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Show WAR CLOUDS NOW I ARE PASSING OVER I Washington Tells Carranza It Welcomes His H Proposal to Adjust Pending Differ- , ' JH enccs Diplomatically. ' H ORDER AND FINANCIAL AID ON THE HORIZON ' WASHINGTON, D. C, July (5. Tlio tie facto Kovornmont of H Mexico was informally notified tonight tliroiiKh Eliaco Arreilondo, . H ambaH.iiulor doslKiiate, that the United States welcomed General H CYrranza'ri proKsal to adjust all puntlliiK dlfforoncca between the 1 iH two KovurnmentH hy direct diploinntlc neKotlatioiiH. f ' Arreilondo was informed of the American Koverntnent'it nt- H titude in a conversation today with Secretary Iansintr after the 'H latter hatl conferred with President Wilson. Later a format note H will confirm the ambassador's report. Lansing virtually had com H pleted a draft of the communication tonight, but it may be read to . H the cabinet tomorrow before it in delivered. H Imtnedintely after the cabinet meeting Secretary Iansing H plans to leave for a month's vacation. Counsellor Polk will ad- H minister the affairs of the slate department in his absence and H meet Arreilondo in the formal discussions at which a solution of 'H the Mexican problems will be sought. j ' CAHUANZA NOW AMKNAHLK. M It was evident at the statu department today that officials be- ' ' M lieve an opportunity now has been presented out of which may M come a means of giving the dc facto government material aid in ' .H restoring order throughout Mexico. It is known that the pacific M nature of the Mexican note which brought the crisis between the i ' jJ governments to an end is construed here as indicating that Gen- I H end Carrania, besides being impressed by American military it !H preparations, has been deeply influenced by the pressure and ar- j iH gument brought to bear on him by friends in the United States, I, , ;-' by European diplomats in Mexico City, and particularly by reprc- I ' ";H sunUitivcH of many of the Ijttin American powers. The latter i jH have exerted themselves to the utmost to avert war and to foster ' ,', H in General Carranzn's mind the idea of pan-American duty !'A F While the immediate purpose of the negotiations in which J. .' M Secretary r-nnslng's note is to be the first step will be the evolu- 1 1- M tion,of some plan for traiumilizlng the border regions, the discus- j iH slons may take on a wider scope. There is little doubt that Arre- . (londo rece(ved the impression from Secretary Lansing today that Mt'l if adequate guarantees as to the security of American and other ' foreign interests in Mexico could be secured, the Washington gov- trnment believes it possible that the financial aid so greatly need- jr'l ed by the do facto government could be found. Details of the fr form and extent of the guarantees required, and of the amount i and nature of the financial aid that American bankers might be lll willing to furnish can only be worked out by protracted discussion. i . I H Some time ago, it is understood, a suggestion that the Wash- 11 ington government would encourage American bankers to go to " !H the rescue of the do facto government wan made through indirect . IH channels. At that time General Carranza had not felt the pinch J fH of poverty which now threatens his government with collapse. Uo !(H rejected the suggestion, as ho believed he could restore financial j i! stability without foreign aid. He Is known to hold radical views ' TH on the question of foreign concessions and is understood to have ''I'H been actuated by a desire to leave himself freo of any obligation ll in this regard. i 1 CAN'T 1)0 IT ALONG. ' 'H Events clearly have proved the failure of the first chief's , 'JH hopes to re-establish orderly government unaided, officials hero ' 'H believe, and with the war abroad shutting off every other source of assistance, he is thought now to have reached the point where . ' he will make proper guarantees in order to secure American capi- ifjl tal. Counsellor Polk held a conference late today with Henry T. . i H Fletcher, designated lo be ambasMulor to Mexico, and Paul M. i ,iij Warburg of the federal reserve board. The object of the meeting j 'li was not disclosed, but great significance was attached to it as in- 'ifll (Heating that the Htate department had found it convenient just if at this time to inquire as to the probable attitude of American m! Hfll bankers, and as to the disposition of thu federal reserve board it- iT tll self toward lending such nid as might be in its power to the Mexi- . .ll can government. fll No statement could be obtained as to the nature of the proj- r tfjll cct that may be in contemplation. Warburg is a recognized uu- (IH thority on all matters of American finance and his advice probably h tffl will be sought even if the federal reserve board is in no way in- ;ji'il vol veil. Secretary Lansing would not discuss the terms of tho ,ji gnH note ho will forward to the de facto government approving the J ttfH suggestion for direct diplomatic negotiations to find a solution of W flH the difficulties in which the governments have become involved. wi IjHH It is believed, however, that it will lay great stress upon tlio OL iWM friendly purposes of the United States and intimate that any plan 1 H of action that may be suggested, which will insuro the security of ffl IRH the American border will find ready acceptance in Washington. Km lH Mobilization of tho national guard continued to go forward on ili&fliHi bchcdule today, according to war department reports, and the i HyH htate soldiers are certain to get valuable experience upon the f H i border before they are released from the federal service. Just fvliSI how long it will be necessary to maintain all ur part of thu force f fiHtfJil to aid the regulars in patrol duty cannot now bo predicted with NEaHH accuracy. fSfll |