Foster to Hamilton Fish, December 8, 1876

No. 212. Mr. Foster to Mr. Fish.

Sir: I transmit herewith a decree issued by General Porfirio Diaz, from the city of Oaxaca, on the 26th of September last, and which has been republished in the first issue of the official journal of his government in this city, declaring void the contracts described in the three first articles of said decree made by and with the government of President Lerdo. The fact of its publication officially in this city would seem to indicate the intention of General Diaz’s government to enforce its provisions. It is not entirely clear whether the decree is designed to be retroactive in its effect, or simply to deter persons from making farther contracts with the government of Mr. Lerdo, which at the date of the decree was the one in possession of this capital and of the greater part of the republic, and recognized by the United States and other foreign nations as the only legitimate government of Mexico. If the third article shall be retroactive in its enforcement it will very seriously and to a large extent affect American interests, and even if only made effective from its date, the decree will place in dispute the validity of certain contracts to which American representatives are parties.

I am, &c.,