Evening star., 1938-11-13

me gOOU-nelgnOOT pOLlCy OF
the United States has been SeUer-
ly tested BY the action OF the
Merican government in erpropri-
alton OF farm and oil lands.
Merico repeatedly has declared
that proper reimbursement Mould
be made, but has made, no m,oUe
hitherto to carry this pledge into
effect
By the Associated Press
The State Department disclosed
last night that the Mexican govern
ment had agreed to make an initial
payment of sl,0000O0 next May in
settlement of claims for seized Amer
ican farm land, and additional an
nual payments of not less than ST.
100000 until all adjusted claims
were paid.
The agreement was reached after
long controversy that threatened
to impair relations between the two
countries.
A Joint tWo-man commission will
begin work December / in Mexico
! City to adjudicate the claims of all
Americans who have lost agrarian
property since 1927 under Mexican
appropriation laws. 1t must COM
plete its work by next May 81, and
any claims unsettled then will be
submitted to third person who
must reach a verdict within two
months.
Commissioners Named.
President Roosevelt announced he
had chosen Lawrence M Lawson of
Ell Paso, Tex, as the American COM
missioner to evaluate the claims,
while President Cardenas was under
stood to have named Gustavo P.
Serrano as the Mexican commits
sioner. The two men now form the
International Boundary Commits
sion between the United States and
Mexico, and have worked together
on joint commissions for many years.
There was no commitment by
Mexico to discontinue future seizures
OF American-owned lands.
Notes made public by the State
Department dealt solely with agrar-
ian claims for s10.132.388. which
amount is generally expected to be
scaled down.
They made no mention of losses
arising from Mexico's seizure last
March OF American oil properties
valued by their owners at between
s125 goo 900 and sl75,0O0,00O and by
the Mexican government at about
$4,000 600.
No Precedent to Arise.
The Mexican government specified
that the farm land agreement should
| establish no precedent for settle
ment of any other claims.
The terms of settlement were put
forward by Secretary Hull on No.
vember 8 following more than two
months of oral negotiation between
Ambassador Francisco Castillo Ma
jera and Undersecretary of State
Sumner Welles and Secretary Hull.
These negotiations were temporarily
laid aside for fortnight during the
September crisis in Europe.
The Mexican note agreeing to
these terms was sent from Mexico
City, under date of yesterday, by
Eduardo Hay, foreign minister, fol-
lowing prolonged conferences with
President Cardenas.
In advancing his proposal, Secre-
tary Hull told Mexico that continual
ton OF the controversy must seri-
ously impair the friendly relations
between the two countries" Nego-
tlatlons had been deadlocked
throughout the summer and fall by
Mexico's refusal either to suspend
seizures or earmark a definite sum
to pay for lands previously taken.
Mr.. Hull said:
MY government has a particular
desire to safeguard friendship with
Mexico not only because Mexico is
one OF its nearest neighbors, but on
account OF the many ways in which
eVer-lmproving relations, in the full
est sense, between the two countries
could be complementary and mu-
tually beneficial"
Issue at Lima Threatened.
At one stage, the controversy
threatened to come before the forth
coming eighth Pan-American Con-
ference. meeting December 9 at
Lima, Peru, which Ambassador Ma
Jera and Secretary Hull both will
attend
The third member of the Claims
commission, If needed, will be Sc
lected by the permanent commits
sion established here some years ago
under the so-called Gondra Treaty
OF Arbitration. He would be from
neutral country, his salary and
expenses to be borne Jointly by
Mexico and the United States.
The principal features of the
agreement are the speed with which
the commission will begin and finish
II work, and the substantial sums
Mexico will pay from quick liquida-
tlon OF claims. Claims commissions
usually are ponderous bodies which
meet irregularly and sometimes pro-
long their duties for many years.
At its concluding sessions, the
commission will fix the amount of
annual payments Mexico must make
IN accordance with Mexico's ability
to pay, but the sum must not be
less than a million dollars annually,
payable each June 30.
In arriving at the valuation of
lands seized from American owners
by Mexico for subdivision to Mexi-
ran naacantc fho oo,,o,,,;ee;.xo..