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HARVARD LAW LIBRARY

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Printed for the use of the Foreign Office. Man 1885,

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CONFIDENTIAL. /<^_ ^V /fA (A. f.„^

FURTHER CORRESPONDENCE

RESPECTING THE

r RENEWAL

DIPLOMATIC BELATIONS WITH MEXICO.

1884.

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TABLE OF CONTENTS.

No.
1

10
11
12

15
16

17
18
19
20

22
23

25
26

Name.
Sir S. St. John

Law Officers

Sir S. St. John

Mr. West . .

To Sir S. St. John . ,

Sir 8. St John

8
Commercial

13
Commercial

Messrs. Valpy, Chap-
lin, and Peckham

To Messrs. Valpy,
Chaplin, and Peck-
ham

Sir S. St. John

Confidential

Commercial

Senor Mariscal

To Mr. Bouverie

To Senor Mariscal
Sir S. St. John

To Sir S. St John

Sir S. St. John
To Sir S. St. John

No.

Confidential

11
18

21
Very Conf.

22
Very Conf.
Unofficial

Confidential

16
26

Confidential

18
Confidential

To Senor Mariscal

Date.
Dec. 4, 1883

Jan. 22, 1884

28,

Feb. 23,

Jan. 30,

36,

30,
Feb. 29,
Mar. 6,

Feb. 16,

27,

27,
Apr. 3,

28.

28,

May 17,

20,

21,
3,

31,

June 2,
May 16,

[309]

Subject.

Receipt of No. 166* of 1883, relative to Project
of Agreement. Old Treaty of 1826 should
not be abandoned till new one is made

Opinion as to Treaties, Conventions, and
Agreements regarding commerce, Slave
Trade, and British claims. Approves pro-
posed draft Agreement under the circum-
stances

Receipt of No. 173 of 1883. Has informed
M. Fernandez that a counter-proposal will
be made • • •• ' . . • •

Reporting on proposed conversion of Mexican
Debt

Proposed French Commercial Treaty. Diffi-
culty as regards differential duties

Senate refuses to ratify Mexican Reciprocity
Treaty. Ratification postponed to July • .

Conversation with Senor Mariscal on British
counter-project to Mexican draft Agree-
ment. Reference to Nob. 166* and 177 of
1883 • • • • - , • •

Receipt of No. 177 of 1883. Mexican Go-
vernment may object to clause 3 of counter-
proposal

Receipt of No. 178 of 1883. Conversation
with Senor Fernandez on moral influence of
England with the United States

Limitations on diplomatic intervention. Views
of United States' Minister

Manning and Mackintosh claim. Refers to
No. 143 of 1883. Renew inquiries

Receipt of above. Diplomatic relations not yet
renewed • • • • • • . .

Financial difficulties of Mexico. Decree im-
posing additional 5 per cent in customs
duties. Attempt to raise a forced loan

Receipt of telegram announcing delivery of
counter-proposal to Senor Mariscal

See No. 13. Forced loan abandoned

Receipt of No. 7. Interview with Senor
Fernandez. His objection to counter-pro-
posal

Allusion in President's Message to Mexican
foreign debt. Remarks ..

Unfavourable report on project for settlement
of English debt

See No. 1 6. Project drawn up by him. Senor
Fernandez' counter-project . • • •

Copies of project and letter from Sir S. St.
John, communicated by Senor Fernandez,
Requests interview . . .. ••

Sends No. 17 for confidential information of
Council of Foreign Bondholders ••

Receipt of No. 20

See No. 1 9. As to manner of settling balances
of Convention Debts • . . . • •

Receipt of No. 19. Approves his project,
with certain omission. Full instructions
will follow . • • •

Copy of No. 20 . .

Reciprocity Treaty with United States ratified
by Mexican Senate . . • • • .

See No. 24. Instructions. Draft of new
Treaty being prepared. Entire approval . .

See above. British claims. Important to
have a representative on their behalf

See No. 27. Sends draft of new Treaty, for
communication to Mexican Government.
Instructions ..

See No. 20. Substance of No. 27. As to
most-favoured-nation clause in Article 3

Page

4
5
5

6
7
7

9
9

10
II

15
16

16
16

18
19

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TABLE OF CONTENTS.

No.

31
32

33
34
35

36
37
38

41
42

44
45

46
47

54
55

56
57

60
61

€6

68
69

71
72

73
74

Name.

To Senor Mariscal
Memorandum commu-
nicated by Senor
Mariscal
Sefior Mariscal
To Senor Mariscal • •
To Sir S. St. John f .

Senor Mariscal
Sir S. St. John

To Sir S. St. John . .

» j> • •

SirS. St. John
To Sir S. St. John ..

99 99 • •

To Senor Mariscal . .
SirS. St. John

»• 9 9

Memorandum by Lord

£. Fitzmaurice
To Sir S. St. John . .

i> » • •

Sir S. St. John

99 >» * «

To Sir S. St. John ..

W if • •

SirS. St. John

To Senor Mariscal
To Sir S. St. John

Senor Mariscal
To Sir S. St. John

Mr. Percy Doyle
Sir S. St John

Mr. Percy Doyle

To Sir S. St. John
Mr. Bouverie

To Sir S. St. John
Sir S. St John

No.

Private

Private
Private
23

Confidential
Telegraphic

Private
Telegraphic

Telegraphic

Secret
Telegraphic

Telegraphic
29

Telegraphic
27

Telegraphic

31
Secret and
Confidential
Telegraphic

Confidential
Telegraphic

33
7

Commercial
Telegraphic

Private
4
Commercial

Private

Private
34
Most Conf.
38

39
Confidential

40
Confidential

Very Conf.

31
Confidential
Private

29
Confidential

Telegraphic

Secret and
Confidential
Telegraphic

Date.

June 21, 1884
21.

23,
24,

26,

27.

26,

July f,

15,

16,

17,

19,
19,
21,

30,

14,

Aug. 1,

2,
4,

July 17,

Aug. 5,

5,
July 19,

Aug. 6,

11,

12,

9,
H,

16,

19,

16,

July 30,

Aug. 19,

30,
31,

Sept. 3,
4,

Subject.

Copy of proposed Treaty (see No. 29)
Draft addition to Article 3 proposed by Senor
Mariscal • • • • . •

Thanks for No. 31 ..

See No. 32. Proposed clause is inadmissible. •

Copies of Nos. 32 and 34. .

See No. 27. Draft Treaty on its way

Receipt of No. 34

Mexican Government consent to most-favoured-
nation clause for six years. Shall he sign ? •

Requests reply to above . .

See above. Any prospect of conclusion of pro-
posed Commercial Treaty on basis sent to
him ? •• • . •• # .

Extends above. Receipt of Nos. 88 and 39.
Refers to Nos. 27 and 29

Reply to No. 40. Result secured by Agree-
ment • • •• •• • .

Receipt of above. Instructions

Extends above

Sir S. St. John instructed to sign Preliminary
Agreement . . .. . . . .

Senor Mariscal protests against Agreement . .

Receipt of No. 27. Extends No. 38. Remarks

Conversation with Senor Mariscal

Receipt of No. 46. To await further instruc-
tions . . . . • . • •
Extends above
M. Fernandez accepts Agreement unaltered . .

Receipt of No. 40. Situation favourable for

proposed Commercial Treaty
Receipt of No. 51. To sign at once, if

possible
Extends above
Will call attention to Mexican Customs Tariff.

Agreement signed unaltered . .

Informs him of above. Civilities ••
Receipt of No. 55. Approval

Congratulations. Substance of final interview
with Senor Mariscal . . . • • •

Thanks for No. 57. Remarks, &c. Civilities.
See No. 50. Copy of No. 48

Page
19

20
20
20

21
21

22
22
22

22
23
23
23

24
24
24

Receipt of No. 56. Ap.

Extends telegram.

proval • .

Copy of No. 60 .

Copy of No. 57 . •

British subjects should be protected by Treaty
stipulations against forced loans • • . •

Extends No. 51. President rejects M. Maris-
cal's objections . . , . . .

Sends Preliminary Agreement signed to-day ..

Explains a sentence in Article I

Difficulties in the way of signing Agreement . •

Suggests clause in Treaty to prevent Conven-
tions being influenced by changes of Govern-
ment • • . • •• • .

Copy of No. 65 . . . . «•

Could Sir S. St. John ascertain whether
General Diaz proposed settlement of Mexican
debt ? •• •• •• . •

Instruction to make above inquiry confi-
dentially . . . • ••

Cannot reply to above by telegraph. •

25
25
26

26
27

27
27

28
28

34
34

35
35

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TABLE OF CONTENTS.

in . ,

)hap-
im

alpy.
>eck-

No.

Telegraphic
Telegraphic

• •
Telegraphic
Telegraphic

Telegraphic

34
Secret and
Confidential

Date.

Sept. 8, 1884

11,

13,
13,

13,
15,

20,

12,
Oct. 1,

36 Sept. 15,
Oct. 8,
Sept. 24,

50
51

vian,

(Li-

a ..

nan,

rian,

a ..

wan,

Confidential

42
60

Oct. 15,
15,
15,

20,

25,
Nov. 10,

19,
Oct. 29,

31,
Nov. 25,

25,

28,
Dec. 3,

17,

Subject.

Has Agreement been received ? . .

Yes, and ratification prepared

See No. 72. Mexican Debt. Requests fur

instructions to Sir S. St. John
Receipt of No. 74. Instructions in sens*

above . . . .

Mexican Debt. May he contradict press re

that Bondholders' Committee has accej

settlement? ..
Receipt of No. 77. Sir S. St. John instrui

accordingly ..
Mexican Debt. See No. 78. Awaits repl;

No. 79 . . . .

Receipt of Nos. 79 and 81. To deny rej

officially . .

Ratification goes to him by post to-night
Receipt of No. 73. Mexican Debt. View

General Diss,.

Records Nos. 75 and 76. Remarks
Mexican Debt. Receipt of Memorandum

Agreement between Bondholders' Commit

and M. Noetzlin, Mexican Agent .
Records No. 79. Mexican Debt. Feeling

to intervention of Her Majesty's Governm
See No. 12. Manning and Macintosh cla

Any steps likely to be taken ?
Receipt of No. 82. Correspondence *

Senor Fernandez on arrangement for set

ment of Mexican Debt
Receipt of above. Approval
Receipt of No. 87. Approves language
See No. 88. Sends "Mexico No. 1 (1884

for their guidance

Refers to Foreign Office letter of the
November, 1883. Again calls attention
his claim

Receipt of No. 98. Sends (l Mexico No
(1884)," for his guidance

Forwards Mr. Rabling's claim

On Mr. Rabling's claim against Mexico

Forwards ratification of Agreement by Pr<
dent. Reviews negotiations. Appro
Mr. Carden. (Minutes by Sir J. Paun
fote and Mr. Bergne)
Final correspondence with Senor Fernandez
Rabling claim. Copies of Nos. 95, 96, i
100 for report. When -will British clai
be investigated ?
Receipt of No. 95. Rabling claim. Jnquii
will be made. Notice to British claima
will be published when arrangements ;
completed. Sends " Mexico No. 1 (1884
Fuller claim. Sends papers in support
Forwards further letter from Mr. Rabling

Receipt of No. 101. Similar reply to No. 1
Receipt of Nos. 97 and 98. Remarks
terms of ratification. Explains view wh
Her Majesty's Government attach to the
for communication to Mexican Governmei
Receipt of No. 102. No action can be ta)
until Sir S. St. John's Report is received

^■M

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Printed for the use of the Foreign Office. May 1885.'

CONFIDENTIAL.

Further Correspondence respecting the Renewal of Diplomatic

Relations with Mexico.

Nrtl.

Sir S. St. John to Earl Granville. — {Received January 1, 1884.)

(No. 36. Confidential.)

My Lord, Mexico 9 December 4, 1883.

I HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 23 of the 1st November, 1883, marked Very Confidential, inclosing a Memo*
randum of a conversation between Lord Edmond Fitzmaurice and Senor Mariscal,
together with a copy of a. Project of an Agreement for the renewal of diplomatic
relations between Great Britain and Mexico.

Should it be considered possible to accept M. Mariscal's proposition, that all the
old Treaties have been abolished by acts of war, I would venture to suggest that it
would be prudent to settle the terms of the new Treaty before giving up that of
1826. France, Germany, Italy, Spain, and Belgium have in turns endeavoured to
negotiate Treaties, but Germany alone succeeded by accepting the objectionable
Article (No, XVIII). I feel assured that the Mexican negotiator would insist upon
the acceptance of a similar Article in any Treaty with Great Britain, if we had
previously abandoned our old Treaty.

The Articles of the English Treaty of 1826 to which the Mexican Government
principally object are those which in all commerial matters assure to British
subjects the same rights and privileges as those accorded to Mexican citizens.
M. Fernandez told me that they feared the Americans would take advantage of any
acknowledgment of the validity of the old English Treaty to claim the same
benefits. I answered that it was not English policy to seek any exclusive privi-
leges, but what we desired was to be placed on the same footing as others, and that
I felt assured we should be satisfied with a Treaty based on the condition he had
always promised, that no nation whatever should be favoured at our expense.

I have &c.
(Signed) ' SPENSER ST. JOHN.

No. 2.

The Law Officers of the Crown and Dr. Deane to Earl Granville. — (Received January 23.)

My Lord, Royal Courts of Justice, January 22, 1884,

WE are honoured with your Lordship's commands signified in Sir Julian
Pauncefote's letter of the 11th instant, stating that he was to transmit to us the
papers relating to the question of the renewal of diplomatic relations between
Great Britain and the Republic of Mexico.

That those papers mainly consisted of the Treaties, Conventions, and Agree-
ments which had been concluded between this country and Mexico since the pro r
mulgation of the Mexican Constitution of 1824 and of Memoranda thereon.

[309] B

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That it would be seen that the subjects of those Treaties might be classified
under three heads — 1. Commerce; 2. Slave Trade; 3. British claims.

1. That in regard to the Treaty of Commerce, it was outside the scope of the
present letter, and need not now be alluded to.

2. With respect to the Slave Trade, that Traffic being now entirely suppressed
in Mexico, the Treaty of 1841 might be said to have lapsed.

3. That the Memorandum drawn up by Sir E. Hertslet on the 1st November,
1881, analyzes the nature of the various Conventions concluded between Great
Britain and Mexico for the settlement of the British claims.

That with regard to those claims, it should be borne in mind that it was in con-
sequence of the arbitrary and vexatious conduct of the authorities of the Republic
of Mexico towards British, French, and Spanish subjects that those Governments
concluded a Convention on the 31st October, 1861, of which a copy was inclosed, in
whteh tkqy* agreed to have recourse to. combined operations. ^gaiast Mexico, with a
view to demand from those authorities more efficacious protection for the persons
and properties of their subjects,, as welltasa.faUiJweatof the obligations contracted
towards those Governments by the Mexican Republic.

That in 1864 Maximilian "was duly elected Emperor of Mexico and duly recog-
nized by this country.

That statements with regard to the British claims had from time to time been
formally presented to the Mexican GoVfernmnet, and that that fact was recorded
in the Convention of the 26th June, 1866, concluded with the Government of the
Emperor Maximilian, by which it was also agreed that a Mixed Commission should
be appointed for their investigation and settlement.

That that Commission sat in Mexico from August 1866 until March 1867, when
its sittings were temporarily suspended.

But that in August of that year diplomatic relations between Great Britain and
Mexico were suspended owing to the determination taken by the Republican
Government of Mexico, which succeeded that of the Empire, no longer to recognize the
Agents of any Power which had acknowledged the Emperor Maximilian. In recog-
nizing, however, the Empire, Her Majesty's Government simply adhered to its
traditional policy of recognizing what was represented to it ac the time as being the
de facto Government of Mexico.

That the object of the Convention of 1866 was to refer to a Mixed Com-
mission all claims which had not been dealt with in previous Conventions, whHst
it declared to be valid all such as had already been recognized by the two
Governments.

That the nature of those claims was described in the Memoranda by Sir E.
Hertslet of the 5th November, 1881, and the 9th March last, to the former of
which was attached the text of the different Conventions which had been concluded
for the settlement of the British claims.

That the Government of Her Britannic Majesty and that of the Republic of
Mexico had long desired to see the present estrangement between the two countries
removed by a renewal of the friendly relations formerly existing between them.

That negotiations had been on foot for some time past with that object, but that
the Mexican Government had hitherto insisted upon attaching two conditions to the
renewal of relations : (1) that all existing Treaties between the two Governments
should be considered as abrogated ; and (2) that no claims which arose before the
resumption of friendly relations should be made the subject of diplomatic represen-
tation or demand.

That, at the same time, the Government of the Republic did not repudiate their
obligation in regard to those claims.

That negotiations had recently taken place between the two Governments, and
Special Envoys had been appointed with a view to ascertain on what basis diplo-
matic relations should be re-established, and how far the difficulties raised on either
side could best be removed.

That accordingly a draft of a "Preliminary Arrangement" between Great
Britain and Mexico had been prepared, of which a copy was transmitted
therewith.

That our attention was called to the 1st Article, which provided that Mexico
would proceed forthwith to the examination of international claims and debts, with-
out reference to the disputed Conventions, which, for the purpose of the Agreement,
should be considered as abandoned.

That our opinion was requested as to whether, having regard to the importance

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to Tmperiel interests of a renewal of relations between . the two countries, the aban-
donment of the Conventions in question by Her Majesty's Government would be
justified, and could be effected without incurring any liability from British subjects
claiming any interest thereunder.

That on that point we were referred to our Report of the 20th May, 1882, in
which we expressed our concurrence in an instruction to Her Majesty's Consul at
Smyrna, ^herein it was laid down in regard to the question of the Smyrna quays,
that "the settlement of such questions is an act of State, in which Her Majesty's
Government, however anxious to secure full justice for the British subjects
aggrieved, incur no obligation towards them individually, and must be guided not
only by the particular facts of the case, but also by considerations of public policy
and convenience."

In obedience to your Lordship's commands we have the honour to report —

That we do not think that Her Majesty's Government would incur any legal
liability to the persons whose claims are the subject of Conventions between the
Mexican and British Governments, in case the latter Government should agree to
the abrogation of such Conventions. It is to be observed that the claims of the
individuals interested against the Mexican Government are not created by the
Conventions.

All that the Conventions do is to create an obligation as between the two
Governments for the payment in the prescribed manner.

And it is, we think, competent for the Governments concerned to put an end to
this international agreement.

At the same time, it would be a strong exercise of authority, which would
probably be much criticized, and which the Government would be bound to justify.
And in certain circumstances such a measure might give rise to an overwhelming
equitable claim, that the debts which were the subject of the abrogated Conven-
tions should be discharged by the State.

In the present case the circumstances are, no doubt, peculiar. The claims are
of long standing, and one Convention has been substituted for another, as the
Mexican Government have proved unable or unwilling to fulfil their obligations.

And so long as diplomatic relations remain unrenewed the British creditors of
Mexico have no prospect of seeing the terms of the Conventions carried out. More-
over, the Mexican Government does not appear to be so anxious to renew diplomatic
relations that any conditions can well be imposed.

Under these circumstances, it may well be that the best thing that could be
done in the interest even of the creditors would be to enter into such an arrange-
ment as that proposed. We have pointed out the considerations which appear to us
to govern the determination of the question, but it is hardly within our province to
say whether the abandonment of the Conventions by Her Majesty's Government
" would be justified."

"We have, &c.
(Signed) HENRY JAMES.

FARRER HERSCHELL.
J. PARKER DEANE.

No. 3.

Sir S. St. John to Earl Granville. — (Received February 5.)
(No. 1.)
My Lord, Mexico, January 5, 1884.

I HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 26 of the 30th November, 1883, informing me that the question of formulating a
counter-proposal to that forwarded by M. Mariscal was under consideration.

I called yesterday on M. Jos6 Fernandez, and he informed me that he had
received M. Mariscal's explanations as to his reasons for having telegraphed to be
recalled. He appears to have reported that Sir John Walsham had made him a
visit with a letter of introduction from Lord E. Pitzmaurice, and a copy of
M. Mariscal's Project of Agreement, and that after having discussed various points
with him, Sir John had declared that Her Majesty's Government could not
renew relations with Mexico until the question of the bondholders' debt had beea
settled.

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M. Jos6 Fernandez, after consulting with the President, hag instructed
M. Mariscal to address a note to the Foreign Office to inquire whether the
declaration of Sir John Walsham was made on the part of Her Majesty's Govern-
ment, and at the same time to request a reply to his Project of Agreement, On
hearing the result they would then instruct him as to what course he should
pursue.

I told M. Fernandez that I was surprised to hear M. Mar i seal's account of his
interview with Sir John Walsham, but that I could assure him there was not, as he
appeared to suppose, any intention of breaking off negotiations ; in fact that the
latest despatch 1 had received from your Lordship mentioned that the question of a
counter-proposal being made to M. Mariscal was under discussion.

M. Fernandez expressed his satisfaction at the prospect of a counter-proposal
being made, as they were anxious to learn the views of Her Majesty's Government.
He hinted that M. Mariscal's amour-propre had been wounded since his arrival in
England ; he had thought that he, a Minister of Foreign Affairs, going abroad to
settle a question, would have found no difficulties, and that all questions would
have been arranged without any delay.

It is probable that either M. Mariscal or M. Fernandez is in error in mentioning*
the bondholders' debt as the one to which Sir John Walsham referred ; it was more
probable that he spoke about the Convention Debt.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 4.

Sir S. St. John to Earl Granville. — {Received February 5.)
(No. 2.)
My Lord, Mexico 9 January 5, 1884,

THE receipt of the Report of the Cojmmittee of Mexican Bondholders on the
state of the negotiations with the Special Envoy of the President of the Republic of
Mexico induces me to make some remarks on the subject. M. Rivas, who arrived
in Mexico yesterday, is a man totally unfitted to carry on an important negotiation,
and, if reports be correct, was more solicitous on the subject of his own pecuniary
interests than of those of his country.

Fresh proposals have lately been made to the Government by a responsible
English house to take the arrangement of the debt into their own hands, and settle
it without the interference of those who treat it as a speculation. These proposals
are still before the President, and he has promised to discuss the question
shortly.

The state of the Mexican Treasury was such that unless relief came imme-
diately there was danger of a complete collapse. The relief came in the form of a
temporary loan from the National Bank of nearly 6,000,000 dollars, to be repaid
after February next by fully 5 per cent, of the customs duties. As, however, but
an inconsiderable portion of this loan is to be given in cash, the necessities of the
Government will be soon as pressing as ever.

M. Noetzlin, an agent of the Franco- Egyptian Bank, arrived here on the 5th
instant, with the object, it is reported, to settle their financial affairs with the
Mexican Government on a more substantial basis, and to arrange for a more
permanent loan ; as this loan would require to be quoted on the European Stock
Exchanges, it is 'said that M. Noetzlin requires a settlement of the English debt
before concluding the new arrangement.

The pecuniary difficulties of the Mexican Government arise from the lavishness
of the authorities in granting subventions for every class of public works. These
subventions would not probably be given were not the friends of Government largely
interested in them. The revenue of Mexico is amply sufficient for all legitimate
expenditure, and if ever authorities, careful of the financial interests, are installed
in power, the Republic will not only be able to pay its way without borrowing, but
-will possess a surplus to meet the interest of the Public Debt.

I have, &c.
(Signed) SPENSER ST. JOHN.

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. No. 5.

Sir S. St. John to Earl Granville. — {Received February 5.)

(No. 8. Commercial.)

My Lord, Mexico, January 5, 1884.

I HAVE just been informed by M. Coutouly, the French Minister, that his
Government had directed him to lay before the Mexican Government the Project of
a Commercial Treaty which they were willing to sign. This Project contains the
Article of the German Treaty on the subject of diplomatic action, which M. Coutouly
has for the last year been so vehemently denouncing. He informs me that he
suggested this course to his Government, as he feared that if they further opposed
the acceptance of this Article, Germany might gain over them some commercial
advantage.

Article XV of the proposed Treaty declares that no differential duties shall be
levied by either country ; whereas Congress has lately voted a Law which provides
for slightly lower duties on goods imported in vessels under the Mexican flag.

On hearing of the passing of this Law the French Government telegraphed to
their Minister to protest against it, and to declare they would sign no Treaty which
did not contain Article XV. I do not think M. Coutouly has, as yet, carried out
these instructions, as he is aware that the Mexican Government are not in any way
anxious to sign Commercial Treaties except on their own terms.

This surrender on the part of the French Government, after so many protesta-
tions, will not tend to render our own negotiations less difficult.

I have not yet seen a copy of the proposed French Treaty.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 6.

Mr. West to Earl Granville. — {Received February 11.)

(No. 13. Commercial.)

My Lord, Washington, January 28, 188

I HAVE the honour to report to your Lordship that the Senate has refused to
ratify the Mexican Reciprocity Treaty by a vote of 39 to 20, a two-thirds vote in its
favour being required. A motion to reconsider it was then made. An Agreement
in the meanwhile has been signed with the Mexican Representative here, by which
the time for the ratification of the Treaty has been extended six months, or until
the 20th July next.

I have &lc
(Signed) ' L.S. SACKVILLE WEST.

No. 7.

Earl Granville to Sir S. St. John.
(No. 4 a.)
Sir, Foreign Office, February 23, 1884.

SENOR MAR1SCAL, the Special Envoy from Mexico to this country, called
at the Foreign Office to-day, by appointment, and was received by Lord Edmond
Fitzmaurice, M.P., on my behalf.

His Lordship stated to Senor Mariscal that Her Majesty's Government continued
to desire the re-establishment of diplomatic relations with Mexico on a permanent
and regular basis, and that the mention of the subject in the Queen's Speech at
the opening of Parliament was the best proof of that desire and of the importance
attached to it. This, Lord Edmond Fitzmaurice observed, he had no doubt had
been appreciated in Mexico, and Senor Mariscal replied that it had. Lord Edmond
then went on to say that he was now in a position to convey to Senor Mariscal my
views on the draft Agreement which he had sent to this Office in October last, and
a copy of which was communicated to you in my despatch No. 23, Very Confidential,
of the 1st November following.

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The proposals embodied in that draft had been examined with a cordial desire
to find in them the basis of a settlement. Nevertheless, while Her Majesty's Govern-
ment were prepared to make considerable concessions in the direction desired, and
while they understood the difficulties in which the Mexican Government was placed,
there were certain points in the draft which they could not accept. It contained,
Lord Edmond Fitzmaurice pointed out, two principal requests: —

1. That Her Majesty's Government should agree not to ask for the application
of the Treaties and Conventions which existed between the two countries in the
month of December 1861, to any case which might have arisen after that dale;
and

2. That Her Majesty's Government should agree not to raise or advance any
claim whatsoever for acts anterior to the date of the proposed Agreement.

Lord Edmond Fitzmaurice said that Her Majesty's Government were prepared
to make considerable concessions in regard to the Conventions, but that they could
not agree to the general waiver of their diplomatic rights, which was objectionable
in itself and would introduce a dangerous precedent into international law.

His Lordship then read to Sefior Mariscal, furnishing him at the same time
with two copies, the draft Agreement, copy of which was sent to you in my despatch
No. 27, Very Confidential, of the 31st December last, and of which I now annex
further copies, which he stated Her Majesty's) Government desired to propose as a
counter-project to the Mexican draft Agreement above referred to, adding that he
hoped that the Mexican Government would recognize the large concessions which
Her Majesty's Government propose to make and would meet it in a similar spirit
Lord E. Fitzmaurice also thought it right to point out to Sefior Mariscal that under
the Agreement now proposed the Mexican Government would undertake to make
provision for the payment of claims, and that it could only be on the performance
of this obligation that a new Treaty would be concluded. If, therefore, the Mexican
Government failed to perform this obligation, it would be competent to Her
Majesty's Government to denounce the Agreement and revert to the status quo ante,
but his Lordship added that he felt sure that this necessity would not arise, as
Her Majesty's Government had full reliance on the sense of justice of the Mexican
Government.

Sefior Mariscal then took his leave.

I am, &c.
(Signed) GRANVILLE.

No. 8.

Sir S. St. John to Earl Granville. — (Received February 28.)
(No. 6.)
My Lord, Mexico, January 30, 1884.

I HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 27, Very Confidential, containing a copy of a draft of a preliminary arrange-
ment between Great Britain and Mexico.

It appears to me that if this arrangement be accepted it will settle all difficulties
on a very satisfactory basis. It is probable, however, that the Mexican Government
may wish to limit the duration of the benefits to be derived from the third clause,
under the impression that we may never care to sign a Treaty which does not
completely meet our views. If a limitation of time be accepted it will be merely
adjourning difficult discussions.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 9.

Sir S. St. John to Earl Granville. — (Received February 28.)

(No. 7. Confidential.)

My Lord, Mexico, January 30, J 884.

I HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 28 of the 31st December, 1883, approving of the observations I made to
JML Fernandez in a conversation with that gentleman.

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I have frequent opportunities of meeting M. Fernandez, and we talk continually
on subjects which interest the two countries. He one day remarked that both the
President and his Ministers were anxious for a renewal of relations with England,
as they felt that English opinion was the only one that had any influence with the
Americans.

As M. Fernandez had previously been insisting that they could not sign any
Treaty without the Article which the German Government had accepted relative to
the limitation of diplomatic interference, I replied that I agreed with him in
thinking the only foreign opinion which carried weight in the United States was
that formed by the English people, but why was it then, when they acknowledged
the value of our moral aid, that the Mexican Government wished to place us in a
position of inferiority vis-it-vis to their northern neighbours? They had never
thought of inserting such an Article in their Treaty with the United States ; why,
therefore, should they seek to do so in any Treaty negotiated with Great Britain ?

M. Fernandez did not reply immediately, but then said something about the
exceptional position of the United States.

In my last interview with his Excellency the President, he was very emphatic
in his declaration that relations must be renewed, and went so far as to intimate
that it was in the permanent interest of his country to do so, as England was
the only Power which the United States were afraid to place in a position hostile to
them.

I have &&c
(Signed) " SPENSER ST. JOHN.

No. 10.

Sir 8. St. John to Earl Granville. — {Received February 28.)

(No. 12. Commercial.)

My Lord, Mexico, January 30, 1884.

I HAVE the honour to acknowledge the receipt of the despatch No. 8,
Commercial, Confidential, of the 17th December, 1883, inclosing an extract from a
Confidential Report by Mr. Crowe relative to the commercial relations of France
and Mexico.

There is one point in this Report which requires notice; referring to the Article
in the German Treaty which limits the right of diplomatic intervention, Mr. Crowe
observes, " The United States have not ratified a similar one as yet." The fact is,
as the American Minister once remarked to me, the Mexican Government have
never dared to make such a proposal to the United States, and it would never be
listened to if they did.

I have &c.
(Signed) ' SPENSER ST. JOHN.

No. 11.

Messrs. Valpy, Chaplin, and Peckham to Earl Granville. — (Received March 1.)

My Lord, 19, Lincoln 9 s Inn Melds, London, February 29, 1884.

REFERRING to our letter of the 16th August last, and the reply which your
Lordship was good enough to send thereto, we shall be greatly obliged if your
Lordship could inform us whether we can make any further communication to our
clients on the subject of this correspondence, having regard to the fact that
diplomatic relations now appear to be re-established with the Mexican Govern-
ment

We have &c
(Signed) ' VALPY, CHAPLIN, and PECKHAM.

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No. 12.

Mr. Currie to Messrs. Valpy, Chaplin, and Peckham.

Gentlemen, Foreign Office, March 6, 1884.

1 AM directed by Karl Granville to acknowledge the receipt of your letter of
the 29th ultimo, and to state that diplomatic relations have not been renewed
between this country and Mexico, and that, therefore, his Lordship can only refer
you to the letter from this Department of the 23rd August last.

I am, &c.
(Signed) P. CURRIE.

No. 13.

Sir S. St. John to Earl Granville. — (Received March 1 7.)
(No. 9.)
My Lord, Mexico, February 16, 1884.

I HAVE the honour to inclose the translation of a Decree increasing by 5 per
cent, the import duties on goods introduced into Mexico. This increase is to take
effect on the 15th of next May.

The Finance Minister, Senor Fuentes Muniz, being unable to face the financial
difficulties of the situation, resigned, and was succeeded by General de la Pefia, the
Director of the Custom-house at Vera Cruz. His first measure was to increase the
import duties, which were previously too high, and his second to endeavour to raise
what has the characteristics of a forced loan, to the amount of 1,000,000 dollars, on
the security of the additional 5 per cent, on the customs duties.

As the amount raised by this loan is only calculated to meet the pressing
expenses of about six weeks, it is reported that the new Minister is contemplating a
tax on capital, to be called an Extraordinary Contribution. Should the system of
forced loans and extraordinary contributions recommence the advance of Mexico
must be checked, as capitalists will scarcely invest their money in a country where
they are exposed to such extortions.

These financial difficulties are evidently the result of a reckless administration
of the revenues, which, properly expended, would be ample to meet every legitimate
requirement.

I have, &c.
(Signed) SPENSER ST. JOHN.

In closure in No. 13.
Extract from the " Monitor Republicano " of February 16, 18S4.

{Translation.)

THE text of the Decree by which President Gonzalez adds 5 per cent, to the
customs duties on and after the 15th May is as follows : —

"In accordance with the authority granted to the Executive by the Law of the
26th May it is declared that the contingency provided for has arisen, and that it is
advisable to make the following Decree : —

" Article J . The import duties paid at the coast and frontiers of the Republic
shall be increased 5 per cent.

" Art. 2. The delay of three months which the clause in Article 2 of the said
Law of the 26th May requires in making this increase will be reckoned from the
date of this Decree to the 15th May next, when the additional 5 per cent, will be
levied.

"Given at the Palace of the Executive, 12th February, 1884."

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No. 14.

Sir S. St. John to Earl Granville. — (Received March 25.)

(No. 10.)

My Lord, Mexico, February 27, 1884.

I HAVE the honour to acknowledge the receipt of the cypher telegram of the
25th instant, informing me that the document inclosed in your Lordship's despatch
No. 27 had been handed to the Mexican Envoy.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 15.

Sir S. St. John to Earl Granville. — (Received March 25.)
(No. 11.)
My Lord, Mexico, February 27, 1884.

IN my despatch No. 9 of the 16th February I informed your Lordship that the
Minister of Finance was endeavouring to raise money in the form of a forced loan.
This measure, however, proved so unpopular that it was set aside, and money was
ultimately obtained from the banks.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 16.

Sir S. St. John to Earl Granville. — (Received May 5.) f
(No. 18.)
My Lord, Mexico, April 3, 1884.

1 HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 4 a of the 23rd February, 1884, containing an account of an interview between
Lord Edmond Fitzmaurice and Seiior Mariscafon the occasion of the presentation
to the latter of the counter-proposal of Her Majesty's Government for the renewal
of relations.

I awaited the delivery of the President's Message before calling on Seiior
Fernandez, as I wished previously to know in what terms his Excellency would refer
to the pending negotiations. Seiior Fernandez informed me that he had received
from Seiior Mariscal a copy of the counter-proposal, together with a despatch
containing his opinions on the document. He considered it inadmissible, as it
reasserted the existence of Conventions which the Mexican Government declared no
longer to exist. Seiior Mariscal added that he did not consider this the last word of
Her Majesty's Government, who, he thought, were trying to gain time in the hope
that the question of the debt might be previously settled. M. Fernandez said that
he agreed with M. Mariscal as to the counter-proposal being inadmissible, and had
consulted with the President whether they should telegraph to M. Mariscal that
opinion, or whether they would direct him to await further instructions. They had
decided to direct him to remain and await further orders.

Having listened to all M. Fernandez wished to say on the subject, which was
but a repetition of his previous communications, 1 asked him whether his objections
did not, in reality, only touch the form in which the document was drawn up. He
had acknowledged that the Government of Mexico ought to pay its debts, and that
evidently one of the first steps to be taken was to know what they really owed to
British subjects. He had also expressed a strong desire that a Treaty of Peace,
Commerce, and Navigation should be signed between the two nations, and he had
on several occasions stated that the most-favoured-nation clause was to be given in
its most ample form. Therefore there was little in the substance of the counter-
proposal to which he objected.

I asked M. Fernandez why the Mexican Government did not immediately take
steps to find out what was the real amount due by instituting an inquiry into the
claims of British subjects. He appeared to agree to this necessity ; and on the
other points I had referred to he had no objections to make, but still he insisted
that all the Conventions and Treaties must be considered as annulled.

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I would take the liberty to point out to your Lordship that the claims of
British subjects are so numerous and of so considerable an amount that to insist on
the Mexican Government settling them before entering on the negotiations for a
Treaty would probably delay any settlement for years. The state of the Treasury
at this moment is that of bankruptcy, and the Government is resorting to every
expedient to raise the money necessary to carry on the different services. It is
certain that from this Administration no money will ever be received, though they
may not object to bind their successors.

M. Fernandez* showed unusual friendliness of manner throughout our interview,
and it was agreed that another project, founded on that of Her Majesty's Govern-
ment, should be drawn up and discussed between us. Should it appear at all
likely to be acceptable to your Lordship, I will forward it.

The first thing to be arrived at appears to me to be the renewal of relations.
The settlement of the Public Debt and of private claims will be much easier when
there is an authorized channel through which they may be officially or unofficially
pressed. I believe it to be the desire of the President that relations should be
renewed before his term of office expires, and it is probable that he would accept
any carefully-worded Agreement which was not opposed to the public declarations
of the Administration.

The elections which determine the choice of a President will take place in June,
and then the President-elect acquires great influence. It is expected that General
Porfirio Diaz will be chosen, and he has shown the most friendly disposition towards
the Special Mission.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 17.

Sir S. St. John to Earl Granville. — (Received May 5.)
(No. 19.)
My Lord, Mexico, April 4, 1884.

I INCLOSE a translation of the paragraph of his Excellency the President's
Message which relates to the Public Debt. It gives no explanation of the recent
negotiations in London. Of one thing, however, I feel assured, that under this
Administration no settlement of the debt will be arrived at which does not afford
very considerable advantages to all those who are employed in bringing about that
settlement. Instead of placing the business in the hands of a responsible house, it
has been as yet intrusted to agents who have no financial character to lose, and who
have, therefore, made use of it to carry on lucrative speculations on the Stock
Exchange.

I have, &c.
(Signed) SPENSER ST. JOHN.

Inclosure in No. 17-

Translation of that part of the President's Message which relates to the Public Debt.

ON the 15th May of the past year the Executive presented to the consideration
of Congress the first suggestions respecting the Public Debt, which resulted in the
Law of the 14th June of the same year. In conformity with that Law, the Executive
has endeavoured by every means in its power to attain the result sought for, in
conformity with the favourable condition of our actual political circumstances, and
with what the decorum and good name of the Republic demanded. Unfortunately,
these efforts have not yet given the satisfactory result which was sought for,
stumbling over obstacles of such a nature as have been thought insuperable, but
which will never weaken the firm purpose of the Executive to give the most prompt
and favourable termination to this affair, and to preserve unassailable not only the
interests but the credit of the Republic.

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No. 18.

Sir S. St. John to Earl Granville. — (Received May 19.)

(No. 21. Very Confidential.)

My Lord, Mexico, April 28, 1884.

I HAVE the honour to inform vour Lordship that a M. Ramon Fernandez
has been appointed as the Mexican kepresenlative in France, and leaves shortly
for his post. He is also, I am informed, intrusted, in conjunction with the Franco-
Egyptian Bank, with powers to arrange the Mexican Debt. M. Fernandez's financial
reputation is not such as to inspire confidence among those who know him, and the
Franco-Egyptian Bank has not, it is thought, sufficiently avoided engaging in
speculative transactions.

As I have before pointed out, the Mexican Government is at this moment
bankrupt, and possesses neither the power nor the will to pay anything to the
bondholders, and the sole object of the present project is to make some specious
arrangement with the bondholders, which will enable the Bank either to float a
loan or obtain a market for Mexican bonds by a guarantee of certain payments
of interest. The present Government goes out" of office on the 1st December, and
will be therefore ready to make arrangements which they will not be called upon to
fulfil.

The next President is almost certain to be General Diaz, and he, I am informed,
strongly disapproves of the bondholders making any arrangement with the present
Administration, as he knows it is but a scheme to raise money for the use of the
present occupants of office.

The sole object of the present renewed proposals to the bondholders is, I fear,
but a stock-jobbing speculation, in which certain members of the Government are
interested with the Directors and agents of the Franco-Egyptian Bank.

I am informed that this Bank proposes to take a loan of 20,000^000 dollars at, it
is reported, 25 per cent., and keep back a portion of the capital to meet the interest
of the Mexican Debt for a certain period. It is thought that the certitude of the
payment of some interest will send the bonds up to a price which would enable the
Bank to get rid of its new loan at a profit ; at the same time, its friends are reported
to be quietly buying stock, in order also to reap the benefit of the rise.

Those, therefore, who represent the Mexican bondholders would do well to
remember that they are about to deal with the Representatives of a moribund and
discredited Government, and that the new Administration may be unwilling to
ratify arrangements made with the sole object of increasing the fortunes of unscru-
pulous speculators.

The elections for the next President take place in June, and if the election of
General Porfirio Diaz be then secured, it would be prudent for the bondholders to
await his advent to office before entering into any permanent arrangements.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 19.

Sir S. St. John to Earl Granville. — (Received May 19.)

(No. 22. Very Confidential.)

My Lord, Mexico, April 28, 1884.

1 HAVE the honour to inform your Lordship that after several interviews with
M. Fernandez on the subject of the Preliminary Agreement for the renewal of
relations, I drew up a project which 1 thought might meet the views of both
Governments. On handing it to him, 1 stated that I had no authority whatever to
make this proposal to the Mexican Government, and that it must for the present be
considered as merely a private suggestion of my own. Some days later
M. Fernandez called, and left with me a counter-proposal. On examination I found
it contained several points which could not be accepted, and pointed out my
objections to them. He promised to lay these before his Excellency the President,
and last week he called and asked whether we could not include in a .Secret
Article the views of the Mexican Government. I replied that I did not see the
necessity of a Secret Article, as I could embody in a Confidential despatch the

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meaning attached by Her Majesty^s Government to the different Articles of the
Agreement. He informed me that his Excellency the President, whilst willing to
accept my proposal with some modifications and necessary explanations, thought
it would be best before proceeding further to ascertain the views of Her Majesty's
Government, and he requested me to forward the several documents to the Foreign
Office.

I have the honour to inclose a copy of my proposal, as well as a translation of
M. Fernandez's counter-project.

The opening paragraph differs principally from the project submitted to
M. Mariscal in leaving out the first few lines, which contain, in the opinion of
the Mexican Government, matters of controversy, and do not appear absolutely
necessary.

Article I refers to the claims of British subjects, and may seem not to be
sufficiently precise in explaining how the proved claims are to be met, but legislative
sanction in this country can be procured to any measure the Government desire to
carry out, or neglect, as the will of the President appears to be the only law
recognized in this Republic. The presence of a Legation in Mexico would* be of
service in keeping before the Government the necessity of carrying out the stipula-
tions of this Article in a satisfactory manner.

The claims of British subjects extend back for forty years, and amount to very
large sums, and will require a lengthened examination before a just settlement can
be arrived at, so that to defer the renewal of relations until the conclusion of this
inquiry would be to adjourn the renewal perhaps for years.

It must not be forgotton that the present Government is not capable of paying
any claims; by its financial mismanagement it has plunged the country into a
state of bankruptcy, temporary it is probable, but which is likely to last until the
end of the present Administration.

In M. Fernandez's Article I it is stated that the Mexican Government will
make of itself an inquiry into the claims without any diplomatic interference. I told
him that that proposal was inadmissible, as the English Government could not give
up its diplomatic right to watch over and support the interests of Her Majesty's
Government.

Article II is the same as in the counter-proposal.

Article III. The first sentence is the same, but as M. Fernandez pointed out that
their Treaty with the United States was only for six years, and that with Germany
for eight, he thought that it was necessary to introduce a limit, and proposed two
years as ample time in which to negotiate a Treaty. I worded the second sentence
so as to secure the advantage of the favoured-nation clause for any period of time
during which it might be granted to other nations. M. Fernandez, however, said
they could not consent to so indefinite an Article, but added that the time would
naturally be extended in the Treaty.

M. Fernandez began his fourth Article with the words, " In virtue of the non-
subsistence of the old Treaties, Conventions, and international arrangements between
Mexico and Great Britain." I pointed out to him that Her Majesty's Government
did not accept this view of the question, and would not, therefore, agree to an Article
worded in that form, but that your Lordship might perhaps accept Article IV in my
proposal.

As it is not probably the intention of Her Majesty's Government to insist on the
literal carrying out of the old Treaties and Conventions, 1 think that Article IV might
meet the views of both Contracting Parties. It appears useless to insist on pre-
serving these old arrangements, when the suggested Agreement would place the
creditors in the favourable position of not only having their claims acknowledged
afresh, but of having the advantage of diplomatic support.

The acceptance of the suggested arrangement would show a remarkable change
of view from the time when M. Fernandez first addressed his note to me in July last.
In that he proposed a Protocol in which Her Majesty's Government were to
acknowledge the non-subsistence of all our international arrangements with Mexico
from the date of the European intervention, and the abandonment of all claims of
British subjects on the Mexican Government.

The despatch which it is proposed to address to the Secretary of State on the
exchange of the Agreement would explain that the first Article, in mentioning the
amounts which have already been acknowledged, referred particularly to the
balances due under former Conventions. And that, whilst reserving its diplomatic
right to support when necessary the past claims of Her Majesty's subjects, and

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conside ing this present Agreement as sufficient to protect the interests of the
claimants, Her Majesty's Government understood by Article IV that in the future it
was not intended to support any claim under the provisions of the old Treaties and
Conventions, which, after the signature of the present international compact, would
be considered as no longer binding. The Conventions authorized an interference in
the internal affairs of the country, which could not at present be attempted.

The reason why M. Fernandez so much insisted on this explanatory despatch
was that he feared that British subjects might bring up claims for compensation for
having been denied the treatment of citizens of Mexico secured to them by Treaty.
It is a remarkable fact, however, that I have not as yet heard of a single claim for
injuries done to a British subject since the cessation of diplomatic relations nearly
eighteen years ago.

I think that the advantages of my suggested project are that, first, it secures
the acceptance of the point of view upheld by Her Majesty's Government that the
Treaty and Conventions only cease to be binding on the signing of a new compact,
and not from the date of the intervention in 1862 ; and, secondly, it secures to the
creditors the official acknowledgment of the balances due of the Convention Debt,
and to the claimants an official promise of inquiry and settlement. The form of the
inquiry would probably be more satisfactorily settled by the influence of the Mission
than by any previous arrangement.

I have introduced the question of the explanatory despatch as M. Fernandez
assured me that his Excellency the President was anxious that every point should
be clear to prevent future misunderstandings, though I do not see that it is very
necessary.

After the weakness shown by the Representatives of the European Powers in
abandoning all their Treaties and claims, and the readiness they show to give Up
even their diplomatic rights, it was difficult to make the authorities here believe
that we would not ultimately do the same. I told M. Fernandez that my suggested
Agreement, I thought, went as far as it was possible to go in our desire to meet the
views of the Mexican Government, and that whilst Her Majesty's Government might
accept it, they most certainly would not go a step beyond it.

I have, &c.
(Signed) SPENSER ST. JOHN.

In closure 1 in No. 19.
Proposal of Sir S. St. John.

WHEREAS the Governments of Great Britain and Mexico are desirous to
re-establish diplomatic relations between the two countries on the most cordial
footing, and in a manner consistent with the honour and the interests of both
nations ; and whereas the said Governments have each of them appointed a Special
Envoy accredited to the other of them with the object of entering into negotiations
for that purpose :

The following Preliminary Arrangement is agreed to by and between the High
Contracting Parties : —

I. The Government of Mexico agree to institute an inquiry into all the
pecuniary claims of British subjects, and to make provision for the liquidation of
the amount found due, as well as for the payment of those amounts which have
already been acknowledged.

II. The High Contracting Parties agree to negotiate a new Treaty of Peace,
Commerce, and Navigation, which shall exclusively govern the Conventional
relations between them.

III. Pending the conclusion of such new Treaty, the two countries will extend to
each other the treatment of the most favoured nation in all matters whatsoever. It
is understood, however, that this most- favoured-nation clause is limited in its
duration to the period of time agreed to by Mexico in her Treaties with other
countries.

IV. Pending also the conclusion- of the Treaty referred to in Article II, it is
agreed by the High Contracting Parties that this present arrangement will be
considered as the only diplomatic Agreement binding on the two Governments.

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Inclosure 2 in No, 19.

Counter-Proposal by M. Fernandez.
{Translation.)

WHEREAS the Governments of Mexico and Great Britain desire to re-establish
diplomatic relations between the two countries on the basis of the greatest cordiality,
and in a manner conformable with the honour and interests of both nations, and
whereas each of the said Governments has named a Special Envoy accredited to the
other with the object of entering into negotiations for this purpose:

The High Contracting Parties have agreed on the following Preliminary
Arrangement: —

Article I. The Mexican Government will, of its own accord and without any
further intervention of the British Government, make the following dispo-
sitions :—

(1.) It will order an impartial investigation to be made in regard to all the
money claims of British subjects which are based on acts of the Federal Govern-
ment of Mexico anterior to the date of the exchange of the ratiGcations of these
Preliminaries.

(2.) It will make arrangements for the liquidation of the sums which may be
found to be due, as also for the payment of those which are already recognized by
the same Federal Government.

Art. II. The British Government, on its side, will examine impartially, and of its
own accord and without any further intervention of the Mexican Government, all the
money claims of Mexican citizens based on acts of the British Government anterior
to the date of the exchange of the ratifications of these Preliminaries, and will order
the liquidation and payment of the sums which may prove to be due them.

Art. III. The High Contracting Parties agree to concede reciprocally to each
other, for two years counting from the date of the exchange of the ratifications of
these Preliminaries, the treatment of the most favoured nation in every particular.
This stipulation does not hinder the two Governments from drawing up immediately
a regular Treaty of Peace, Friendship, Commerce, and Navigation on the same
basis of the most- favoured-nation treatment.

Art. IV. In view of the non-subsistence of the old Treaties, Conventions, and
international Arrangements between Mexico and Great Britain, the stipulation
contained in the first paragraph of the third Article of these Preliminaries, or in the
other case the Treaty of Peace, Friendship, Commerce, and Navigation of which
mention is made in the said third Article, will in future exclusively govern the
the Conventional relations between the two Governments, so long as no new Treaties,
Conventions, or Arrangements are concluded.

Art. V. These Preliminaries will be ratified respectively in accordance with the
Constitutions of each country, and the ratifications will be exchanged ....

No. 20.

Se&or Mariscal to Lord E. Fitzmaurice. — (Received May 19.)

{Unofficial.)

Dear Lord E. Fitzmaurice, 73, Queen's Gate, S.W., May 17, 1884.

AS I promised, at the interview with which you favoured me to-day, 1 inclose
copies of a project and letter of Sir Spenser St. John, which have been communi-
cated to me by M. Fernandez. I had the honour to explain to you that my object
was to ascertain what was the comprehension of the term " pecuniary claims " used
by Sir Spenser, instead of the different words contained in the preamble and
1st Article of the counter-project which I received from you.

Hoping that I may be kindly informed when you are prepared to converse on
the matter again, I remain, &c.

(Signed) IGN°. MARISCAL.

Inclosure 1 in No. 20.
Draft of Agreement.

WHEREAS the Governments of Great Britain and Mexico are desirous to
re-establish diplomatic relations between the two countries on the most cordial
footing, and in a manner consistent with the honour and the interests of both
nations, and whereas the said Governments have each of them appointed a Special
Envoy, accredited to the other of them, with the object of entering into negotiations
for that purpose :

The following Preliminary Arrangement is agreed to by and between the High
Contracting Parties : —

Article I. The Government of Mexico agree to institute an inquiry into all the
pecuniary claims of British subjects, and to make provision for the liquidation of
the amount found due, as well as for the payment of those amounts which have
already been acknowledged.

Art. II. The High Contracting Parties agree to negotiate a new Treaty of
Peace, Commerce, and Navigation, which shall exclusively govern the Conventional
relations between them.

Art. III. Pending the conclusion of such new Treaty, the two countries will
extend to each other the treatment of the most favoured nation in all matters
whatsoever.

Inclosure 2 in No. 20.

Sir S. St. John to SeAor Fernandez.
Cher M. Fernandez, Le 18 Avril, 1881.

JE crois qu'en ajoutant un paragraphe k Y Article III, et avec Paddition de
PArticle IV, il ne pourrait y avoir le moindre malentendu, et que nous pourrions
arranger Paffaire sans retard.

Je voudrais bien finir avec les Pr^liminaires. J'ai 6crit les Articles sur l'autre
page.

Tou jours, &c.
(Sign6) SPENSER ST. JOHN.

Inclosure 3 in No. 20.
Draft of Articles III and IV of Agreement.

ARTICLE III. Pending the conclusion of such new Treaty, the two countries
will extend to each other the treatment of the most favoured nation in all matters
whatsoever. It is understood, however, that this most-favoured-nation clause is
limited in its duration to the periods of time agreed to by Mexico in her Treaties
with other countries.

Art IV. Pending also the conclusion of the Treaty referred to in Article II, it is
agreed by the High Contracting Parties that this present Arrangement will be
considered as the only diplomatic Agreement binding on the two Governments.

No. 21.

Mr. Currie to Mr. Bouverie. •

(Confidential.)
Sir, Foreign Office, May 20, 1884.

I AM directed by Earl Granville to transmit to you, for the confidential
information of the Committee of the Council of Foreign Bondholders, the accom-
panying despatch from Her Majesty's Special Envoy in Mexico in regard to the
debt of that Republic*

I am to request that this despatch may be returned to the Foreign Office when
done with.

I am, &c.
(Signed) P. CURRIE.

• No. 17.

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16
No. 22.

Lord E. Fitztnaurice to Sefior Mariscal.

Dear Senor Mariscal, Foreign Office, May 21, 1884.

I BEG leave to acknowledge the receipt of your letter of the 17th instant,
inclosing copies of a proposal and letter from Sir S. St John, which have been
communicated to you by M. Fernandez.

I shall lose no time in laying your communication before Lord Granville, and I
shall have the honour of addressing a further letter to you on the subject.

Believe me &c.
(Signed) EDMOND F1TZMAURICE.

No. 23.

Sir S. St. John to Mr. Jervoise. — (Received May 23.)

(Extract.) Mexico, May 3, 1884.

I FORGOT to mention that in the explanatory despatch with which it was
proposed to accompany the suggested project, in dwelling on the first Article, we
might introduce some distinct view of the way in which Her Majesty's Govern-
ment understood that the balances of the Convention debts were to be settled. I
might use the singular, as the latter Convention may be considered to have super-
seded the former.

No. 24.

Earl Granville to Sir S. St. John.

(No. 15. Confidential Ext)

Sir, Foreign Office, May 31, 1884.

IN reply to your despatch No. 22, Very Confidential, of the 28th ultimo, I have
telegraphed to you this day that the draft project for the renewal of relations
between this country and Mexico, which you had drawn up and communicated to
Senor Fernandez, was approved by Her Majesty's Government, with the exception
of the last paragraph of Article HI, the omission of which you are instructed to press
upon the Mexican Governmnnt.

Full instructions for your guidance in this matter will be forwarded to you by
mail.

I am, &c.
(Signed) GRANVILLE.

No. 25.

Earl Granville to Sir S. St. John.
<No. 16.)
Sir, Foreign Office, June 2, 1884.

I TRANSMIT herewith, for your information, a copy of a letter addressed to
Lord E. Fitzmaurice by Senor Mariscal, and marked Unofficial, relative to the
pending negotiations for the renewal of diplomatic relations with Mexico.*

I am, &c.
(Signed) GRANVILLE.

* No. 20.

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No. 26.

Sir S. St. John to Earl Granville. — {Received June 6.)
(No. 26.)
My Lord, Mexico, May 16, 1884.

I HAVE the honour to inform your Lordship that the Reciprocity Treaty
between the United States and Mexico was voted by the Mexican Senate in secret
Session on the 14th instant. I do not know what influence was brought to bear on
the Government to produce this result, but only on the 11th instant 1 was informed
by the Acting Secretary of State for Foreign Affairs that the Government had
decided to defer the consideration of the Treaty to the Sessions which are held in.
September.

I have qlc
(Signed) ' SPENSER ST. JOHN.

No. 27.

Earl Granville to Sir S. St. John.

(No. 17. Confidential.)

Sir, Foreign Office, June 7, 1884.

YOUR despatch No. 22, marked Very Confidential, of the 28th April last,
containing a Report of your recent communications with Senor Fernandez as to the
form to be adopted in drawing up the proposed Preliminary Agreement for the
renewal of relations between this country and Mexico, has been received and laid
before the Queen.

Her Majesty's Government have learned with great satisfaction that the
President of Mexico was willing to accept the Project prepared by you (a copy of
which accompanied your despatch), with some modifications and necessary
explanations ; but as his Excellency expressed a wish, before proceeding further in
the matter, to ascertain the views of Her Majesty's Government thereon, I have now
to make to you the following observations.

Your Report on the recent communications that have passed between yourself
and the Mexican Gocernment has been carefully considered, and Her Majesty's
Government are prepared to authorize you to sign an Agreement in the terms you
have suggested, with the omission of the last sentence of Article III, which is thus
worded : —

" It is understood, however, that this most-favoured-nation clause is limited in
its duration to the period of time agreed to by Mexico in her Treaties with other
countries."

That part of your proposed Agreement which limits the time for the duration of
the most-favoured-nation treatment is, in the opinion of Her Majesty's Government,
open to serious objection.

In accepting the proposed Agreement, Her Majesty's Government will abandon
their rights under all previous Conventions ; and in so doing, they will incur a great
responsibility, which could only be justified by the attainment of the object which
both countries have had in view, that object being the renewal of commercial
relations on a satisfactory footing.

Considering the difficulties encountered by other countries in their negotiations,,
the prospect of a new Treaty of Commerce being concluded between Great Britain
and Mexico within a reasonable period is very uncertain, and Her Majesty's Govern,
ment would be exposed to the risk of losing all benefit under the proposed Agreement
were its most-favoured-nation clause to be limited to the duration of certain existing
Treaties.

I have, therefore, to instruct you to urge on the Mexican Government the
omission of the proviso in question ; but if they should absolutely refuse to do so, it
will be indispensable that a simultaneous Agreement should be arrived at as to the
bases of a new Treaty between Great Britain and Mexico.

In order to facilitate your further negotiations on this point, the draft of a new
Treaty will be prepared forthwith and forwarded to you for communication to the
Mexican Government, and Her Majesty's Government will be prepared to consider,,
in a liberal and friendly spirit, any additions or alterations which the Mexican
Government may suggest therein.

[309J F

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In conclusion, I have to express to you the entire approval of Her Majesty's
Government of the ability and patience with which you have laboured to carry these
protracted negotiations to a satisfactory conclusion.

I am, &c.
(Signed) GRANVILLE.

No. 28.

Earl Granville to Sir S. St. John.

(So. 18. Confidential.)

Sir, Foreign Office, June 7, 1884.

WITH reference to my previous despatch No. 17 of this day's date, I have to
state to you that I concur in the suggestion contained in your despatch No. 22 of
the 28th April last, that in the event of the proposed Preliminary Agreement being
concluded, you should address a note to the Mexican Government explanatory of
the meaning attached by Her Majesty's Government to the 1st and IVth Articles.

As regards the mode of examination and liquidation of the outstanding British
claims, the 1st Article leaves it entirely in the hands of the Mexican Government,
and they would probably object to supplementing the Agreement with any express
stipulations on the subject. If that be so, it would be very desirable that you should
enaeavour to come to some practical understanding on the matter, and especially as
to the presence during the investigation of a representative on behalf of the
British claimants.

I am, &c.
(Signed) GRANVILLE.

No. 29.

Earl Granville to Sir S. St. John.
{No. 21.)
Sir, Foreign Office, June 20, 1884.

WITH reference to my despatch No. 17, Confidential, of the 7th instant, I
transmit to you herewith, for your information and guidance, and for com-
munication to the Mexican Government, the draft of a Treaty of Friendship,
•Commerce, and Navigation between Her Majesty and the Republic of Mexico,
which has been prepared on behalf of Her Majesty's Government.

This Treaty is drawn on the general principle of mostfavoured-nation
treatment, in conformity with the terms of Treaties recently concluded by this
country and of British law. It does not seem to require much explanation. If,
however, after considering; it, you wish to refer to me on any points, you are at
liberty, on making a suitable explanation to the Mexican Government, to defer com-
municating the draft of Treaty.

You will observe that the last paragraph of Article III is taken from Article X
of the Treaty of the 5th December, 1882, between Mexico and Germany, aod that
the provisions of that Treaty have been followed in some other respects, more
particularly in Article V, relative to rights and privileges of residence. The stipula-
tions in regard to rupture of friendly relations contained in Article XIV are similar
in effect those contained in Article XVI of the German Treaty. It does not, how-
ever, appear to be necessary to insert an Article similar to Article XVII of the
German Treaty, relative to the Declaration of Paris, because Mexico has already
acceded to Articles II, III, and IV of that Declaration. Nor is it necessary to adopt
the provisions of Article XVIII of the German Treaty, because on the one hand the
position of public Ministers is sufficiently determined by international law, and
because Her Majesty's Government do not think it advisable to include in the new
Treaty the stipulations agreed to by Germany with respect to the complaints of
private individuals, or losses sustained in civil war or from Indian raids.

With regard to Article XV, you should explain that it is the form of Colonial
Article now adopted in British Treaties, with the view to meet the powers of local
administration possessed by British Colonies. On this statement it is expected that
no difficulty will arise. Article XVI seems to contain useful provisions for the
purpose of settling any controversies between the two Governments.

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As regards the ratiGcation of the Treaty, in order to meet all contingencies it
will he better to stipulate (as is done in Article XVIII) that the exchange shall be
made "as soon as possible/ 1 rather than to fix a particular date. In the course of
the negotiation you may arrange at your discretion with the Mexican Plenipo-
tentiary whether it shall be effected at Mexico or in London.

Verbal alteration which does not change the intention and sense of any Article,
but which is required for the sake of Spanish idiom or any reason which seems to be
sufficient, may be agreed to by you without reference home. If decided objection is
taken to any of the proposed stipulations, it must be reported, and my decision be
awaited. If any objection made is limited to doubt as to interpretation, you may
at your discretion sign the Treaty, with a reservation, recorded in notes exchanged
between the Representatives, that a Declaration to remove such doubt shall be
signed at the time of the exchange of ratifications.

I have only to add that you should bear in mind the statement made in my
despatch of the 7th instant, that Her Majesty's Government will be prepared to
consider in a liberal and friendly spirit any additions or alterations, not at variance
with the general object of the Treaty, which the Mexican Government may suggest
in the draft now communicated. You will, however, act as you think most prudent
in the manner in which you will make this statement to the Mexican Government.

I am, &c.
(Signed) GRANVILLE.

No. 30.

Lord E. Fitzmaurice to Sefior Mariscal.
(Private.)
Dear Senor Mariscal, Foreign Office, June 20, 1884.

IN your private note to me of the 17th May you inquired what was the
meaning of the words iC pecuniary claims" employed in the 1st Article of the
draft Project of Agreement drawn up by Sir Spenser St. John, and I now beg to
inform you that those words refer to the " international claims" and " public debts n
mentioned in the preamble and 1st Article of the previous Project of Arrangement,
of which I placed a copy in your hands on the 23rd February last.

I am glad to be able to add that Sir S. St. John has been authorized to sign
an Agreement in the terms proposed by him to Senor Fernandez, with the omission
of the last sentence of Article III, which limits the duration of the most-favoured*
nation clause to the period of time agreed to by Mexico in her Treaties with other
countries.

It is considered that such a limitation is open to serious objection, for, in
accepting the proposed Arrangement, Her Majesty's Government will abandon their
rights under all previous Conventions, and in so doing they will incur a great
responsibility, which could only be justified by the attainment of the object which
both countries have had in view, namely, the renewal of commercial relations on a
satisfactory footing, and were the most-favoured-nation clause to be limited as
proposed in Article Til, Her Majesty's Government would be exposed to the risk of
losing all benefits under the proposed Agreement.

1 may also mention, for your information, that, with a view to facilitating the
negotiations, a draft of a new Commercial Treaty will be forwarded with the least
possible delay to Sir S. St. John for communication to the Mexican Government.

Believe me o&c.
(Signed) EDMOND FITZMAURICE.

No. 31.

Lord E. Fitzmaurice to Sefior Mariscal.

Dear Senor Mariscal, Foreign Office, June 21, 1884.

ACCORDING to the promise I gave you this afternoon, 1 send a copy of the
proposed Treaty of Friendship, Commerce, and Navigation, which will be sent by
this day's post to Sir S. St. John for submission to the Mexican Government.

Believe me, &c.
(Signed) EDMOND FITZMAURICE.

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No. 32.

Draft Addition to Article III proposed by Sefior Mariscal. — {Communicated by
Sefior Mariscal to Earl Granville 9 June 21.)

IT is understood, however, that any concession made to the most favoured
nation shall be extended to the other Contracting Party, freely, if the concession
was freely made, or upon the same conditions, if it was conditional.

No. 33.

Sefior Mariscal to Lord E. Fitzmaurice. — {Received June 24.)
{Private.)
Dear Lord E. Fitzmaurice, 73, Queen's Gate, June 23, 1884.

ALLOW me to thank you for the copy of the proposed Treaty with Mexico
which was sent last Saturday to Sir Spenser St. John, which copy you inclosed to
me in your note of the same day.

I remain, &c.
(Signed) IGN°. MARISCAL.

No. 34.

Lord E. Fitzmaurice to Sefior Mariscal.
(Private.)
Dear Sefior Mariscal, Foreign Office, June 24, 1884.

I HAVE the honour to inform you that the addition to Article III of the draft
Agreement for the renewal of diplomatic relations between this country and
Mexico, of which you gave me a copy on the 21st instant, has been fully considered,
but I regret to say that the conclusion arrived at is that it would be inadmissible,
as being directly opposed to the principles which now govern the commercial policy
of this country.

I may also point out that, owing to the Reciprocity Treaty between the
Republic of Mexico and the United States, such a clause would be sure at this
moment to excite particular attention in this country ; and would probably cause
the commercial classes to assume a hostile attitude to the Treaty we are engaged
in negotiating.

I am, &c.
(Signed) EDMOND FITZMAURICE.

No. 35.

Earl Granville to Sir S. St. John.
(No. 23. Confidential.)
&ir, Foreign Office, June 26, 1884.

I TRANSMIT herewith, confidentially, for your information, a copy of a
Memorandum left at the Foreign Office by Sefior Mariscal on the 21st instant,
containing the text of an addition which he suggested should be made to Article HI
of the proposed draft Agreement for the renewal of diplomatic relations between
this country and Mexico.*

A copy of a private letter on this point which has been addressed to Sefior
Mariscal is also inclosed. f

I am, &c.
(Signed) GRANVILLE.

* Mo. 32. t No. 34.

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No. 36.

Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, June 27, 1884, 3-15 p.m.

MY No. 17.
Draft Treaty posted 20th. Copy given to Mexican Envoy here.

No. 37.

Sefior Mariscal to Lord E. Fitzmaurice. — (Received June 28.)
(Private.)
Dear Lord E. Fitzmaurice, 73, Queen's Gate, June 26, 1884.

I BEG to acknowledge the receipt of your private note of the 24th instant,
informing me that my suggestion for an addition to Article III of the draft Agree-
ment presented in Mexico oy Sir Spenser St. John cannot be accepted. While I
regret that conclusion, I am thankful for the attentive consideration given to that
personal suggestion of mine.

I remain, &c.
(Signed) IGN°. MARISCAL.

No. 38.

Sir S. St. John to Earl Granville. — (Received July 9.)

(Telegraphic.) Mexico, July 8, 1884.

MEXICAN Government consent to favoured. nation clause in Preliminary
Agreement for six years certain, with a twelvemonth notice of abrogation. Shall I
sign ?

No. 39.

Sir S. St. John to Earl Granville. — (Received July 15.)

(Telegraphic.) Mexico, July 15, 1884.

ANSWER desired to telegram of 8th July.

No. 40.

Earl Granville to Sir S. St. John.
(Secret.)
(Telegraphic.) Foreign Office, July 16, 1884, 1'45 p.m.

YOUR telegrams of 8th and 15th.

Is there, in your opinion, reasonable prospect of a Commercial Treaty being
concluded on bases sent to you ?

No. 4J.
Earl Granville to Sir S. St. John.

(No. 27. Secret. Ext.)

Sir, Foreign Office, July 16, 1884.

I HAVE received your telegrams of the 8th and 15th instant, in which you
state that the Mexican Government are willing to grant most-favoured-nation
treatment for six years certain, with a twelvemonth's notice of abrogation, in the
Preliminary Agreement which you were authorized to sign, conditionally, by my
despatch No. 17, Confidential, of the 7th ultimo.

Before sending you a definite reply to your inquiry whether you may sign the
f309] G

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Agreement on these terms, I should be glad to learn from you whether you are of
opinion that there is any reasonable prospect that the Mexican Government will be
disposed to conclude a Treaty on the bases of the draft Treaty of Friendship,
Commerce, and Navigation which was forwarded to you with my despatch No. 21
of the 20th ultimo.

The substance of this despatch has been sent to you by telegraph this day.

I am, &c.
(Signed) GRANVILLE.

No. 42.

Sir S. St. John to Earl Granville. — (Received July 18.)

(Telegraphic.) Mexico, July 17, 1884.

AGREEMENT secures for seven years certain treatment of most favoured
nation in all matters whatsoever.

There is reasonable prospect of Commercial Treaty being concluded on bases
sent to me.

No. 43.

Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, July 19, 1884, 6 p.m.

TOUR telegram of 17th.

You may sign Agreement as proposed by you on 8th instant.
Proceed with Commercial Treaty as rapidly as possible.

No. 44.

Earl Granville to Sir S. St. John.
(No. 29. Ext.)
Sir, Foreign Office, July 19, 1884.

I HAVE received your telegram of the 17th instant, pointing out that the Pre-
liminary Agreement for the renewal of relations with Mexico, which you propose to
sign, secures the most-favoured-nation treatment in all matters whatsoever for
seven years certain, and expressing a favourable opinion as to the prospect of con-
cluding a Commercial Treaty on the bases communicated to you with my despatch
No. 21 of the 20th ultimo.

In these circumstances, Her Majesty's Government are prepared to accept the
further concession offered by the Mexican Government, and to waive the objections
they have hitherto felt as to acquiescing in a limit for the duration of the most-
favoured-nation clause of the Agreement. I have accordingly intimated to you
to-day by telegraph that you may sign the Agreement as proposed in your telegram
of the 8th instant.

I request that you will now proceed as rapidly as possible with the negotiations
for a Treaty of Friendship, Commerce, and Navigation between this country and
Mexico.

I am, &c.
(Signed) GRANVILLE.

No. 45.

Lord E. Fitzmaurice to SeHor Mariscal.

Dear Seiior Mariscal, Foreign Office, July 23, 1884

I HAVE the honour to inform you that instructions have been sent to Sir S. St.
John to sign the Preliminary Agreement. I will not fail to communicate further as
soon as we hear again from Sir S. St. John.

I am, &c.
(Signed) EDMOND FITZMAURICE.

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No. 46.

Sir S. St. John to Earl Granville. — (Received July 31.)

(Telegraphic.) Mexico, July 30, 1884.

MEaICAN Minister in London protests against Agreement; not yet signed.

No. 47.

Sir 8. St. John to Earl Granville. — (Received August 1.)
(No. 27.)
My Lord, Mexico, July 14, 1884.

I HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 17, Confidential, of the 7th June, 1884, referring to the proposed Preliminary
Agreement for the renewal of relations between England and Mexico.

I immediately entered into communication with M. Fernandez on the subject of
the limitation of the duration of the most-favoured-nation clause. He agreed to
extend the term to six years, with one year's notice of an intention to terminate it,
but he found it impossible to agree to an unlimited time.

On the 8th instant I addressed a telegram to your Lordship asking whether I
should not sign the Agreement, but receiving no answer, and as M. Fernandez was
showing some anxiety to terminate the affair, I have this day forwarded another
telegram, stating that an answer was desired to that sent on the 8th.

I observe that in the proposed Treaty, copies of which I received this morning,
the time of duration is fixed at ten years, with one year's notice. I do not antici-
pate any great difficulties in negotiating this Treaty. Should M. Fernandez decline
to sign it without the insertion of the XVIIIth Article of the German Treaty, it
must be remembered that he is not likely to be Minister for Foreign Affairs for any
length of time, as on the 1st December there is a change of Government, and
entirely new men will take charge of the different offices.

Though the Preliminary Agreement accepted by the Mexican Government is
very simple in form, it is as much a Convention for the settlement of claims as any
they have previously signed. I do not anticipate useful results from any action of
the present Government, but I expect very different conduct from that of General
Pornrio Diaz, who appears to have been chosen President yesterday without
opposition.

[ KoyC &LC

(Signed) ' SPENSER ST. JOHN.

No. 48.

Memorandum of Conversation between Lord E. Fitzmaurice and Sefior Mariscal,

August 1, 1884.

THE Mexican Minister called here this morning and saw Sir J. Pauncefote
and myself. We did not read Sir Spenser St. John's telegram to him, but simply
repeated what bad been communicated to him by letter, viz., that difficulties had
arisen in Mexico, and that we hoped to be able to remove them. M. Mariscal
thereupon informed us that what had happened, so far as he knew — though he was
not certain — was this: after our last conversation but one he had informed his
Government of the sense which, in his opinion, after that conversation, should be
attached to the 1st Article of the proposed Agreement. That Article, as he
understood it, simply substituted a new Convention for the old Convention. He
dwelt especially on the words "agree" and "liquidate." M. Fernandez had
thereupon probably felt that he and Sir Spenser St. John had not understood the
Agreement in the same way, and hence the difficulty.

We explained to M: Mariscal that we thought that he had overstated the
import of the 1st Article, while at the same time we quite understood the necessity
his Government was under to deal carefully with 1 the subject, especially in conse-
quence of dangers in the Senate, to which M. Mariscal had alluded.

We then proceeded to discuss the Article with a view of finding a way out of
the difficultv.

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M. Mariscal suggested saying nothing at all about the debt and the Conven-
tion. I reminded him that exact!}' a year ago I had proposed this to him, and he
had accepted it ; but that M. Fernandez had objected. What security was there
M. Fernandez would not do this again ?

M. Mariscal said he thought M . Fernandez would not object now, but he did not
seem to have any good reason for this belief.

Sir Julian Pauncefote then suggested that Article I should be recast and made
part of the preamble.

M. Mariscal said this seemed to be a good suggestion, and we proceeded to
discuss a new draft with a view to submitting it to Lord Granville.

Ultimately we agreed that the following words would best meet the case : —

To add to the preamble, after " purpose ": —

u And whereas the Government of Mexico propose to institute an inquiry into
all the pecuniary claims of British subjects, and to negotiate directly with the
claimants, with a view to the settlement thereof."

Article I to disappear.

Article II to be Article I, and so on.

1 send the necessary documents herewith.

E. F.

August 1, 1884.

No. 49.
Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, August 2, 1884, 9'10 a.m.

YOUR telegram of the 30th ultimo.

Have discussed difficulty with Envoy. Hope to arrange it. Await further
instructions.

No. 50.

Earl Granville to Sir S. St. John.
(No. 31. Ext.)
Sir, Foreian Office, August 2, 1884.

WITH reference to your telegraphic despatch of the 30th ultimo, informing:
me that, in consequence of the unfavourable representation which had been received
by the Mexican Government from their Special Envoy in this country in regard to
the draft Agreement for the conclusion of an Anglo-Mexican Commercial Treaty,
you had been unable to carry out the instructions contained in my telegram of the
19th ultimo, and that the Agreement was consequently not yet signed, 1 have to
acquaint you that, in the course of a conversation held yesterday between Lord
E. Fitzmaurice and Senor Mariscal, the question was fully discussed, and there
appears to be reason to hope that a satisfactory arrangement may shortly be
arrived at.

I have, therefore, to request that you will take no steps in the matter until the
receipt of further instructions.

The substance of the foregoing was communicated to you this day by
telegraph.

I am, &c.
(Signed) GRANVILLE.

No. 51.

Sir S. St. John to Earl Granville. — (Received August 4, 9 a.m.)

(Secret and Confidential.)

(Telegraphic.) Mexico, August 4, 1 884.

SECRETARY of State for Foreign Affairs states President rejects protest of
Envoy, and accepts Agreement without alteration.

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No. 52.

Sir 8. St. John to Earl Crranville. — (Received August 5.)

(No. 28. Confidential.)

My Lord, Mexico, July 17, 1884.

I HAVE the honour to acknowledge the receipt of your Lordship's telegram,
Secret, of the 16th July, 1884, inquiring whether, in ray opinion, there is a
reasonable prospect of the conclusion of a Commercial Treaty on the bases of the
project sent to me. I have this day replied that there is a reasonable prospect.
I have also brought to your Lordship's notice that, in the opinion of M. Fernandez,
the Preliminary Agreement contains stipulations which will secure to England the
treatment of the most favoured nation in all matters whatsoever. In fact, it
will be equivalent to a most-favoured-nation Commercial Treaty for seven years
certain.

As soon as I receive your Lordship's instructions as to signing the Preliminary
Agreement I propose to submit the draft Treaty to M. Fernandez, but should he
make any serious objections, I will not press it until after the ratification of the
Agreement by Congress, which meets in September next.

I think there is a very friendly spirit towards England pervading political circles
here, not only among those who are now in office, but among the men who will come
into power in December next.

There is nothing in the draft Treaty to which the Government can reasonably
object; the only difficulty which may arise will be from their wish to include
undesirable additions. As there will be no necessity to press on the conclusion of
the Treaty after the ratification of the Preliminary Agreement, it would perhaps be
preferable, should the present Government insist on including Article XVII I of the
German Treaty, to await the arrival to power of General Diaz.

I have hopes, however, that everything may be arranged with the present
Government, and I will neglect no means to arrive at a favourable solution.

I have &cc
(Signed) ' SPENSER ST. JOHN.

No. 53.

Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, August 5, 1884, 2 p.m.

YOUR telegram received yesterday.

Sign Agreement without alteration at once if you can. If they refuse, we shall
have to fall back on suggestions discussed with Mexican Envoy here.

No. 54.

Earl Gfranville to Sir S. St. John.
(No. 33. Ext.)
Sir, Foreign Office, August 5, 1884.

I RECEIVED yesterday a telegraphic despatch from you informing me that
the President had rejected the protest made by Senor Mariscal, and had accepted
the proposed Agreement without alteration.

I have therefore to request you to sign the Agreement without alteration, and
to do so, if possible, without loss of time.

Should the Mexican Government, however, decline to sign, Her Majesty's
Government will in that case have to adopt the suggestions which have recently
been discussed with the Mexican Envoy in this country.

The substance of the foregoing was communicated to you this day by
telegraph.

I am, &c.
(Signed) GRANVILLE.

[309]

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No. 55.

Sir S. St. John to Earl Ghranville. — (Received August 7.)

(No. 7. Commercial.)

My Lord, Mexico, July 19, 1884.

I HAVE the honour to acknowledge the receipt of your Lordship's despatch
No. 3, Commercial, of the 24th June, 1884, on the subject of the heavy incidence of
some of the duties in the Mexican Customs Tariff on British goods, and instructing
me to bring this question before the Mexican Government whenever an opportunity
may offer.

I have had several conversations with M. Fernandez on the subject of the
Tariff, but he has always expressed the same opinion, that his Government would
be unwilling to bind themselves by any Treaty engagements on the subject.

As we found, however, that even Mexicans were but little acquainted with the
heavy incidence of their duties, which average over 100 per cent., Mr. Carden has
undertaken the task of placing the whole matter clearly before them, and has been
for the last two months working out the details of the Tariff. He is doing this
partly at the request of very influential Mexicans, who are dissatisfied at the low
commercial position held by their country. The results already laid before them
have apparently surprised them. It is, perhaps, not of much use to attempt to
influence the present Administration, whose term of office is closing, but I am
informed that General Diaz has shown much interest in the subject, and, being
clear-headed, may adopt measures to develop the trade of his country.

It is now well established among commercial men that the amount of goods
fraudulently introduced, either by direct smuggling or by false statements as to
their quality, causes a loss of considerably over 40 per cent, on the amount which
should be received.

As I consider a reform of the Tariff as the most important subject which can
engage the attention of the Mission, no opportunity shall be lost of pressing the
subject on the attention of those who can bring about a change.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 56.

Sir S. St. John to Earl Granville. — (Received August 7.)

(Telegraphic.) Mexico, August 6, 1884.

AGREEMENT signed to-day without any alteration.

No. 57.

Earl Granville to Sefior Mariscal.
(Private.)
Dear Senor Mariscal, Foreign Office, August 8, 1884.

A TELEGRAM from Sir Spenser St. John informs me that the Agreement has
been signed without alteration in the form communicated to me by him.

In acquainting you with this fact, of which, however, your Government has
no doubt already informed you, I cannot but express my sense of the obligation
that Her Majesty's Government are under to your Excellency for the spirit of
conciliation which you have shown in the course of these long and difficult negotia-
tions ; and I am sure that without your Excellency's cordial support they would
have led to no result.

I hope that the political and commercial relations of this country with Mexico
will now be placed on a permanent and satisfactory footing, which cannot fail to be
of advantage to the interests of both countries.

I have, &c.
(Signed) GRANVILLE.

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No. 58.

Earl Granville to Sir S. St. John.
(No. 4. Commercial.)
Sir, Foreign Office, August 11, 1884.

I HAVE received your despatch No. 7, Commercial, of the 19th ultimo, and, in
reply, I have to inform you that I approve the action you hare taken, as reported
therein, with a view to obtaining a revision of the Mexican Tariff, and a reduction
of the very high duties now charged on various articles of British manufacture.
You should point out that this measure is to be recommended quite as strongly in
the interests of the Mexican Exchequer and people, as on behalf of British trade.

1 am, &c.
(Signed) GRANVILLE.

No. 59.

Lord E. Fitzmaurice to Sir S. St. John.
(Private.)
Dear Sir Spenser St. John, House of Commons, August 12, 1884.

I WRITE to congratulate you most heartily on the successful termination of
your labours. The Foreign Office is much indebted to you for the skill and patience
you have shown, and it will be a satisfaction to you to know how fully this feeling
Is shared by Lord Granville himself. In regard to the last phase of the negotiations,
it may be as well you should know exactly what passed here.

When we got your telegram stating that M. Mariscal was objecting to your
proposal, Sir Julian Pauncefote and I saw M. Mariscal, and pointed out to him how
astonished we were at the Convention not having been already by that time signed ;
but we did not tell him what we knew. M. Mariscal thereupon informed us that
what he imagined had happened was that M. Fernandez, on being informed by him
of the construction he placed, and understood to be placed by us, on the 1st Article,
with especial reference to the words "agree" and "liquidation," had come to the
conclusion that he and you had understood that Article in a different sense ; that it
was in reality only the substitution of a new Convention for the old Conventions in
regard to the debt, and that difficulties would be sure to arise in the Senate, and
that he had consequently cried off.

Sir J. Pauncefote and I thereupon pointed out to M. Mariscal that we thought
this an exaggerated view of the Article ; that we had no wish to claim a right to
interfere iti the internal affairs of Mexico, which would be the probable consequence
of a new Convention similar to the old Conventions about the debt; and that if we
could find any way to get over the objections he made, the reality of which, however,
we did not admit, we would submit them to Lord Granville and communicate further
with you. Eventually Sir Julian suggested making Article I part of the preamble
with an amended wording, and M. Mariscal expressed himself favourably to this
idea. This proposal, which we embodied in words, was before Lord Granville
when your telegram arrived announcing the withdrawal of all objections and the
signature.

Mr. Gay, of the "Daily Telegraph," has, I believe, been badly injured in an
encounter with brigands in Mexico. If you have any opportunity of giving him a
helping hand I shall be much obliged, as I know him.

Once more congratulating you, I am, &c.

(Signed) EDMOND FITZMAURICE.

No. 60.

SeHor Mariscal to Earl Granville. — (Received August 13.)
(Private.)
Dear Lord Granville, August 9, 1884.

ALLOW me to thank you for your polite communication of yesterday, informing
me that Sir Spenser St. John had signed in Mexico the Preliminary Agreement
between the two nations.

In so doing your Lordship has the goodness to express an acknowledgment of

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the spirit of conciliation which I have shown in the course of the negotiations, and
is so kind as to state that without my cordial support " they would have led to no
result."

Without admitting that my humble efforts for the conclusion of an Agreement
may have had the importance which your Lordship's kindness attributes to them, I
can only say that, first, as the Minister for Foreign Relations in my country, and
subsequently as the Envoy of my Government in England, it has been my most
earnest desire to see the relations re-established between the two Governments as
soon as possible, and on a permanent satisfactory footing. I now share your Lord-
ship's hope that such will be the case through what has been already accomplished,
with the further steps which by common accord may be taken for the settlement of
our mutual international interests.

With renewed thanks for your Lordship's kindness, I remain, &c.

(Signed) IGN°. MARISCAL.

No. 61.

Earl Granville to Sir S. St. John.

(No. 34. Most Confidential.)

Sir, Foreign Office, August 14, 1884.

WITH reference to my despatch No. 31 of the 2nd instant, I transmit herewith,
for your information, a Memorandum of what passed at an interview between Senor
Mariscal and Lord E. Fitzmaurice, at which Sir J. Pauncefote was also present, on
the 1st instant, in regard to the negotiations for the resumption of diplomatic
relations with Mexico.*

I am, &c.
(Signed) GRANVILLE.

No. 62.

Earl Granville to Sir S. St. John.
(No. 38. Ext.)
Sir, Foreign Office, August 16, 1884.

I HAVE received your telegram of the 7th instant, reporting the signing of the
Preliminary Agreement between this country and Mexico; and I have to state to
you that it gives me great pleasure to convey to you the expression of the approval
of Her Majesty's Government of the able and successful manner in which you have
treated this question.

The substance of the foregoing was to-day communicated to you by telegraph.

I am, &c.
(Signed) GRANVILLE.

No. 63.

Earl Granville to Sir S. St John.
(No. 39. Confidential.)
Sir, Foreign Office, August 19, 1884.

I TRANSMIT to you herewith, for your information, a copy of a communica
tion, marked " Private," from the Special Envoy from Mexico in this country,
in regard to the re-establishment of diplomatic relations between England and
Mexico.f

I am, &c.
(Signed) GRANVILLE.

* No. 48. f No. 60.

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No. 64.

Earl Granville to Sir S. St. John.

§?o. 40. Confidential.)
ir, Foreign Office, August 19, 1884.

I TRANSMIT to you, for your own information, the accompanying copy of a
private letter which I addressed to the Mexican Special Envoy in this country, on
receipt of your telegram reporting the signature of the Preliminary Agreement for
the renewal of relations between this country and Mexico.*

1 am, &c.
(Signed) GRANVILLE.

No. 65.
Mr. Doyle to Earl Granville. — (Received in Department, August 20.)

Dear Lord Granville, 5, Half Moon Street, Piccadilly f August 16, 1884.

MY sight has become so faulty that 1 will not trouble you with my bad hand-
writing ; but I think it right, in consequence of your statement that a Commercial
Treaty was about to be made with Mexico, to bring the following fact to your
knowledge : —

In the first Commercial Treaty that was made it was stipulated that when a
forced loan was raised it should not be applied to British subjects, but there were
constant conflicts got up between the Mexican Government and our Legation,
because when a forced loan was ipade it was always endeavoured to be put in force
against British subjects, as the Mexican Government always tried to make it apply
to them on the ground that the translation of the words u especialmente a ellos "
meant only in the case of a forced loan being levied on British subjects, and not in
cases where a general forced loan was raised on everybody. This was always
resisted, but, if my memory serves me it was, I think, in February 1832 that Sir
Richard Pakenham succeeded in getting General Santa Anna, then President of
Mexico, to sign a document, having the force of a Treaty stipulation, declaring
that henceforward no forced loans should ever be raised on any pretence on British
subjects.

Soon after my arrival in that country another attempt was made to apply a
forced loan to British subjects upon the ground I have stated above, which I was
able to resist successfully by bringing to the notice of the Mexican Government the
arrangement made with Sir Richard Pakenham, and though several forced loans
were raised, a method of raising money at which the Government was very handy,
they were not applied to British subjects, excepting when they had joined them-
selves with Mexican citizens in carrying on commercial enterprises.

I have thought it worth while to bring this point to your notice, as I consider
it of great importance that every care should be taken in the wording and trans-
lation of any Treaty stipulations, as Mexican statesmen are generally lawyers, and
are especially fond of getting up a wrangle on the meaning of any and every word>
as was shown in the first Treaty.

Believe me, &c.
(Signed) PERCY W. DOYLE.

No. 66.
Sir S. St. John to Earl Granville. — (Received August 22.)

{No. 30. Very Confidential.)

My Lord, Mexico, August 4, 1884.

I CALLED on M. Fernandez on the 2nd instant, and mentioned to him the
telegram that I had received from your Lordship referring to your interview with
M. Mariscal, when he replied that his Excellency the President, after having
examined all the documents on both sides of the question, had decided to set aside
the objections raised by M. Mariscal, and had instructed him to sign the Agree-

• No. 57.
[309] I

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ment unaltered. He authorized me to telegraph this to your Lordship, and as I
am sure that he is anxious that the Mexican Envoy in London should not
interfere further in the matter, I did so yesterday in a Secret and Confidential
telegram.

ML Mariscal has had his influence deservedly weakened by his vacillating policy.
In an interview which Mr. Carden had with him in February 1883, M. Mariscal
assured him positively that as regarded the position England would occupy were
she to make a new Treaty with Mexico, €i that English goods would enjoy abso-
lutely, and without reference to any reciprocity, all the advantages that would be
given to American goods."

In M. MariscaPs recent communications with his Government he has been
urging them not to grant to England the most-favoured-nation clause without
considerable reservations. I was careful to draw M. Fernandez's attention to the
great contradiction between M. MariscaFs present views and those expressed by
him last year. M. Fernandez then told me, very confidentially, that M. Mariscal
was apparently trying to draw back with regard to the meaning of the favoured-
nation clause in the German Treaty, but that the Government had not adopted his
view.

The American Government would gladly obtain a monopoly of the trade of
Mexico, but the Mexican Government are strongly opposed to this project, and
fear that, should Mr. Blaine be elected President, he will endeavour to carry out a
very encroaching policy in commercial matters. Agreeing with this view, I urged
on M. Fernandez the necessity of inserting in the Preliminary Agreement the term
of six years certain for the favoured-nation clause, with one year's notice,
instead of the period of two years which he originally proposed, to which he
willingly assented.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 67.

Sir S. St. John to Earl Granville. — (Received August 26.)

<No. 31. Confidential.)

My Lord, Mexico, August 6, 1884.

I HAVE the honour to forward to your Lordship the Preliminary Agreement
for the renewal of relations between Great Britain and Mexico, which was signed
this afternoon.

The Agreement was drawn up by M. Fernandez after several consultations
between us, and although it varies from my original draft, the variations are favour-
able to English interests.

Article I provides for an impartial inquiry being made into the claims of British
subjects and for the payment of the sums found due, as well as for the settlement
of the claims already acknowledged by the Mexican Government.

A satisfactory settlement must greatly depend on the influence which Her
Majesty's Legation may acquire, as it has been abundantly proved in the past that
no Agreement, however carefully worded, can bind this Government where money
payments have to be made. I believe that the prospects of a considerable influence
being- acquired by England are highly favourable.

Article II was inserted by M. Fernandez, in order that it might not be said that
Article I had been imposed on the Mexican Government.

Article III is the important clause of the Agreement, as it secures to England,
for seven years certain, the treatment of the most favoured nation in all matters
whatsoever. The necessity of giving a year's notice before the treatment of the
most favoured nation can cease is a very Valuable additien to this Article, to which
M. Fernandez gives the widest interpretation.

Article IV is a concession to Mexican jealous fears, but is in reality of little
value, as no nation can desire to have more than the most-favoured-nation treatment
in all matters whatsoever.

When I compare this Agreement with the note addressed to me by M. Fernandez
on the 28th July, 1883, 1 cannot but be surprised at the change which a year's quiet
negotiations have produced in the views of the Mexican Government.

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There is one point which to me is less satisfactory. Before M. Mariscal's
unnecessary and passionate interference in the negotiations carried on by
M. Fernandez, we had come to a distinct agreement as to the meaning to be
attached to each clause, which I embodied in a despatch, a copy of which I have
the honour to inclose. But when M. Mariscal's protest arrived M. Fernandez
Pegged me to withdraw it, for fear it should give occasion for any one to say that
M. Mariscal's views were correct. I therefore substituted for it a short note in
terms which M. Fernandez thought would satisfy his Excellency the President that
M. Mariscal's alarms were unfounded. I thought that some concession was due to
M. Fernandez for his loyal support of the Agreement against the attacks of an
influential statesman, who, in fact, is still nominally Secretary of State for Foreign
Affairs, and who may yet return to occupy that post. The wording of Article I,
however, remains unchanged, and does not in any way limit the discretion of Her
Majesty's Minister as to the support he may think proper to give to the claims of
his countrymen. I successfully insisted on the omission of the words limiting this
right which M. Fernandez had inserted in his first draft.

Another point of a certain importance was gained by inducing M. Fernandez
to leave out the first lines of Article IV, which commenced, lt In virtue of the non-
subsistence of the ancient Treaties, Conventions, and international arrangements
between Mexico and Great Britain. " It was the more difficult to induce hin* to
abandon this phrase, as their national hero, President Juarez, had publicly proelaimed
this doctrine, and a vote of Congress had sanctioned it.

The Preliminary Agreement has to be ratified by Congress ; but as it has been
approved of both by the President, General Gonzalez, and by the President-elect,
General Diaz, it is not likely that many fresh difficulties will arise.

I would request your Lordship to forward to me the ratification of this Agree*
ment as soon as possible, as until the ratifications have been exchanged,
M. Fernandez is unwilling to take ih hand the negotiation of a permanent Treaty.

I have, &c.
(Signed) SPENSER ST, JOHN.

In closure 1 in No. 67.

Preliminary Agreement for the Renewal of Relations between Great Britain and Mexico,

signed at Mexico, August 6, 1884.

WH ERE AS the Governments of Great
Britain and Mexico are desirous to re-
establish diplomatic relations between the
two couhtries on the most cordial footing,
and in a manner consistent with the
honour and the interests of both nations,
and whereas the said Governments have
each of them appointed a Special Envoy
accredited to the other of them, with the
object of entering into negotiations for
that purpose, the following Preliminary
Arrangement is agreed to by and between
the High Contracting Parties : —

ARTICLE I.

The Mexican Government will order
an impartial investigation to be made
with respect to all the pecuniary claims
of British subjects based on acts of the
Federal Government of Mexico anterior
to the exchange of the ratifications of
these Preliminaries, and will provide for
the liquidation of the amounts which
may be found to be due them, as well
as for the payment of those already
recognized by the same Federal Govern-
ment.

POR cuanto k que los Gobiernos de
Mexico y la Gran Bretana desean resta-
blecer las relaciones diplomaticas entre
am bos paises sobre la base de la mayor
cordialidad y de una manera conciliable
con el honor y los intereses de las do?
naciones, y por cuanto a que cada uno
de dichos Gobiernos ha nombrado un
Enviado Especial accreditado cerca del
otro con objeto de entrar en negocia-
ciones para aquel propdsito, las Altaa
Partes Contratantes han convenido en el
siguiente Arreglo Preliminar: —

ARTICULO I.

El Gobierno Mexicano ordenara que se
hagauna imparcial investigacion respecto
de todas las reclamaciones pecuniarias de
subditos Britanicos basadas en actos del
Gobierno Federal de Mexico anteriores &
la fecha del cange de las ratificaciones de
estos Preliminares, y proveerd k la liqui-
dacion de las sumasqueresulte deb£rseles,
asi como al pago de aquellas ya recono-
cidas hoy por el mismo Gobierno Federal^

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ARTICLE II.

The British Government on its side
will also examine impartially all the
pecuniary claims of Mexican citizens
based on acts of the British Government
anterior to the date of the exchange of
the ratifications of these Preliminaries,
and will order the liquidation and pay-
ment of the sums which may be found
to be due them.

ARTICLE III.

The High Contracting Parties agree
to extend to each other reciprocally for
six years, reckoning from the date of the
exchange of the ratifications of these
Preliminaries, the treatment of the most
favoured nation in all matters what-
soever. This stipulation will be con-
sidered to be still in force at the expi-
ration of the six years, until twelve
months after it has been denounced by
either of the High Contracting Parties.

No stipulations contained in this
Article shall prevent the two Govern-
ments, if they so wish it, from drawing
up (as soon as the ratifications of these
Preliminaries has been exchanged) a
regular Treaty of Peace, Friendship,
Commerce, and Navigation, on the same
basis of the most-favoured-nation treat-
ment.

ARTICLE IV.

The stipulations contained in the first
paragraph of Article III of these Prelimi-
naries, and, in the event of its being con-
cluded, the Treaty of Peace, Friendship,
Commerce, and Navigation referred to
in the second paragraph of the same
Article, will, in future, exclusively govern
the Conventional relations between the
two Governments as the only interna-
tional compact existing between them,
so long as they do not conclude new
Treaties, Conventions, or Agreements.

ARTICLE V.

These Preliminaries shall be ratified
respectively according to the constitution
of each country, and the ratifications shall
be exchanged in Mexico within ten
months from the date hereof.

In witness whereof both Plenipoten-
tiaries have signed the present Prelimi-
naries, and have affixed thereto their
respective seals, in the city of Mexico, on
the sixth day of August, in the year one
thousand eight hundred and eighty-four.

SPENSER ST. JOHN.
JOSE FERNANDEZ.

ARTICULO II.

(L.S.) (Signed)
(L.S.) (Signed)

El Gobierno Brit&nico, por su parte,
examinara, tambiexi imparcialmente,
todas las reclamaciones pecuniarias de
ciudadanos Mexicanos basadas en actos
del Gobierno Britdnico anteriores a la
fecha del cange de las ratificaciones de
estos Preliminares, y ordenard la liqui-
dacion y pago de las cantidades que
resultare deberles.

ARTICULO III.

Las Altas Partes Contratantes con-
vienen en concederse reciprocamente
durante seis aiios, contados desde la
fecha del cange de las ratificaciones de
estos Preliminares, el tratamiento de la
nacion mas favorecida en toda clase de
mater ias. Esta estipulacion se con-
sidererd en vigor, pasados los seis aiios,
hasta doce meses despues de que haya
sido denonciada por cualquiera de las
Altas Partes Contratantes.

Las estipulaciones contenidas en este
Articulo no obstan & que ambos Go-
bier nos ajusten, si asi lo desean, y una vez
hecho el cange de las ratificaciones de
estos Preliminares, un Tratado en forma,
de Paz, Amistad, Comercio, y Navegacion,
sobre la misma base del tratamiento de
la nacion mas favorecida.

ARTICULO IV.

Las estipulaciones contenidas en el
primer miembro del Articulo III de estos
Preliminares, y, en su caso, el Tratado de
Paz, Amistad, Comercio, y Navegacion a
que el segundo miembro se refiere, regirdn
exclusivamente en lo futuro las relaciones
Convencionales entre los dos Gobiernos,
como el linico pacto internacional exis-
tente entre ellos, mi£ntras no celebren
nuevos Tratados, Convenciones, 6 Arre-
glos.

ARTICULO V.

Estos Preliminares ser£n ratificados
respectivamente conforme £ la consti-
tucion de cada pais, y las ratificaciones
se cangearan en Mexico dentro de los
diez meses contados desde esta fecha.

En f£ de lo cual ambos Plenipoten-
ciarios han firmado los presentes Prelimi-
nares, selldndolos cada uno con sn re-
spectivo selio, eo la ciudad de Mexico, a
los seis dias del mes de Agosto, del ano
de mil ochocientos ochenta y cuatro.

(L.S.) (Firmado) JOSfi FERNANDEZ.
(L.S.) (Firmado) SPENSER ST. JOHN.

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Protocol.

On signing this day the Preliminaries Al firmarse hoy los Preliminares de
of the renewal of the relations between reanudacion de relaciones entre la Graa
Great Britain and Mexico, the Plenipo- Bretana y Mexico, notaron los Plenipo-
tentiaries remarked that in the English tenciarios que en el texto Ingles del
text of Article III, after the words, "from Articulo III, despues de las palabras
the date of the exchange," the following " from the date of the exchange/* faltan
words are omitted, "of the ratifications/' estasotras," of the ratifications." Hicieron
Hereby they declare that the sentence constar que la frase debe leerse asi:
should read as follows: "from the date "from the date of the exchange of the
of the exchange of the ratifications of ratifications of these Preliminaries," &c.,
these Preliminaries/* &c, and they pro- y ofrecieron subsanar esta omision en los
pose to rectify that omission in the ejemplares de dichos Preliminares que
copies of the said Preliminaries which contengan las ratificaciones de los dos
shall contain the ratifications of the two Gobiernos.
Governments.

In witness whereof they signed this En fi£ de lo cual firmaron esta acta por

document in duplicate, and affixed thereto duplicado y la sellaron con sus sellos, en

their seals, in the city of Mexico, on the la ciudad de Mexico, & los seis dias del

sixth day of August, in the year one mes de Agosto de mil ochocientos ochenta

thousand eight hundred and eighty-four, y cuatro.

(L.S.) (Signed) SPENSER ST. JOHN. (L.S.) (Firmado) JOSE FERNANDEZ.

(L.S.) (Signed) JOSfi FERNANDEZ. (L.S.) (Firmado) SPENSER ST. JOHN.

Inclosure 2 in No. 67.
Draft of Sir S. St. John's proposed Note to Sefior Fernandez.

M. le Ministre, Mexico, July , 1884.

I HAVE the honour to inform your Excellency that Her Majesty's Government,
being desirous of avoiding any misunderstanding as to the tenour of the Articles of
the Preliminary Agreement which we have this day signed, have authorized me to
address you this confidential note to explain the meaning which Her Majesty's
Government attach to the principal clauses.

It is understood that Article 1 does not refer to the London debt, commonly
called the Bondholders' Debt, which the Mexican Government are desirous of settling
by direct negotiations with the bondholders, but to the claims which certain British
subjects consider they have against the Federal Government of Mexico for debts due
to them by the said Federal Government, or for indemnities for injuries to property
or person from which they have suffered from the agents or citizens thereof previous
to the signing of the present Agreement.

The sums already recognized by the Federal Government of Mexico are under-
stood to refer to the balance of the Convention Debt, and certain other claims which
have already been examined and accepted by the said Federal Government. No
claims of British subjects shall be presented to the Commission to be hereafter
appointed by the Mexican Government until they have been examined by Her
Alajesty's Legation.

Articles II and III require no special explanation.

Article IV. Her Majesty's Government, being satisfied that the Government of
Mexico will cause an impartial and satisfactory investigation to be made into the
claims of British subjects, as provided in Article I, will not in the future invoke, in
support of claims of British subjects, any Treaty, Convention, pact, or agreement
between the two countries for the time anterior to the date of the exchange of the
ratifications of the said Preliminaries.

This confidential note shall be considered as supplementary and of equal value
to the Preliminary Agreement signed this day, which will entirely govern the
relations between the two countries, until the signature of a regular Treaty between
the Republic of Mexico and the Kingdom of Great Britain, the signature of which
Treaty, however, will not in any way affect the stipulations contained in Articles I
<and II.

[309] K

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Inclosure 3 in No. 67.

r ,

i Sir S. St. John to Sefior Fernandez.

j M. le Ministre, Mexico, August 6, 1884.

j, I HAVE the honour to inform your Excellency that I have received instructions

I from my Government to communicate to you by this note, which is supplementary

t to the Preliminaries which your Excellency and I have this day signed, that Her

I Majesty's Government, desirous to prevent any difficulties arising in the diplomatic

j relations which both Governments are so anxious to re-establish, will not invoke in

the future any Convention, pact, or arrangement between the two countries for all
I the time anterior to the exchange of the ratifications of the said Preliminaries. As

I regards the time subsequent to that date, provision is made in the declaration

contained in Article IV of the same Preliminaries.

The renewal of relations then between the two countries, should it be carried

into effect, shall be considered as made in the sense of the declarations contained in
! the Preliminaries signed to-day, and in this supplementary and confidential note.

I have &c.
(Signed) ' SPENSER ST. JOHN.

i .

No. 68.

Sir S. St. John to Mr. Jervoise. — (Received August 26.)

My dear Jervoise, Mexico, August 7, 1884.

THERE is an explanation required of some words in Article I. "Acts of the
Federal Government " were put in to exclude "Acts of the Imperial Government. r
Every one here is surprised at the settlement, as no one had any idea that negotiations
were going on. The secret was well kept.

Ever sincerely yours,
(Signed) SPENSER ST, JOHN.

P.S. — Agreement was posted yesterday afternoon. I mention this in case of any
delay in delivery.

S. ST. J.

No. 69.

Sir S. St. John to Earl Granville. — (Received August 26.)

(No. 29. Confidential.)

My Lord, Mexico, July 30, 1884.

I REGRET to inform your Lordship that up to the present date the preliminary
Agreement settled between M. Fernandez and myself has not been signed on account of
certain objections raised by M. Mariscal.

On the 5th July, in an interview I had with M. Fernandez, we settled the form in
which the Agreement should be drawn up. On the 7th he called on me, saying that he
had shown the document to his Excellency the President, and that he approved of it, and
that he was ready to sign it immediately. Fortunately, he had written to me to the same
effect, and left the letter with me. On the 8th I telegraphed to your Lordship, saying that
the favoured-nation clause had been extended to 6even years, and asking permission to
sign. Receiving no answer I again telegraphed to your Lordship : on the arrival of the
final reply on the 1 9th I wrote to M. Fernandez that I wished to see him, and next day
I informed him that I was prepared to sign.

To my surprise M. Fernandez began to make objections, saying that he had just
received from M. Mariscal a very strong protest against the conclusion of the Agreement,
offering his resignation rather than have anything to do with it, declaring that it was
renewing all the old Conventions, that under it Her Majesty's Government might insist
not only on the payment of all moneys due, but even interfere in the arrangement of the
bondholders' debt, and ended by appealing to the patriotism of the President to reject the
preliminaries in their present form.

M. Fernandez was very much moved by this contretemps, and told me he was

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preparing an answer in which he hoped to refute M. Mariscal's arguments, and that he
would lay these documents before the President* I have seen M. Fernandez several
times since, but as yet his Excellency has not given his decision. I have asked, privately,
for an interview with the President, not to leave any means untried to conclude this
business in a satisfactory manner.

With any other Government, it would be impossible to recede after M. Fernandez's
communication, but I fear this one is not troubled by many scruples. As I hear that
negotiations are going on in London to raise a loan, and as advantage may be taken of a
supposed renewel of relatious, I intend telegraphing to your Lordship to-day that the
Agreement has not yet been signed.

I will forward all the documents as soon as anything is settled.

I have, &c.
(Signed) SPENSER ST. JOHN.

Inclosure in No. 69.
SeAor Fernandez to Sir S. St. John.

(Translation.)

Much esteemed Sir Spenser, Foreign Office, Mexico, July 7, 1884.

AS I offered you in our conference of last Saturday, I have now the honour to remit
you my project of the Preliminaries for the renewal of relations, modified according to the
sense of our conversation, and approval by the President in to-day's Conference.

I send you also a project of a secret note, which you will be good enough to address
me, drawn up in terms which will satisfy my Government, and which, I trust, you may
find acceptable.

If both documents meet your approbation, I hope that in the present week we shall
be able to sign the Preliminaries.

I am, &c.
(Signed) JOSfi FERNANDEZ.

So. 70.

Mr. Doyle to Lord E. Fitzmaurice. — (Received August 29.)

My dear Fitzmaurice, 5, Half Moon Street, Piccadilly, August 19, 1884.

LORD GRANVILLE writes me word he forwarded you a letter of mine, as you are
drawing up the Commercial Treaty with Mexico. If I can be of any service to you,
having been so long in that country, I am quite at your service, but do not ask me to go
to you in the heat of the sun, as I am not very well. There is one point I should like to
draw to your attention which may be difficult to manage. When British or other foreign
subjects have claims against the Mexican Government, they are generally settled, after
many difficulties, not by ready money, but by Conventions or Agreements granting a
certain small percentage on Custom-house or other dues accruing to the Government.
Now comes the difficulty : when a pronunciamiento or revolution takes place, and so
numerous were they, that I think I must have gone through some fourteen, the first act
of the coming-in Government is to suspend every payment, however solemn in its nature,
on the plea that they must examine the state of the finances, which they delay as long as
possible ; this delay lasting sometimes for months, causing much disagreeable corre-
spondence to take place between the different Legations and the Mexican Government.
My object in bringing this matter before you, is for you to consider whether any provision
could be made in the Treaty to the effect that no such Conventions or solemn Agreements
should be interfered with, in consequence of any change of Government, under any
pretext

Believe me^ &c.
(Signed) PERCY W. DOYLE.

P.S.— My sight is so bad that I spare you my handwriting.

P. W. D.

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No. 71.

Earl Qraimlle to Sir 8. St. John.
(No. 41.)
Sir, Foreign Office, August 30, 1884

I TRANSMIT to you, for your information, the accompanying copy of a letter from
Mr. Percy Doyle, formerly Her Majesty's Minister in Mexico, in regard to the desirability
of securing by Treaty stipulations protection for British subjects against forced loans.*

I am, &c.
(Signed) GRANVILLE.

No. 72.
Mr. Bouverie to Mr. Jervoise. — {Received September 1 .)

Dear Jervoise, Manor House, Market Laving ton, Wilts, August 31, 1884.

IS Mexico in your department ?

Whether or no, do you think you can get your Chiefs assent to a request I should
like to make as to the arrangement now hatching for a settlement of the debt ?

I have made it a condition that Diaz, the incoming President, should approve of the
proposals which have been laid before me, and I have been assured by the Government
Agent that he does. I have also an official letter from Mariscal, the Mexican Minister
here, sending a telegram from Diaz to himself in confirmation of this, which he asked from
Diaz at my instance.

Still, these are mere statements by others, and what I should like to ask the Foreign
Office to-day would be to telegraph (at my office's expense) to St. John to ask him to
see Diaz, and to ask him confidentially to say if he approves of the proposed settlement.
What do you say to this ? I had thought of asking St. John myself, but your doing it
would of course insure its being done, and the certainty thus acquired would be very
important for the stability of the scheme.

I am, &c.
(Signed) E. P. BOUVERIE.

No. 73.

Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, September 3, 1884, 3*45 p.m.

AT the request of Bondholders' Committee, I have to instruct you to ask Diaz
confidentially if he approves arrangement for settlement of debt laid before Committee
by Government Agent.

No. 74.
Sir S. St. John to Earl Granville. — (Received September 5.)

(Secret and Confidential.)

(Telegraphic.) Mexico, September 4, 1884.

VERY important that the answer to your Lordship's telegram of yesterday should be
by post, as detailed and confidential explanations are necessary.

No. 75.

Sir S. St. John to Earl Granville.— (Received September 8.)

(Telegraphic.) Mexico, September 8, 1884.

HAS Agreement arrived ?

• No. 65.

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No. 76.

Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, September 8, 1884, 3 P.M.

YES. Ratification being prepared.

No. 77.

Mr. Bouverie to Mr. Cockerell. — (Received September 12.)

Council of Foreign Bondholders, 17, Moor gate Street,
Dear Sir, London, September 11, 1884.

I HAVE been in communication with Mr. Clarke Jervoise respecting the proposed
arrangement of the Mexican Debt, and the telegram the Foreign 4 Office has sent to
Sir Spenser St. John at my request, begging him to ascertain if General Diaz consents
to it.

Mr. Jervoise has written to tell me that Sir Spenser has telegraphed to say that it
was necessary to give detailed and confidential explanations, and Mr. Jervoise says these
may be expected by post in about three weeks.

Unfortunately it turns out the matter does not admit of delay, as the arrangement,
if agreed to here, has to go to Congress for their sanction, and Congress meets this
month.

The general outline of that arrangement has been telegraphed to-day by the Chairman
of the Committee to President Gonzales. What I, therefore, have to beg in this difficulty
is that Sir Spenser may be again telegraphed to, to say that the terms of the arrangement
hare been cabled to President Gonzales, and that he, Sir Spenser, is requested to see them,
and ascertain with respect to them from Diaz that he confirms his previous telegram to
Senor Mariscal, and that he approves of the terms.

I am, &c.
(Signed) E. P. BOUVERIE.

No. 78.
Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, September 13, 1884, 5 # 25 p.m.

YOUR telegram of the 4th instant.

At the request of the Bondholders' Committee, I have to instruct you to look at the
terms of the arrangement for the settlement of the debt, which the Committee telegraphed
to President Gonzales in outline on the 11th instant, and to ascertain with respect to them
from Diaz that he confirms his previous telegram to Sefior Mariscal, and that he approves
of the terms.

No. 79.

Sir S. St. John to Earl Granville.— (Received September 13, 9 P.M.)

(Telegraphic.) Mexico, September 13, 1884.

PRESS telegram quoted here says settlement of debt accepted by Bondholders*
Committee and referred to Lord Granville for his decision. If this statement remains
uncontradicted, a failure of the debt negotiations might imperil ratification of Preliminary
Agreement. May I deny report officially ?

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No. 80.

Mr. Lister to Mr. Bouverie.

Sir, Foreign Office, September 13, 1884.

I AM directed by Earl Granville to acknowledge the receipt of your letter of the
1 1th instant, upon the subject of the proposed arrangement of the Mexican Debt ; and I am
to state to you, for the information of the Council of Foreign Bondholders, that, in accordance
with the request contained therein, his Lordship has instructed Her Majesty's Special Envoy
in Mexico to look at the terms of the arrangement for the settlement of the debt which
have been telegraphed by the Council to President Gonzales, and to ascertain with respect
to them whether President Diaz approves of them, and confirms his previous telegram to
the Special Mexican Envoy in this country.

I am, &c.
(Signed) T. V. LISTER.

No. 81.

Sir S. St. John to Earl Granville.— -(Received September 15, 9 P.M.)

(Telegraphic.) Mexico, September 15, 1884.

HAVE seen Minister for Foreign Affairs, who said Mexican Government desire to
settle arrangement with the bondholders without even the appearance of diplomatic
interference, any suspicion of which would cause Senate to refuse ratification of Preliminary
Agreement. He awaits reply to my telegram of 13th before submitting Agreement to
Senate.

No. 82.

Earl Granville to Sir S. St John.

(Telegraphic.) Foreign Office, September 16, 1884, 5*55 p.m.

YOUR telegrams of 13th and 15th : Mexican Debt.
You may deny officially.

No. 83.

Earl Granville to Sir S. St. John.

(Telegraphic.) Foreign Office, September 20, 1884, T50 P.M.

RATIFICATION leaves to-night.

No. 84.

Sir S. St. John to Earl Granville.— (Received September 26.)

(No. 34. Secret and Confidential.)

My Lord, Mexico, September 3, 1884.

I RECEIVED your Lordship's telegram to-day instructing me to ask General Diaz,
confidentially, whether he approved of the plan submitted to the Bondholders 9 Committee
by the Agent of the Government of Mexico.

I am perfectly aware that the General does not approve of any arrangement being
made with the bondholders by the present Administration, as he is convinced it is done
solely with a view of raising a fresh loan, which his Government would be called upon to
repay.

At the same time, if it were suspected by the Government of Mexico that he was
doing anything to thwart their negotiations for a loan, it is certain that they would do all
in their power to injure him.

It is not the settlement with the bondholders which is so much objected to as the use

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that will be made of that settlement. The finances are already in a ruinous state, and if
the present Government from the effect of the settlement should be able to raise the
proposed loan of 30,000,000 dollars, it would put it out of the power of the next
Administration to restore the finances to a healthy condition, and prevent it from carrying
out the arrangement made with the bondholders, and defer indefinitely the proposed reform
of the Tariff and the settlement of other claims.

Of one thing I feel assured, that the present Government would not have cared to
make any settlement with the bondholders did they not look upon it as a necessary step
to secure the proposed loan.

Congress meets on the 16th September, and one of their first acts will be to examine
the votes of the States, and as soon as they have declared General Diaz duly elected, he
will be more free to express his opinion.

I have written this despatch in cypher, as it is of the greatest importance to General
Diaz's safety that this information should be used with caution.

I have, &c.
(Signed) SPENSER ST. JOHN.

No. 85.

Sir S. St. John to Earl Granville. — (Received September 30.)
(No. 35.)
My Lord, Mexico, September 12, 1884.

ON the 8th instant I forwarded to your Lordship a telegram to inquire whether the
Preliminary Agreement which wa3 posted here on the 6th August had been received. On
the following day your Lordship's reply arrived stating that it had been received, and that
the ratifications were being prepared. I telegraphed this inquiry, as M. Jos£ Fernandez,
was anxious to hear some news of the ratification in order to be prepared to submit the
Agreement to the Senate as soon as possible.

I have, &c.
(Signed) SPENSER ST. JOHN-

No. 86.
Mr. Currie to Mr. 0*Leary.

Sir, Foreign Office, October 1, 1884.

I AM directed by Earl Granville, to acknowledge the receipt of your letter of the
22nd ultimo,* inclosing, for his Lordship's information, printed copies of a Memorandum of
Agreement between the Committee of Mexican Bondholders and M. Edouardo Noetzlin,
the specially-authorized Mexican Agent for the settlement of the external debt of that
Republic.

I am, &c.
(Signed) P. CURRIE.

No. 87.

Sir S. St. John to Earl Granville. — (Received October 6.)
(No. 36.)
My Lord, Mexico, September 15, 1884.

A PARAGRAPH which appeared in a Government paper here, a translation of
which I inclose, alarmed those who had been assured that the settlement of the bond-
holders' debt would be directly negotiated by the Mexican Agents and the Committee
without the interference of Her Majesty's Government. I therefore telegraphed to your
Lordship, asking for permission to deny officially the statement made in the €C Nacional."

A few hours subsequently to sending my telegram, I received that of your Lordship
instructing me to look at the terms of the arrangement of the debt, which had been
telegraphed in outline to his Excellency the President, and to ascertain from General
Diaz whether he confirmed his previous telegram to Sefior Mariscal, and whether he
approved of the terms.

I therefore called on Sefior Fernandez this morning and told him that I wished to see

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"the arrangement which had been telegraphed to the President on the 11th instant. He
"was evidently surprised at the application, and said that the Mexican Government desired to
settle the arrangement with the bondholders without even the appearance of any diplomatic
interference. He added that the rumours on the subject had already alarmed many of the
Senators, who had been to him to know whether the preliminary arrangement sanctioned
any diplomatic intervention in that question on the part of Her Majesty's Government.
He added that he trusted that nothing would occur to mar the result of all our previous
negotiations, but he feared that unless I could officially deny the statements made the
Senate would refuse to ratify the Preliminary Agreement.

It appears that the declaration made by M. Mariscal, that the 1st Article of the
Preliminary Agreement would authorize Her Majesty's Government officially to insist on
a settlement of the bondholders' debt, has had its effect on many persons of influence, and
has created an opposition to the ratification of the Agreement.

I assured M. Fernandez that Her Majesty's Government did not wish to interfere in
the settlement of the debt, and desired that the Mexican Government and the bondholders
should, by direct negotiations, arrange the matter between them ; that those telegraphic
inquiries were only made out of a friendly feeling towards the bondholders, and that I
adhered to my previous declaration, that Article I of the Preliminary Agreement did not
in any way refer to the debt due to the bondholders.

M. Fernandez concluded by saying that he would not present the Preliminary
Agreement to the Senate until I could give him, in writing, your Lordship's answer to my
telegram of the 13th instant.

I have, &c.
(Signed) SPENSER ST. JOHN.

Inclosure in No. 87.
Extract from the " National.'

(Translation.)

ACCEPTED in principle by the bondholders in London the bases of the settlement
proposed by M. Eduardo Noetzlin in the name of the Mexican Government, said bond-
holders have referred it to Earl Granville, Head of the British Cabinet, for his definitive
resolution.

It has come to our knowledge that with this object messages have passed by the cable
between the Foreign Office and Sir Spenser St. John.

No. 88. '
Messrs. Valpy, Chaplin, and Peckham to Earl Granville. — (Received October 9.)

My Lord, 19, Lincoln 9 s Inn Fields, London, October 8, 1884.

REFERRING to the letter received by us from the Foreign Office dated the

6th March last, as we understand that diplomatic relations have now been renewed between

this country and Mexico, we venture again to refer your Lordship to our letter of the

11th June, 1883, and to inquire what steps are likely to be taken with a view to the

settlement of our client's claim.

^we have Sec
(Signed) ' VALPY, CHAPLIN, and PECKHAM.

No. 89.

Sir S. St. John to Earl Granville. — (Received October 13.)
(No. 37.)
My Lord, Mexico, September 24, 1884.

ON the receipt of your Lordship's telegram of the 16th instant authorizing me to
contradict the statement made in the " Nacional " newspaper, I addressed the inclosed
despatch to M. Fernandez, to which he replied in a note that contains statements which
might be contested. But as nothing that he could write about the Preliminary Agree-
ment, after its signature and its ratification by Her Majesty's Government, can have any
importance unless accepted by your Lordship, I thought it better to make no remark, and

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not provoke a discussion on points which may never be raised. M. Fernandez's despatch
was evidently written to influence votes in the Senate.

I have, &c.
(Signed) SPENSER ST. JOHN.

Inclosure 1 in No. 89.
Sir S. St. John to Setter Fernandez.

M. le Ministre, Mexico, September 17, 1884.

MY attention having been called to a statement in the " National " to the effect that
" accepted in principle by the bondholders in London the bases of the settlement proposed
fcy M, Edouardo Noetzlin in the name of the Mexican Government, said bondholders have
referred it to Earl Granville, Head of the British Cabinet, for his definitive resolution," I
telegraphed to his Lordship for permission officially to deny this statement.

I have now received his Lordship's reply, authorizing me to deny officially the
statement published in the " Nadcr^d." Her Majesty's Government, in accepting
Article 1 of the Preliminary Agreement, clearly understand that it in no way refers to the
English debt, which the Government of Mexico have decided to settle by direct negotia-
tions between the bondholders and themselves.

Accept, &c.
(Signed) SPENSER ST. JOHN.

Inclosure 2 in No. 89.
Sefior Fernandez to Sir S. St. John.

(Translation.)

M. PEnvoyS Special, Foreign Office , Mexico, September 19, 1884.

I HAVE had the honour to receive your Excellency's note of the 16th instant in due
course.

In it your Excellency is pleased to notify me of your having received instructions from
your Government to deny officially the statement published in the "National" to the
effect that the bases of an arrangement pending between the bondholders of the debt
known as the London debt on one side, and M. Noetzlin, in the name of the Mexican
Government, on the other, have been submitted for the definitive resolution of Lord
Granville, Head of the British Cabinet.

Your Excellency also informs me that Her Majesty's Government clearly understand
that Article 1 of the Preliminaries which your Excellency and I have signed on the
6th August last does not in any way refer to the London debt, which the Mexican
Government has decided to arrange by direct negotiation with the bondholders.

In the enumeration, in Article IV of the Preliminaries, of the stipulations which shall
have in future the character or force of a pact or Convention between both Governments*
those only are specified, as your Excellency is aware, which are contained in the first
paragraph of Article III and the Treaty of Commerce, if it is made, to the exclusion
of Articles I and II, so that they may never be considered as a Convention, nor the credits
to which they refer as a conventional or international debt.

Your Excellency's note reaches me, in reference to this point, very opportunely, since
the result of the Preliminary Agreement might perhaps be jeopardized in the Senate,
and later on in public opinion, if the statement that an international character had been
ascribed to the London debt (such as the Preliminary Agreement does not recognize in
any other credit of British subjects) were not satisfactorily denied.

For the rest, the Mexican Government reserves to itself the right to include or not
the London debt in the investigation of which the 1st Article of the Preliminaries makes
mention, according to the march of events.

In offering your Excellency my most sincere thanks for your courteous and opportune
communication, I beg, &c.

(Signed) JOSE FERNANDEZ.

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No. 90.

Earl Granville to Sir S. St. John.
(Ha 50.)
Sir, Foreign Office, October 15, 1884.

I HAVE received your despatch No. 37 of the 24th ultimo, inclosing copies of a
correspondence with the Mexican Minister for Foreign Affairs upon the subject of the
arrangement for the settlement of the Mexican debt, and I have to convey to you my
approval of your action, as reported therein.

I am, &c.
(Signed) GRANVILLE.

So. 91.

Earl Granville to Sir S. St. John.
(No. 51.)
Sir, Foreign Office, October 15, 1884.

I HAVE received your despatch No. 86 of the 1 5th ultimo, recording your conversa-
tion with the Mexican Minister for Foreign Affairs upon the [subject of the Mexican debt,
and I have to convey to you my approval of the language which you held to Sefior
Fernandez, as reported in your despatch.

I am, &c.
(Signed) GRANVILLE.

No. 92.
Mr. Ourrie to Messrs. Valpy, Chaplin, and Peckham.

Gentlemen, Foreign Office, October 15, 1884.

I AM directed by Earl Granville to acknowledge the receipt of your letter of the
8th instant in regard to the Manning and Mackintosh claims, and I am to transmit to yon,
in connection with this subject, the accompanying copy of papers respecting the renewal
of diplomatic relations with Mexico which have been recently laid before Parliament.*

If you refer to the Agreement concluded between the two countries — which you will
find at p. 9 of the print — you will learn the mode in which it is proposed to deal with the
claims.

I am, &c.
(Signed) P. CURRIE.

~ —

No. 93.

Mr. Gibson to Earl Granville — (Received October 21.)

My Lord, 37, Bolsover Street, Portland Place, London, October 20, 1884.

I MOST humbly beg to call your Lordship's kind attention relative to the affairs of
my late deceased brother, Dr. E. 0. Gibson, who was murdered near Acapulco, Mexico,
some years ago.

In a communication by your Lordship's direction, dated Foreign Office, 6th
November, of last year, your Lordship was kind enough to promise that when the proper
time arrived the claim upon the Mexican Government should meet with attention.

I now feel it my duty, and most humbly pray that your Lordship will see fit to use
your powerful interest in my behalf, so that I may receive my just and lawful rights.

I believe my case was brought before your Lordship's notice some years ago by
Mr. B. Stanhope, also Mr. R. Winn.

I am too poor to employ a solicitor, therefore 1 most earnestly pray for your Lord-
ship's kind consideration and forgiveness in causing you so much trouble, and shall for
ever feel truly grateful and thankful for your Lordship's kindness ; and with every due
respect I beg, &c.

(Signed) FREDERICK GIBSON.

* " Mexico No. 1 (1S84)."

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No. 94.

Mr. Lister to Mr. CUbson.

Sir, Foreign Office, October 25, 1884.

I AM directed by Earl Granville to acknowledge the receipt of your letter of the 20th
instant in regard to your claim on the Mexican Government, and I am to transmit to you,
in connection with this subject, the accompanying copy of papers respecting the renewal
of diplomatic relations between the two countries, which have been recently laid before
Parliament.*

If you refer to the Agreement between Great Britain and Mexico, which you will
find at p. 9 of the print, you will learn the mode in which it is proposed to deal with the
claims.

I am, &c.
(Signed) T. V. LISTER.

No. 95.

Mr. A. P. Vivian, M.P., to Lord E. Fitzmaurice. — {Received November 12.)

Dear Rtzmaurice, November 10, 1884.

WILL you please let me have some information to enable me to reply to the inclosed
letter from a constituent ?

Very truly, &c.
(Signed) A. PENDARVES VIVIAN.

Inclosure in No. 95.
Mr. Rabling to Mr. A. P. Vivian.

Dear Sir, Pare Bracket House, Camborne, November 7, 1884.

HAVING seen in to-day's newspaper the question asked in the House of Commons
last night by Mr. Salt as to the renewal of relations with Mexico and the consideration of
the British claim, I take the liberty to ask if you can give me any information in this
matter, or where I should apply for information, as I have a claim against the Mexican
Government, dating from the year 1863, and is admitted by the British Consul at Mexico.
I was captured by a force of the troops of Juarez who were fighting against the French and
was detained for nearly three weeks, and then had to pay a heavy ransom for my release.
A full account of my capture appears in the " Return " issued by the Foreign Office on the
5th July, 1881, " fc Miscellaneous No. 9 (1881),'* a copy of which I obtained about twelve
months ago.

My object in writing is to ascertain if my claim is included in the demand now made
by the British Government.

I am, &c.
(Signed) WM. RABLING.

No. 96.
Memorandum by Mr. Brant respecting Mr. Rabling' s Claim on the Mexican Government.

MR. W. RABLING was captured, whilst travelling to the capital (Mexico) on Mr. Rabling to
private business in a stage coach, by the t€ Guerillero, ,, Fragoso ; and a ransom of 6,000 Consul Glennie,
dollars was demanded, after the payment of 3,400 dollars of which he succeeded in making November 24, 1863.
his escape by the aid of Don Simon Crairoto, the Commander of the Liberal Forces, under a™ hive*! **
whose protection he had placed himself on his arrival at Huanchinango. Ibid., January 6,

In addition to the money paid for his ransom Mr. Rabling claimed various other sums, 1864. See Mexican
on account of loss of time and expenses incurred whilst making his escape, which brought Arcbives.
the total of his claim to 4,710 dollars.

* "Mexico No. 1 (188 J)."

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Inclosun in Mr. Juarez, who styled himself ct Citizen President," wrote to Colonel Fragoso on

Rabling's letter of the 26th November, 1863, a letter (subsequently published in the "Globe" of the
March 2, 1870 lgt N ovem ber, 1867), ordering him to release Mr, Kabling without ransom, or, if the
ransom had been paid and the prisoner released, to return the money. In this letter the
men under Colonel Fragoso are described as belonging to the " constitutional forces.*
This letter does not appear, however, to have had the desired result.
Ibid. On the 2nd June, 1865, Mr. Scarlett, in reply to a letter from Mr. Rabling, stated

that he was preparing measures for the prompt settlement of all British claims, and would
take care that his (Mr. Rabling's) case should receive due attention.
Ibid. And on the 29th October, 1866, he was informed by Consul Glennie that all papers

relating to his claim against the Mexican Government were to be sent to the British
Consulate at Mexico, to be there kept at the disposal of the Commission which had been
formed to examine British claims.

It would seem from the above that Mr. Rabling's claim was recognized as a legitimate
one by the British Minister in Mexico and the British Consul at that capital, especially as
his name is included in the list of claimants, regarding whom documents were sent home
with the Mexican Archives.

(Signed) R. W. BRANT.

Foreign Office, November 19, 1884.

No. 97.

Sir S. St. John to Earl Granville. — (Received November 20.)

(No. 41. Confidential.)

My Lord, Mexico, October 29, 1884.

I HAVE the honour to forward to your Lordship the ratification of his Excellency
the President of the Preliminary Agreement for the renewal of relations, together with a
certificate of the exchange. As these documents are in a very unusual form, I must
explain the reasons for their being so.

Early last month telegrams were received from London, and published in the papers
here, that the negotiations for the settlement of the English debt were in fact being carried
on under the auspices of the English Government. This announcement aroused great
jealousy, which found expression when the Congress met, and M. Jos£ Fernandez informed
me that it was doubtful whether our Agreement would pass.

I believe that the opposition was both fictitious and factious. It had been partly set
on foot by M. MariscaPs communications with his friends here ; then there was a strong
desire to show opposition to a most unpopular Government under cover of pretended
patriotic feeling; and, lastly, many Senators were desirous that the President-elect,
General Diaz, should have the credit of having renewed relations with England.

So strong did the opposition appear that M. Fernandez told me most confidentially
that he feared he should have to resign. We then agreed that I should write an explana-
tory letter, to be shown to the Senators ; and I added, in reply to an observation, that if it
would satisfy the objections of the adversaries of the measure, I had no reason for opposing
the publication of an explanatory correspondence, and to have it considered an integral
part of the Agreement.

Wishing to satisfy myself as to the real character of the opposition, I requested
Mr. Carden to see some of the influential Senators, and to show them confidentially the
explanation offered. This removed all excuse for opposition, and the Agreement was
ultimately passed. I have to thank Mr. Carden for the success which attended this
delicate mission.

I believe that much of this opposition was due not so much to the Agreement itself
as to the use which the present Government might be able to make of the renewal
of relations with England in their negotiations for the settlement of the debt due to the
bondholders. The unpopularity of this latter measure principally arises from the great
increase of the debt (2,700,000/.), which amount is required, it is said, to meet the
expenses of conversion. Evidently this is not the true explanation.

The Preliminary Agreement ultimately passed the Senate by a vote of thirty-nine to
one, with the proviso that the explanatory correspondence should be considered an integral
part of the Agreement. I had no hesitation in accepting this proposal, as it does not in
any way affect the real value of the Agreement, which consists in the Article according tk-
most-favoured-nation treatment in all matters whatsoever.

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rfor 66e& it affect in reality Article I, : ad the agreement to 6rtfer an impartial inquiry
into all British claims, and to pay the amounts already due ana that thay be foiind due,
remains in its integrity, and the written explanations are only a record of the conversa-
tions which bad already passed between M. Fernanda and myself.

The very difficulties which we have had to overcome have proved to me the strong
under-current of friendly feeling towards England which pervades the governing class— in
truth, I might add all the intelligent classes — and that the apparent opposition to the
Preliminaries has been entirely a question of internal politics.

As diplomatic relations are now in fact renewed with England, I lost no time in
proposing to M . Fernandez that we should commence negotiations on the Commercial
Treaty as well as an Extradition Treaty, and I have this morning officially written to him
on the subject.

M. Fernandez, however, having had to suffer all the abuse which a vindictive
opposition to an unpopular Government could pour upon him, and having been branded as
a traitor to his country, appears unwilling to undertake himself the negotiations of the
Commercial Treaty, and may appoint a Plenipotentiary ; but he expressed a desire to
settle the Extradition Treaty himself.

[ have &.c
(Signed) ' SPENSER ST. JOHN.

Minutes by Sir J. Pauncefote and Mr. Bergne.

It is necessary to call attention to the terms in which the Preliminary Agreement has
been ratified by the Mexican Government.

It is stated in the Protocol of exchange that Her Majesty's Government accept the
terms in which the said Preliminaries had been approved by the Senate, as explained in
the notes appended to the ratification, and that Her Majesty's ratification is extended to
those terms.

These terms involve two important points : —

1. That the claims referred to in Article I do not comprise the bondholders* debt.
This interpretation has been apparently accepted by Her Majesty's Government (see
telegram to Sir S. St. John, 16th September, and despatch No. 50 to him), so that on
this point there does not appear to be any objection.

2. That the settlement of the other British claims referred to in Article I is not to be
considered as an International Convention or pact.

In regard to this Lord Granville has already agreed to the view that this interpretation
should be disclaimed, and that although the Mexican Government are entitled to carry
out the inquiry and liquidation in their own way, it will be a breach of the Convention if
they omit to do so.

A draft in this sense to Sir S. St. John, in reply to his despatches Nos. 41 and 42, is
therefore annexed for consideration. \

J. P.

The remaining point to be considered is whether the notes containing these reserva-
tions, involving as they do important questions as to the meaning of the Agreement,
should be laid before Parliament.

On the whole, I should be inclined to suggest that the Agreement should be laid as
ratified, without these notes, inasmuch as correspondence is still passing with respect to
their meaning ; or that, as the Agreement has already been laid in correspondence, it
would be more prudent to defer laying it again as a ratified instrument until these points
are cleared up.

J* H. G. B.

No. 98.

Sir S. St. John to Earl Granville. — (Received November 20.)
(No. 42.) '

My Lord, Mexico, October 81, 1884.

I HAVE the honour to inclose four despatches which close the correspondence
relating to the Preliminary Agreement for the renewal of relations. Those of the 22nd
and 23rd refer to the vote of the Senate, while those of the 26th and 27th relate to the
[309] N

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wording of the certificate of exchange. As I did not consider the wording of this
document of any practical importance, and remembering the difficulties of M. Fernandezs'
position, I accepted his project.

M. Fernandez took this occasion to write me a very flattering letter, to which I
responded in suitable terms. I believe our long negotiations together have produced a
feeling of mutual friendliness and confidence, which has rendered our intercourse not only
agreeable but, I trust, advantageous to our respective countries.

I have, &c.
(Signed) SPENSER ST. JOHN.

Inclosure 1 in No. 98.
Sefior Fernandez to Sir S. St. John.

(Translation.)

M. le Ministre, Mexico, October 22, 1884.

I HAVE this moment received from the Secretaries of the Senate an official com*
munication, in which they notify me that the Senate has issued with yesterday's date a
Decree of the following tenour : —

"The Senate of. the United States of Mexico approves the Preliminaries for the
renewal of relations between Mexico and Great Britain, signed the 6th day of August of
the present year by the Under-Secretary for Foreign Affairs of the Republic and the
Special Envoy of Her Britannic Majesty, with the proviso that the notes exchanged
between both Plenipotentiaries on the 17th, 19th, and 20th September last, which will be
published with the said Preliminaries, should be considered as an integral part of this
Agreement in order to define the meaning of Articles I and IV. In consequence, the
examination, liquidation, and payment of the credits of British subjects will be exclusively
subject to the dispositions of the laws of Mexico in regard to the settlement of the
Public Debt."

If, as I do not doubt, your Excellency's Government accepts the terms in which the
Senate has approved the Preliminaries, and if your Excellency is good enough to com-
municate the same to me officially, I will immediately proceed to prepare everything
relating to the exchange of the ratifications of the said Agreement, commencing by
submitting to your Excellency a project of a certificate of exchange.

Accept, &c.
(Signed) JOSfi FERNANDEZ.

Inclosure 2 in Ho. 98.
Sir S. St. John to SeAor Fernandez.

M. le Ministre, Mexko y October 23, 1884.

I HAVE the honour to acknowledge the receipt of your Excellency's despatch of the
22nd instant, in which you inform me that you have received from Secretaries of . the
Senate a communication stating that the Senate of the United States of Mexico approve
the Preliminaries for the renewal of relations between Great Britain and Mexico, signed on
the 6th August of the present year, on the understanding that the communications of the
17th, 19th, and 20th September, exchanged between your Excellency and myself,
explaining the meaning of Articles I and IV, should form an integral part of said Agree-
ment, and that these despatches and the Preliminary Agreement should be published
together, and that the examination, liquidation, and payment of all the claims of British
subjects should remain exclusively subject to those Mexican laws which regulate the
Public Debt.

As the despatches referred to in the preceding paragraph explain the meaning which
Her Majesty's Government have always attached to Articles I and IV of the said Preliminary
Agreement for the renewal of relations between Great Britain and Mexico, Her Majesty's
Government accept the terms in which the Senate has approved the Preliminaries as
contained in your Excellency's despatch of yesterday's date.

As the ratification of the Preliminary Agreement by Her Majesty the Queen has
arrived, I shall be prepared to make the exchange of the ratifications whenever it may
suit your Excellency's convenience.

Accept, &c
(Signed) SPENSER ST. JOHN.

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Inclosure 3 in No. 98.

SeHor Fernandez to Sir S. St. John.
(Translation.)
M. le Ministre, Mexico, October 26, 1884.

AS I had the honour to announce to your Excellency in my note of the
22nd instant, I now take the opportunity to forward a project of a certificate of exchange
of the ratifications of the Preliminaries which it fell to the fortune of your Excellency and
of myself to sign on the 6th August last.

I flatter myself with the hope that your Excellency will find nothing objectionable in
this project, and if this prove to be the case, I request you to be good enough to forward
me a translation in English in order that the certificate of exchange maybe written in both
languages.

This is probably the last official note which I shall have to address to your
Excellency before putting the final seal to the negotiations which our Governments
confided to us, and I cannot lose so opportune an occasion to manifest to your Excellency
my sentiments with respect to Her Britannic Majesty's Special Envoy.

It is my profound and sincere conviction that the tact and the prudence shown by
your Excellency, no less than the attentive study which you have made of this country
and of its condition, of its Government and of its convictions and views, have been
an element which has been the principal foundation of the happy termination of these
negotiations.

I much doubt whether any other person, wanting in the qualities shown by your
Excellency, and placed in different conditions from those in which your Excellency has so
judiciously known how to establish himself by means of observation and quiet study, would
have been able to arrive at so happy a result.

Accent &c
(Signed) ' JOSfi FERNANDEZ.

Inclosure 4 in No. 98.
Sir S. St. John to Sefior Fernandez.

M. le Ministre, Mexico, October 27, 1884.

1 HAVE the honour to acknowledge the receipt of your Excellency's despatch of the
26th instant, inclosing a form of a certificate of exchange of the ratifications, which you
express a hope may meet with no objection on my part.

I have carefully examined it, and it appears exactly to meet the circumstances of the
case, and I therefore accept it as it stands. I inclose a translation.

I have very sincerely to thank your Excellency for the flattering and friendly manner
in which you have referred to my efforts to bring about a renewal of relations between our
respective countries.

Her Majesty's Government, though fully aware of the firm stand which your
Excellency has always taken whenever you considered that the interests of your country
were involved, and your scrupulous care to eliminate from every proposal any terms
which could be considered to militate against those interests, have always desired me to
take the first possible occasion to thank your Excellency for the considerate and friendly
manner in which you have carried on these negotiations now so happily brought to
a termination.

Your Excellency will permit me again to thank you for the very flattering communi-
cation of yesterday's date, and to express my belief that the renewal of relations between
Mexico and Great Britain will be equally advantageous to both countries.

Accept, &c.
(Signed) SPENSER ST. JOHN.

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No. 99.

Earl Granville to Sir S. St. John.
(No. 60-)
Sir, Foreign Office, November 25, 1884.

I TRANSMIT herewith a copy of a letter from Mr. A. P. Vivian, M.P.,* inclosing an
application from Mr. Wm. Rabling, who has a claim against the Mexican Government,
requesting to be informed whether that claim will be included with those of other British
subjects to be investigated under Article I of the Preliminary Agreement of the
6th August last.

A copy is also inclosed of the Parliamentary Return referred to by Mr. Rabling, t as
well as of the reply returned to Mr. Vivian, t and of a Memorandum on the case drawn up
in the Librarian's Department of this Office. §

I request that you will ascertain and report to me when and in what manner
the Mexican Government propose that the investigation with respect to the claims of
British subjects provided for under the Preliminary Agreement of the 6th August last shall
take place.

I am, &c.
(Signed) GRANVILLE.

No. 100.
Mr. Lister to Mr. A. P. Vivian, M.P.

Sir, Foreign Office, November 25, 1884.

IH" reply to your letter of the 10th instant in regard to Mr. Wm. Rabling's claim
against the Government of Mexico, I am directed by Earl Granville to state to you that
inquiries will be made respecting the investigation which is to be instituted into British
claims against that country under the Preliminary Agreement of the 6th August last ; and
that as soon as Her Majesty's Government are informed as to the time when and the
manner in which the Mexican Government propose that the investigation shall take place
a notice of the arrangements decided on will be inserted in the " London Gazette."

I am to forward herewith a copy of the papers on the subject which have been laid
before Parliament this Session. ||

I am, &c.
(Signed) T. V. LISTER.

No. 101.

Mr. Fuller to Sir J. Pauncefote. — (Received November 29.)

Thatched House Club, St. James 9 Street,
Sir, November 28, 1884.

I HAVE the honour to inclose herewith documents relative to the claim of my late
father, Mr. Thomas Fuller, on the Mexican Government for the embargo of his property
by the troops of General Puablita in the month of November 1857.

I have, &c.
(Signed) THOS. FULLER.

No. 102.
Mr. A. P. Vivian, M.P., to Lord E. Fitzmaurice. — (Received December 4.)

26, James Street, Buckingham Gate, S.W.,
Dear Fitzmaurice, December 3, 1884.

WILL you please have the inclosed from Captain Rabling duly considered, and let
me hear the result. It seems a very clear case for compensation, and I sincerely trust
something may be dene for him.

Yours, &c.
(Signed) A. PENDARVES VIVIAN.

# No. 95. f " Miscellaneous No. 9 (1881)." J No. 100.

§ No, 96. || " Mexico No. 1 (1884)."

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Ipclpsure in Np. 1Q&
Afr. Bpbling to Ifr. A, If. fyvUin, ^P T

Jfeax Sir, Bare Bracket Jfpuse, Cfimbftrne, December \, 1884.

I i^JML extremely obliged to you for tHe troutyije you ljave taken in the matter of, my
claim against the Government of Mexico, and now peg to tftank you for your letter to hand
this morning, with the two inclosures.

I cannot see how it can be possible that my claim can be ignored in the proposed
investigation, as it was accepted by the Consul at the city of Mexico at the time* and
afterwards by Her Majesty's Minister to that country, as a " good British claim.'; My
captor was an active Colonel in the service of Juarez, the then President of the country, at
the time of the invasion of the French. I was travelling in a stage coach to the city of
Mexico, when I was arrested by Colonel Fragoso and taken to the woods, his only reason
being that he wanted money to support his troops there, about 500 men. After nineteen
days' arrest I was liberated by paying the ransom, receipt for which was given me by the
Commander of the troops, which, with all the other vouchers, I lodged with Mr. Glennie,
Her Britannic Majesty's Consul. Juarez, on hearing of my arrest, at once sent an official
letter to Fragoso demanding my immediate release. I have by me a copy of the President's
order, which appeared in the " Diario Oficial " of the time, which plainly shows that
Juarez disapproved of my capture.

I must apologize for trespassing so long on your valuable time, and again most
sincerely thanking you for the action you have taken in this matter, I remain, &c.

(Signed) WM. RABLING.

Kb. 103.
Mr. Lister to Mr. Fuller.

Sir, Foreign Office, December 4, 1884.

YOUR letter of the 28th ultimo, with its inclosures, respecting your claim against
the Mexican Government, has been laid before Earl Granville.

In returning you these inclosures I am directed by his Lordship to state to you that
inquiries will be made respecting the investigation which is to be instituted into British
claims against that country, under the Preliminary Agreement signed at Mexico on the
6th August last ; and that, as soon as Her Majesty's Government are informed as to the
time when, and the manner in which, the Mexican Government purpose that the investi-
gation shall take place, a notice of the arrangements decided on will be inserted in the
u London Gazette. "

I am to forward herewith, for your information, a copy of the papers on the subject
which have been laid before Parliament this Session.*

I am, &c.
(Signed) T. V. LISTER.

No. 104.

Earl Granville to Sir S. St. John.
(tfo. 61.)
Sir, Foreign Office, December 8, 1884.

I HAVE received your despatches No. 41, Confidential, and Ho. 42 of the 29th and
3 1st October, in which you forward the Mexican ratification of the Preliminary Agreement
of the 6th August, 1884, the Protocol of exchange, and copies, included in the ratification,
of the notes which have passed between yourself and Seiior Fernandez respecting the
interpretation to be assigned to Articles I, II, and IV of the Agreement.

As the exchange of ratifications thus effected is recorded in terms which were not
contemplated by Her Majesty's Government, and as it is further stated in the Protocol of
exchange that " Her Majesty's Government have accepted the terms in which the Senate
had approved the said Preliminaries, and that therefore the ratification of Her Majesty the
Queen, although it was not so expressed, is, and ought to be, considered as extended to the
terms in which the Mexican Senate approved the Preliminaries/ 9 it is necessary that I

• " Mexico No. 1 (1884)."

[309] O

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