Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-13

The White House spokesman de-
clared yesterday that President COOL
idge Is confident that the difference
which have arisen between the United
States and Mexico. regarding the retro,
active principles alleged TO exist IN
recent Mexican legislation, which may
confiscate the rights of American IN
vestors in Mexico, will all be satisfac'
torily adjusted in due time.
There is a total Of a billion dollars
of American capital invested In Mex.
leo. half of which is in oil or mineral
property. The new constitution OF
1911, with laws pa ssed last December
and signed by President Gales, set up
the claim that all rights to subsurface
nropertv are vested in the national
Government. While there are certain
steps reserved by which claimants OF
vested rights may establish their title
against all assertion of superior title
by the government of Mexico, all
ownership. even so protected. will
lapse at the death of present holders
and will revert to the government
Furthermore, all alien holders OF such
property must agree to waive the
right to protection OF their own sor.
ernments, and must trust exclusively
TO Mexican courts for the protection OF
their rights.
The note of our State Department
which was sent to Mexico january
WINS answered yesterday, but the
nature of the reply has not yet been
made public.
One of the earliest acts of Secre-
tary of State Kellogg upon assuming
the control of the State Department
was to issue a warning TO Mexico
that since recognition or the pIeselll
government Of that country hao peeh
given upon assurances to our COM
mission, Messrs. Warren and PaSne,
no action would be taken which would
ieopardize the vested rights of Amer
leans, established prior TO the ne"
constitution Of 1917. This Govern
ment will continue to support the
government of Mexico only so long
as it protects American lives ana
American rights. and complies with
It's international engagements ana
obligations"
Mexico assumed an air of surprised
injury" to it's national pride at such
language from our new" Secretary
of state. coming as it did when con-
ditions in Mexico were apparently
better than they had been for years.
In reply it has been pointed out that
the Secretary of State Is the voice
of the administration. and that not
only was President Coolidge not
new" when that message was sent,
but that 1t was in line with previous
policies, not only of President Hard
ing, but Of President Wilson. All
the succeeding Secretaries of State
had been equally firm and outspoken
in protecting the rights of American
investors. according to well estab-
lished principles Of international law
This position was clearly taken only
as to the vested right established
prior to the 1917 constitution. under
which fundamental law the legisla-
ton of last December was adopted
It does not question the right of
Mexico, as an independent nation. to
pass any laws it sees At controlling
new investments. or even exercising
the right of eminent domain and
condemning any property for public
purposes, provided full and fair COM
pensation is made in real money be-
fore such condemnation Is perfected
and property seized.
Mexico conceded the contention
under the administration of President
Carranza- A little over a year ago,
Carranza was succeeded by President
Gales. the Liberal, and new declara.
tons indicate that Gales purposes
radical liberalism and nationalism-
Mexico for the Mexicans." Under
these conditions-knownb better to our
State Department than to the general
public-there is understood to have
been a deeper meaning to Secretary
Kellogg's warning. as the expression
Of firmness from the administration,
not merely from 1.-The new Secretary
Of State
Within the last 4S hours Great
Britain has issued q similar warning,
In the interest OF British investments
in Mexico, amounting to some
3s0o, o0c, 900.