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Show MEXICO BACKED BYGERMANY. German Bank Accepts Large Quantities of Mexican de Facto Money. UNLIMITED RESOURCES New Constitution Planned to Aid Cause at Expense of United States. WASHINGTON. March 14. Confidential Confi-dential diplomatic reports from the representatives of a neutral government govern-ment in Mexico passing through here on their way to Europe say the Ger-j man bank in Mexico City and the German Ger-man legation there are guiding virtually virtu-ally the entire financial and diplomatic affairs of Mexico. According to these reports, the ar-tlon ar-tlon of Mexico in sending recently to the American republics a note on the subjec t of peace in Europe was directed direct-ed b officials of the German legation, while the German bank is said to have come into control of the Mexican fi nancial situation. It Is declared that the German hank baa accepted quantities of the paper issued by the Mexican government and that the institution appears to have at Its disposal unlimited resources. From the tenor of the reports, it. ap-! pears that a large quantity of lierraan money has reached the Mexican gov-1 ernment. The German location is said in the reports virtually to be direct ing every move of the Mexican gov-1 ernment, both internally and externally. exter-nally. New Constitution Favor Germany. Considerable attention is given in the reports to the new Mexican con situation which goes into effect May 1, it being declared that several of ita provisions apparently were devised I as means of assisting the cause of Germany in Mexico at the expense of i the interests of the Entente allies and the I'nited States. Article 27 of the new constitution which provided for the confiscation of concessions or property of foreigners is regarded as especially dangerous to' the entente allies and neutrals in gen : eral. Development s In the near future,' the reports indicated, will be directed j at ousting from control of the oil fields American, British, Dutch and other Interests Scheme Against U S. Althouph it is not specifically stated in the reports that such is the fact, the diplomat forwarding them has reason for believing that in return for the favors done for the Mexican govern ment, certain promises and conditions have been imposed which will serve lo bring about a close alliance which obviously could be used against the I'nited States in event of war between the United States and Germany. The reports omit all mention of the celebrated German letter to the German Ger-man minister in Mexico. The arrival in Mexico of American Ambassador Fletcher is mentioned, the report which was written for the confidential information of the diplomat's government, gov-ernment, adding that the writer does not believe in view of the situation, that the presence of the American rep resentaiive will bring about any change in the conditions. President Wilson is amazed nt the proposal of nation-wide railway strike at thi6 juncture of international affairs. af-fairs. Tt was stated authoritatively today that be expects railroads and the men at their conference in New York tomorrow to consider the state of the country's foreign relations and make every possible effort to agree. It is possible that he may appeal to both sides on that ground. Today the president was being kepi in touch with the .-ituation through Secretars YAH-son YAH-son of the department of labor. oo |