estrange-
ment. The result is that Mexicos sit
uation today, bearing in mind the
foregoing set of circumstances, pre-
sentS brighter picture financially
and economically than for many
years.
Effect ON L. S. Interests.
1t would be absurd to pretend that
British recognition has not or will not
have a material effect upon American
interests here.
For years American business has
been running a practical monopoly of
Mexican trade, but it must be remem-
bered that Britain has capital invest
-,
total, roughly, $780, 900 ster-
ling, and although these have been so
long dormant they still exist and the
natural presumption is that they will
come to life again.
Nothing official is yet known here
of the basis upon which recognition
has been renewed, but all circles be-
lteve discussion between the Mexican
and British foreign offices must have
been largely concerned with the finan-
cial obligations of Mexico to Great
Britain and that some practical
method for a settlement of these has
been agreed upon.
1t is reasonable to suppose that the
British foreign secretary, especially
as the present Downing street gov
ernment is ultra is not
likely to have accepted terms for the
settlement of Mexican obligations less
favorable than those extended by
Mexico to the United States, and
sight must not be lost of the fact that
European, and especially British and
French money, comprises the major
portion of Mexico's external obliga-
tions.
For months British interests have
been in the friendly care of the diplo-
matte channels of the United States
in Mexico and it has always been pre-
sumed that both the Washington and
London governments have been work
ing in entire harmony as regards
Mexico.
Return of Rivalry.
The natural result of the British
resuming the care of their own inter
ests must be a return of rivalry, both
commercial and otherwise, for British
merchants are already anticipating a
renewal of the flow Of their goods
towards Mexico.
A renewal of British relations, as
far as the United States is. concerned,
becomes particularly interesting at a
time when a definite policy of the
United States towards Mexico, as a
result of the kellogg incident, is
Anxiously awaited, and nobody doubts
hat the official renewal Of the friend
ship of Downing street will have an
mmeasurably strengthening effect on
the Gales government.
Furthermore, nobody doubts that
The result of the whole matter lies in
the present financial stability of the
Gales government to make definite
proposals regarding the obligations
due to Great Britain, and the latter's
acceptance of MeXico's claim that she
is now able to make some arrange
ment which is likely to be lived up to.
Copyright. 1925.)