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Show fUS. Pending Differences Between Be-tween the Two Gov-ernments Gov-ernments Will Be Set- tied by Direct Negotiations Negotia-tions ; Secretary Lansing Lan-sing Completes Draft of Note to De Facto Chief. FINANCIAL AID MAY BE EXTENDED Mexican Government Is Expected to Guarantee Security of American and Foreign Interests; Guard to Remain on Border Until Danger Is Over. WASHINGTON, July 6 The de facto ' government of Mexico was informally in-formally notified tonight through ELiseo : Arredondo, einbassador-designate, that the United States welcomed General Carranza'a proposal to adjust all pend- ing differences between the two governments govern-ments by direct diplomatic 7iegotiation. Mr. Arredondo was informed of the American government's attitude in a conversation today with Secretary Lansing, after the latter had conferred with President Wilson. Later a formal note will confirm the embassador's report. re-port. Mr. Lansing virtually had completed com-pleted a draft of the communication tonight, to-night, but it may be read to the cabinet tomorrow before it is delivered. i .Immediately after the cabinet meet-i"l, meet-i"l, Secretary Lansing plans to leave for a month's vacation. Counsellor Polk will administer the affairs of the state department in his absence and meet Mr. Arredondo in the formal discussions at which a solution of the Mexican problems prob-lems will be sought. May Aid Carranza. Tt was evident at the state department depart-ment today that officials believe an opportunity op-portunity now has been presented out of which may come a means of giving tho do facto government matorial aid in restoring order throughout Mexico. It is known that the pacific nature of the Ioxican note which brought the crisis between the governments to an end is construed here as indicating that General Gen-eral Carranza, besides being impressed by American military preparations, has been deeply influenced by tho pressure and argument brought to bear on him by friends in the United States, by Euro- pean diplomats in Mexico City, and particularly by representatives of many of tho Latin-American powers. The latter have exerted themselves to the utmost to avert war and to foster in General t'arrnnza 's mind the idea of pan-American unity. Guarantees Necessary. While the immediate- purpose of the negotiations in which Secretary Lansing's Lan-sing's note is to be the first step will be the evolution of some plan tor tran-quilizing tran-quilizing the border regions, the discussions discus-sions may take on a wider scope. There is little doubt that Mr. Arredondo received re-ceived the impression from Secretary Lansing today that if adequate guarantees guaran-tees as to the security of American ami other foreign interests in Mexico could be secured the Washington government believes it possible that tlie financial aid so greatly needed by the de facto government could be found. Details of the form and extent of the guarantees quired, and the amount and nature of tjp financial nid that American bankers might be willing to furnish, can only be worked out by .protracted discussion. Pinch Now Felt. Some time nso, it Is understood, a sup-pest sup-pest Ion tn:U the Washington government would encourage American hankers to po to the rescue of the le fjicto srovernment w:if made through indirect channels. At that time General Carranza. had not felt t he pinch of poverty which now threat -eii5 his government with collapse. He rejected re-jected the suggestion, as he hellcved he could restore financial stability without foreign a lil. tie s known to hold radical radi-cal views on the question of foreign oon-rpsfdons oon-rpsfdons and is understood to have been net uated by a desire to leave himself f rt,e of any obligations in thig regard. r cuts clearly have proved t lie failure of t he firt chief's hopes to re-establish orderly government unaided, officials here believe, and with the war abroad shutting (Continued cm Page Four.) GIIIZ1 PROPOSAL ACCEPTED BY II, S, (Continued from Pago One-.) off every other source of assistance, he is thought now to have reached the point where he wilt make proper guarantees guaran-tees in order to secure American capital. Counselor Poik held a conference late today with Henry T. Fletcher, designated to be embassador to Mexico, and Paul M. Warburs of the federal reserve board. The object of the meeting was not disclosed, dis-closed, but great significance was attached at-tached to It as indicating that the state department had found it convenient just at this time to inquire as to the probable attitude of American bankers, and as to t ho disposition of the federal reserve board itself toward lending such aid as might be in Its power to the Mexican go I'l'iiment. Xo statement could be obtained as to the nature of the financial project that may be in contemplation. Mr. Warburg is a recosnized authority on all matters of American ri nance and his advice probably prob-ably would bo sought even if the federal I reserve board was in no way involved, i Secretary Lansing would not discuss (the terms of the note he will forward to the dc facto government approving the I suggestion for "direct diplomatic negotiations negotia-tions to find a solution of the difficulties 'in which the governments have become j involved. It is believed, however, that ! it will lay great stress upon the friendly purposes of the I'nited States and intimate inti-mate that any plan of action that may be suggested which will insure the security secur-ity of the American border will find ready acceptance in Washington. Case Stated by Carranza. General Cnrranza's note succinctly stated tile issue which almost brought war. It pointed out that the "reasonable" "reason-able" anxiety of the United States for the safety of its frontier, on the one hand, anl the feeling of the de facto government govern-ment on the other, that the presence of A m erica n troops in Mexico increases the causes of friction, were the questions to be settled. U appeared probable tonight that Sec-rotary Sec-rotary . Lansing's reply would make an equally clear definition of the issue as it is seen by the Washington government. govern-ment. These formal statements of the cn se will serve later as a guide to the negotiators who will seek a solution by Informal discussion of all the elements invclve.1. Mr. Arrrviondo said tonight that while ; he had general instructions from his gov-j gov-j errunent to discuss with the state depart-j depart-j merit the points on which there is iis- a -reement. he would await new orders jfrom Mexico City before undertaking the proposed nfvui l?.tions. He added that he jdd not expect to take up the question 'of arr;ins!:ic: credit for his Government, ; hut would 'leu vp that to Dr. Alfredo ' Caturecli. General Carranza's financial I agent stationed in New York, i It is be:!?ve I here that the question of ' constructive measures to stabilize the Mexican government will come un before t::e ton v ?:-s:t t tuns have proressd very far. T:,.c Wa?i:lncton administration Is ; understood to be as firmly convinced as ever tb.it the onlv proper and efficient cure for the distressing condition of its southern, neighbor must be found within t:..it country, not throuch intervention. At the same time a cure for the lawless conditions in the border states must be t'ond before h-? United States can feel ; 11 !:-ed in abating in any decree the rrcparti:ions it is making to protect its fmn'aer bv force of arms, i Th-i-re is no question that the Mexican government will con rend forcefully for ; w:th'J"uw,il (if American troops from Mtxico. Since the purr-use to compel their withdrawal has been abandoned, however, officials do not look for another deadlock on that issue. President Wilson is said to be ready-- to order the troops out promptly when he has any assurance that it will not mean merely a renewal of the conditions that caused them to be sent in. But no plan of action now agreed upon can be based upon an agreement agree-ment to withdraw them. Mobilization of the national guard continued con-tinued to go forward on schedule today, according to war depart ent reports, and the state soldiers are certain to get valuable valu-able experience upon the border before they are released from the federal service, ser-vice, .lust how long It will be necessary to maintain all or part of the force to aid the regulars In patrol duty cannot now be predicted with accuracy. Events in Mexico will determine that. It is certain, however, that the entire mobile regular army will be kept in border bor-der garrison while there Is the remotest danger of new bandit uprisings. Publication today of Secretary Bakes's order that members of the guard with dependent families be discharged from the service was the first sign at the war department that tension on the border had relaxed. It is regarded as making unnecessary any explanation on the subject sub-ject of relief for soldiers' families and also carries out the expressed desire of President Wilson that the border patrol duty be so arranged so as to work as little inconvenience for the citizen soldiers sol-diers as possible. Must Stay Out for a Time. Further reports of the return of American Ameri-can refugees from Mexico reached all government departments. State department depart-ment officials who anticipated that many wouid desire to -go back at once in view of the favorable turn In the international situation will make every effort to dissuade dis-suade them. In this connection It was stated officially offici-ally that no additional measures had been in contemplation for the protection of Americans who refused to leave during dur-ing the days when war seemed almost at hand. State department ofticiaJs have exhausted every effort to get all nationals nation-als out of Mexico. They hold that those who remained there did so at their own risk, and that the government could do nothing more in their behalf. |
