812.00Sonora/339: Telegram
The Ambassador in Mexico (Morrow) to the Secretary of State
[Received 7:44 p.m.]
129. Department’s 159, March 16, 11 a.m. The Embassy’s telegram number 110, March 12, 10 a.m. [p.m.], sets forth the first informal authorization as given by the Government to the Southern Pacific Railroad. Later a meeting was held between the Southern Pacific representative here and Government agents and the three conditions set out in your 159, March 16, 11 a.m., were formulated and agreed to. Still later another meeting was held at which the Southern Pacific representative explained to the Government official the difficulty in practice of complying with these conditions. All of what you recite as condition 2 was then modified by the Government so as to permit funds to be withdrawn with the approval [Page 368] of the Mexican Consul at Nogales for payment of labor in Mexico and obligations in the United States. Sloan says that the arrangement as it now stands is perfectly satisfactory to the railroad and he feels it should satisfy the shippers. We think you can therefore assure representatives of the shippers who have been conferring with you that there is every desire on the part of the Government officials here to cooperate with the railroad and shippers in avoiding loss to vegetable growers.