Zimmermann Telegrams: From Mexico to Berlin; No. 11

From Mexico to Berlin, No. 11, March 23, 1917.

I hear that Mexico, as the loan has no prospect of success owing to the opposition of this Government to control, intends to have all Government business managed by a State Bank which it is proposed to establish with foreign capital. The direction is to be in foreign hands, hence there would be indirect control and the Goverment would share in any ultimate profits. About 300 million marks are required and whoever gives this sum is master of Mexico. I recommend that the money should be furnished in spite of the risk, if our present political and future politicocommercial designs require the preservation of the independence of Mexico against the US and if we are determined to uphold it.

Provided it appear unlikely to me that the Government will default the business seems also to Lima safe and very profitable. Request early decision as the US are already openly offering capital.