26 MARCH 1927, Page 2

The United States has informed Mexico of its decision to

terminate the Convention which prevents smuggling. The Washington correspondent of the Times describes this announcement as, in effect, an ultimatum. It is thought possible that the denunciation of the Convention may be followed by raising the embargo on arms. How- ever that may be, the obvious intention of Washington is to exert pressure upon Mexico. The State Department as much as says, " There is now a clean slate so far as we are concerned, and we wish to discuss from the beginning the question of our commercial relations." If Mexico accepted this ultimatum without demur it would be open to the United States to insist then upon a revision of those Mexican oil and land laws which have caused so much acrimony.