4 DECEMBER 1926, Page 2

The State Department of Washington is still treading precarious ground

in developing its policy against Mexico, • but it is distinctly more cautious than it was a few days ago. Then there was agitating talk about a " Bolshevist hegemony " between the United States and the Canal, and there was an idea of readjusting the embargo on the export of arms for the purpose of overthrowing Senor Calles, the President of Mexico. Caution indeed seems to be desirable, for Senor Calles is pretty firmly established and no one could foretell the course of a conflict with a united Mexico. Clearly if the Mexican President had not felt himself to be in a fairly strong position he would not have been able to announce that the clauses of the 1917 Constitution, which determine the conditions on which foreigners may work land and oil concessions, are to be strictly enforced.

• * *