The United States and Latin America

by John Holladay Latané

The instructions addressed to Mr. Mathew, both before and since the final triumph of the Liberal party, made the recognition by Great Britain of the constitutional government contingent upon the acknowledgment by that government of the liability of Mexico for the claims of British subjects who, either in their persons or in their property, for a long series of years, can be proved to have suffered wrong at the hands of successive governments in Mexico.[196]

And further on in the same communication the attitude of the British government is expressed yet more strongly:

Her majesty's government will not admit as an excuse for hesitation in this respect the plea that the robbery was committed by the late government. For, as regards this, as indeed all other claims, her majesty's government cannot admit that the party who committed the wrong is alone responsible. Great Britain does not recognize any party as constituting the republic in its dealing with foreign nations, but holds the entire republic, by whatever party the government of it may from time to time be administered, to be responsible for wrongs done to British subjects by any party or persons at any time administering the powers of government.

Mexico, however, was slow to admit this principle of international law. In a letter to Lord John Russell, June 25, 1861, and in other communications, Sir Charles Wyke urged the necessity of a naval demonstration against Mexico. His plan was to take possession of the custom-houses of Vera Cruz, Tampico, and Matamoros on the Atlantic, and of one or two on the Pacific, lower the duties so as to attract the great bulk of trade from other ports, and pay themselves by the percentage to which they were entitled by treaty stipulation.

On the 17th of July, 1861, President Juarez brought matters to a crisis by the publication of a decree, the first article of which declared that "all payments are suspended for two years, including the assignments for the loan made in London and for the foreign conventions."[197]

On the 23rd, Sir Charles Wyke, the British minister, demanded the repeal of this law within forty-eight hours. On the 24th, the French minister demanded its repeal within twenty-four hours. These demands were not complied with and diplomatic relations were immediately broken off by the British and French representatives.

The Spanish government had acted somewhat in advance of the other governments and was already preparing to back its claims by an armed expedition against Mexico. The rupture with the British and French governments very naturally pointed to joint action with Spain as the best means of securing their interests. The United States government, which had just entered upon one of the greatest struggles of modern times and had its hands practically tied as far as Mexico was concerned, regarded the contemplated intervention of European powers in Mexico with grave apprehension, not to say suspicion. So great was the uneasiness occasioned in the United States by the measures in contemplation and so strong was the desire to ward off the threatened danger to republican institutions on this continent, that Mr. Seward authorized (September 2, 1861) the negotiation of a treaty with Mexico for the assumption by the United States of the payment of the interest, at three per cent., upon the funded debt of Mexico (the principal of which was about $62,000,000) for the term of five years from the date of the decree of the Mexican government suspending such payment, "provided that the government of Mexico will pledge to the United States its faith for the reimbursement of the money so to be paid, with six per cent. interest thereon, to be secured by a specific lien upon all the public lands and mineral rights in the several Mexican states of Lower California, Chihuahua, Sonora, and Sinaloa, the property so pledged to become absolute in the United States at the expiration of the term of six years from the time when the treaty shall go into effect, if such reimbursement shall not have been made before that time."[198] All this, of course, was subject to the confirmation of the Senate.

This step was communicated informally to the British and French governments, and the validity of the convention was to be conditioned upon those governments engaging not to take any measures against Mexico to enforce the payment of the interest of the loan until time should have been given to submit the convention to the ratification of the United States Senate at its approaching session. It was also to be a condition that, if the convention should be ratified, Great Britain and France should engage, on their part, not to make any demand upon Mexico for the interest, except upon its failing to be punctually paid by the United States.[199]

Grave objections to Mr. Seward's plan of paying the interest on the Mexican debt were entertained both in Paris and in London. The French minister of state, M. Thouvenel, said to the British minister at Paris:

It might not be possible to prevent the United States offering money to Mexico, or to prevent Mexico receiving money from the United States, but neither England nor France ought in any way to recognize the transaction.[200]