MEXICO'S DEBTS

Evening Post, Volume CIII, Issue 142, 19 June 1922, Page 7

MEXICO'S DEBTS

BACK INTEREST CANCELLED

ARRANGEMENT FOR FUTURE

PAYMENT.

(UNITED PRESS ASSOCIATION. —COPYRIGHT.)

(AUSTRALIAN - NEW ZBALAND CABLE ASSOCIATION.) NEW YORK, 17th June. An agreement has been signed between Mr. Thomas Lamont, representing an international banker?' committee, and De la Huerta, Secretary of the Mexican Treasury, by which Mexico will resume the payment of partial interest on her external debts amounting to five hundred million dollars'. All' back interest, amounting to two hundred million dollars, has been cancelled. (REUTERS TELEGRAM.) (Received June 19, 9 a.m.) WASHINGTON, 17th June. ■ The payment of interest under the new Mexican .arrangement is to be met out of a fund created by the pooling of oil export taxes and a surcharge on gross railway receipts. The Mexican rail-ways are^to be returned to private, ownership, .and the Government is to assume the railway debts. _ A high official states that Mexico's decision to resume payments on the external debts will have no effect on the attitude of the United States regarding the recognition of Mexico, which is to bo withheld until Mexico guarantees protection of United States property rights and lives within her borders.