Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-27
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

verting and educating the Indians Of
| Upper and Lower California-then a
| part of the territory of Mexico, the
| colony of Spain.
| In 1912. the principal of this fund
was transferred by decree of the
| Mexican Republic. into the national
| treasury (confiscated). but the Mex
| lean government contracted to pay
| interest on it in perpetuity TO the
| church. Six years later Upper Cali
| fornia was ceded to the United States
by the treaty of Guadalupe Hildago.
ending our war with Mexico. Then
Mexico ceased to pay to the Cath
Ole bishops the pro rata of Upper
California; share in the interest
nor was it applied elsewhere.
Our Government, upon appeal from
the bishops of California, protested
and the result was that an agree
ment was entered into under which
both countries appointed commits
sioners to adjust the claims. but the
commissioners failed to agree.
Thereupon, in 1858, by agreement
of the United States and Mexican
governments. Sir Edward Thornton.
British Ambassador to the United
States, became arbitrator, and I'm
1875 he found that back interest
to the amount of 100000 was due.
which he directed Mexico to pay I'm
gold to the United States for the
bishops of California. Mexico paid
it. That covered interest only up to
1868, when Thornton had undertaken
the arbitration.
Mexico refused to pay beyond the
thornton award and withheld inter
est accruing from October "a. 1868
In May 1902, both governments
agreed to submit the dispute to The
Hague tribunal of arbitration. upon
two pOints-(1l whether the matter
was res Judicata, by reason of
Thornton's Awards if the nav
ment of the S100,O 600 settled an claims
Tor all time; (2) whether the claim
was just.
The United States selected as its
aroltrators on The Hague court Sir +.
Frey or England and Prof +. de Mar.
tens OF the Russian council of foreign
diIdIFS. Mexico chose Prof ASsOr and
FfoT. Lohman of Amsterdam. These
TOUR chose Prof. Matzen of Copen
haSen as umpire. After months of
consideration, The Hague court unani
mousiy decided both counts i'm favor
ol the United States claimants but
decreed that, instead Of gold payment
could be made in legal tender Nfexi
can money. 1t was so paid. Then in
terest was paid throughout the Por
Hrlo DlaZ administration IN TO the
revolution in 1911 and for Two wears
thereafter. Today there is pendin~
before the General Claims Commission
the claim for accrued interest from
l9I5 up TO 1925, amounting to S279
os9.e', with accruing interest there
after. in perpetuity
i *
Why was that interest paid up to
1918, TWO years after the expulsion of
Porfirlo Diaz? Because in 1908
treaty of arbitration was negotiated
between President Roosevelt and
PRESIDENT Dlaz, to run for five years.
and the five years expired on June 81.
l9l5-and so did the payment of in
terest.
The treaty in Article l provided that
dIHerences which may arise. whether
Oh iegai nature or relative to the in
depreciation of the treaties existing
between the two contracting parties
ana which may not have been possible
TO settle by diplomacy. in case no
otnef arbitration should have been
agreed upon, shall be referred To the
permanent Court of Arbitration es
taohshed at The Hague by the conven-
eioiA VI %VlH July, 1899. PROVIDED Jhdt
they do not affect the vital interests.
the independence or the honor Of the
contracting parties and do not preju
dice the interests of third party.
Article III confirmed all details of the
treaty of Guadalupe Hidalgo
AS the Pious fund interest had al
ready been adiudicated at The Hague.
Mexico needed no warning To- know
that any default while that treaty was
alive would go To the same tribunal
under that precedent.
The revolutionists have refused all
efforts of the United States to make
a new treaty of arbitration to succeed
the one expired in 1913.
X * 4 4
Our first arbitration treaty was
made with Great Britain in 1897, but
the Senate refused to ratify it, The
Roosevelt treaties were ratified only
with several Senate notifications. in
Guiding the elastic clauses eXempting
questions of national honor" etc.
In 1911 President Taft undertook to
correct that senatorial looseness, so
as to include ali questions which We're
justiciable under defined principles of
law. but the effort was baked by the
Senate and the President gave 1t up
Copyright. 1927, b. Paul V Collins