File No. 412.00/61

The French Ambassador ( Jusserand) to the Secretary of State

[Translation]

Mr. Secretary of State: My Government advises me that in its opinion the dual jurisdiction over claims provided by Carranza’s decree of November 24 offers but inadequate guaranties to foreign claimants.

For instance, Mexican corporations whose capital is foreign are barred from appeal to the arbitral commission and the membership of the commission itself is entirely left to the arbitrary will of the Mexican Government.

The Government of the Republic particularly wishes to point to Articles 5, 8, 12, 14 and 17 of the said decree as calling for the most formal reservations in any event.

I should be thankful to your excellency if you would kindly enable me to report to my Government the American Government’s views in this respect and, if you deem it possible, acquaint me with the purport of the instructions you shall have sent on the subject to the representative of the United States in Mexico.

Be pleased [etc.]

Jusserand

The Acting Secretary of State to the French Ambassador ( Jusserand)

No. 2090

Excellency: I have the honor to acknowledge the receipt of your excellency’s note of February 8, 1918, in regard to President Venustiano Carranza’s decree of November 24, 1917, respecting the settlement of claims against the Mexican Government.

You state that it is the opinion of your Government that the decree does not offer adequate guarantees to foreign claimants, and you invite my special attention to Articles 5, 8, 12, 14 and 17 of the said decree. You say that you would be pleased to receive an expression of this Government’s views regarding the matter, for communication to your Government.

In reply I have the honor to say to your excellency that further information has been requested from the Mexican Government with [Page 801] relation to the meaning of Articles 5, 6, 7, 12 and 14 of the decree in question, and that no definite position will be taken respecting the decree until the Department shall be more fully advised in the premises.

However, it may be added that the Department is desirous of accepting the plans of the Government of Mexico for the disposition of the claims of foreigners if the Government of the United States finds that this can be done with justice to the interests of American citizens concerned.

Accept [etc.]

Frank L. Polk