The Waterbury Democrat., 1938-08-26

"by arrangements for adequate prompt and effective payment"
 Although the note bristled with charges of "confiscation" and ot Mexican violation not alone of in- ternational treaties and interna- tional law, but of fundamental laws of all American nations regarding the sanctity of private property, he suggested two previously offered methods of arbitration:
 Arbitration Suggestions
 l. That suggested in his note of July 21, whereby two commissioners one selected by each country, ar- bitrate the claims.
 2. That provided for by the so- called Gondra treaty of 1923, where by the treaty's permanent commis- sion at Washington would select one arbitrator to decide the disputed questions.
 But the general tone of the note was negative. Hull said that the United States had received mot only with surprise, but with pro- found regret" the contentious made in Mexico's note of August that there Is no rule under international law which makes obligatory the payment of immediate compensa- tion."
 He replied that such expropria- tion was bald confiscation. and in violation not only of international law, but of the guarantees con- tained in the constitution of every American republic.
 Seizure Without f.55,..Snt
 Reduced to its essential terms, he said, "the contention asserted by the Mexican government is plainly this: That any government may, on the ground that its muni- cipal legislation 50 permits, or on the plea that its financial sitlua- toin makes prompt and adequate compensation onerous or impos- sible, seize properties, utilize them for whatever purpose it sees fit, and refrain from providing effective payment therefore.
 This is the first occasion in the history of the western hemisphere that such theory has been seri- ously advanced. In the opinion oi my government, the doctrine SC proposed runs counter to the basic precepts of international law and of the law of every American re- public, as well as to every principle of right and justice upon which the institutions of the American re- publics are founded"
 Cannot Nuiiify Old Rule
 Hull reiterated assertions of pre- vious notes that "the government of the United States cannot ad- init that a foreign government may take the property of American na- tional in disregard of the univers- ally recognized rule of compensa- ton under international law or ad- init that the rule of compensation can be nullified by any country through its own local legislation"
 AS in the note of July 2l, he did not mention Mexicos seizure last spring of oil properties valued at approximately $250,0o0,00. The note concerned solely the expropria- tion of Agrarian lands, the victims of which, 1t said were chiefly the owners of farms of moderate size with claimed value of $101 ,132,-
 Diplomats here generally agreed that in proposing that the contro- versy be submitted to arbitration Hull was laying the foundation for similar action in tn cease of the seized oil properties. Mexico, in its note of Aug. 3, flatly rejected the proposed arbitration declaring there was nothing to arbitrate.
 Mexican Surprised
 Mexico City, Aug. 26.---(UP) = Mexicans read with some surprise today the strong note from the United States on the farm property appropriation program.
 Early summaries proved mislead- irg. The impression had been re- ceived here that 1t was friendly and even weak in tone and that 1t rep resented a decided diplomatic vic- .----.---.- firm about l40 miles from Hankow
 Palestine-Another terrorist bomt explosion killed l8 and wounded about 30 Arabs in market place al Jaffa.
 Mexico-The United States. again urging Mexico to accept arbitration or commission settlement of the dis oute over payment for eOnfiscatec foreign owned oil lands, warned Cht