Evening star., 1938-04-03
Peace With Mexico?

In consequence of a salutary admiX-
ture of flrmness, candor and conciliation.
Secretary Hull has apparently achieved
speedy adjudication of our newest con-
troversy with Mexico There are impor-
tant bridges to be crossed before final
settlement of the conflict provoked by
the appropriation of American owned
farm lands and oil properties.
The matter Of when and how the fair,
assured and effective compensation de-
manded by the United States is to be
paid is the practical hurdle that must
now be taken, but the pledges of Presi-
dent Cardenas, if his good intent and
categorical undertaking materialize,
guarantee that crisis which threatened
not only to breach Mexican American
friendship, but also to undermine the
whole fabric of inter- American good
neighborliness, has been averted. Mr..
Hull sincerely believes that "a rapid.
satisfactory and equitable solution of the
pending problem between the two coun-
tries can be found"
The policy the State Department pur-
sued to bring Mexico to prompt and
proper consideration of American rights
has been described as change in en-
phasis, but otherwise as the same thesis
upheld by previous administrations.
Formerly. when predecessors of the Car
denas regime sought to play ducks and
brakes with our nationals, Washineton
was wont to say: You can't expropri-
ate-unless you pay!" The Hull doctrine
runs: You may appropriate, if you pay!"
This may seem a distinction without a
difference, but in dealing with the proud,
sensitive Latin temperament American
diplomacy has come to learn, sometimes
too late, that more flies are caught with
honey than with vinegar.
Early last week Ambassador Daniels
was directed to notify President Car
denas that the United States freely
recognizes Mexico's sovereign power" to
appropriate property within its jurisdic-
ton, But we as unreservedly hold, lin
accordance with every principle of inter-
national law of comfy between nations
and Of equity" that there must be ade-
quate compensation for American prop
erty seized by Mexico. simultaneously
Secretary Hull disclosed that informal
handling of the subject, rather than an
exchange of acrimonious notes, was the
m tN - ol, XYa~ ~l~;s
sorting.
On Friday, in almost immediate reac-
tion to Washington's attitude, President
Cardenas formally assured the United
States that Mexico will know how to
honor its obligations Of today and its OBJ
legations OF yesterday" He made en-
thusiastic reference to Mr.. Hulls gen.
erosity in coupling demand for COM
pensation with a concession Of Mexico's
right to appropriate.
This preliminary adjustment of the
farm and oil seizures appears wholly
unconcerned with the abrogation-"de-
ferment" is the term which the Treasury
prefers-of the silver purchase agree
ment whereby we have bought 100000
ounces month of Mexicos white metal.
That step, widely interpreted as a re-
prisal for the oil fields appropriation be-
cause 1t followed Immediately on the
heels Of Mexico's action, is extremely
grave from the standpoint of Mexico's
ailing budget situation, particularly with
respect to the peso. The Hull -Cardenas
appropriation accord also fails to parry
the blow struck at American trade in De-
cember, when Mexico boosted to sky
scraper heights her import tariffs affect
ing a variety of our wares.
Senor Cardenas' message, acclaiming
Mexicans' esteem of our good will and
restraint in the oil fields affair. holds
promise that the silver and tariff con-
troversies, too. can be composed. All
concerned in the negotiations which have
produced this prospect, at Washington
and Mexico City alike, deserve the graft
tude of both countries.