812.52/2421

The Ambassador in Mexico (Daniels) to the Secretary of State

No. 5693

Sir: I have the honor to report that Mr. Boal had an interview at the Foreign Office on November 15, 1937, with Licenciado Beteta.

[Page 636]

The originals of the attached memoranda on various points of interest to the American landowners in the Yaqui Valley, Sonora, were left with Mr. Beteta.

A copy of this despatch, with enclosures, has been mailed to Vice Consul Yepis in order that he may, in his discretion, verbally advise the American landowners of this action on the part of the Embassy.

Mr. Boal’s conversation with Mr. Beteta is being reported in a separate despatch.

Respectfully yours,

Josephus Daniels
[Enclosure 1—Memorandum]

The American Embassy to the Mexican Ministry for Foreign Affairs

Priority for American Landowners of Yaqui Valley in Selecting “Compensation” Lands

Since the American landowners in the Yaqui Valley made such an important contribution to the social progress of that area through beginning and fomenting its development, since they will be handicapped in selling their “compensation” lands advantageously in consequence of the comparatively limited time in which they must dispose of the said lands and because of the limitation placed on the marketing of these lands which cannot be sold to foreigners on account of being within 50 kilometers of the seacoast, it is not believed that the giving of priority to the Americans in the choice of “compensation” lands would be otherwise than fair.

As an alternative or concomitant arrangement, it is suggested that it may be practicable for the Mexican Government to offer to purchase the “compensation” lands from the American landowners, or to arrange for them if they so desire, to mortgage these properties for a substantial part of their value.

[Enclosure 2—Memorandum]

The American Embassy to the Mexican Ministry for Foreign Affairs

Exemption From “4% Capital Export Tax” of American Landowners in the Yaqui Valley

Since the agrarian affectation of their lands, a circumstance over which they have no control, may cause a number of American citizens in the Yaqui Valley to leave Mexico, even against their will, [Page 637] and will cause others to reduce their operations and consequently their capital requirements, it is assumed that exemption will be granted from the “4% Capital Export Tax” on monies removed from Mexico by such American citizens, whether the sums remitted abroad come from the payments which will be made by the Mexican Government, or from liquidation of their remaining land and other assets through transactions with non-official purchasers.

[Enclosure 3—Memorandum]

The American Embassy to the Mexican Ministry for Foreign Affairs

Reported Failure to Respect the Pequeña Propiedad of an American-Owned Company in the Yaqui Valley

It is understood that the agrarian authorities have failed to respect a pequeña propiedad of 100 hectares of irrigated land on behalf of the American-owned Compañia Agricola Occidental, L. C, Yaqui Valley, Sonora.

This circumstance would appear not to be consonant with paragraphs II and IV of the Presidential Acuerdo of October 27, 1937.36

It seems particularly important that immediate steps be taken for the delivery of the pequeña propiedad designated by the Company.

[Enclosure 4—Memorandum]

The American Embassy to the Mexican Ministry for Foreign Affairs

Americans in Yaqui Valley Experiencing Difficulty in Obtaining Data Regarding Affected and Inaffectable Lands

A report has been received to the effect that the agrarian engineers in the Yaqui Valley decline to furnish or even to show to American landowners, copies of the “actas” relating to the segregation of their lands into (1) pequeñas propiedades and (2) lands to be affected, but on which the American owners planted wheat and rice up to and including October 30, 1937, which they are entitled to harvest for their own account.

Under these circumstances, it is impossible for the owners to know what lands or crops they have left or to submit a list of the implements they may desire to sell to the Ejidal Bank.

[Page 638]
[Enclosure 5—Memorandum]

The American Embassy to the Mexican Ministry for Foreign Affairs

Exemption From “4% Capital Export Tax” of American Landowners in the Yaqui Valley

Since the agrarian affectation of their lands, a circumstance over which they have no control, will cause a number of American citizens in the Yaqui Valley to leave Mexico, even against their will, and will cause others to reduce their operations and consequently their capital requirements, it is assumed that exemption will be granted from the “4% Capital Export Tax” on monies removed from Mexico by such American citizens, whether the sums remitted abroad come from the payments which will be made by the Mexican Government in accordance with its promises, or from liquidation of their remaining land and other assets through transactions with non-official purchasers.

  1. Ante, p. 622.