Oil: Mexico: impropriations 218/ 00 /40 Dear Mr. Secretary, Yon will rononber that at one of our recent conversations regarding the Mexican oil dispute, the question of the terms of reference which might be adopted, if it were eventually decided to submit the claims of all the companies to some form of international arbitration, was mentioned and you were ^ood enough to say that you would be glad to lenow tho views of His Majesty1a Government on this point. Foreign Office and have boon instructed to inform you that His Kajesty's Government have now had an opportunity of studying the revised terms of reference which were I duly reported this to the c ommun ic a t ed/ r. Cordell Hull, Secretary of State of the United States, ".ashington, D. C. / JK:FRHM:IIK 2- coranunicated to you on behalf of tho American companies by Kr. Farish In his letter of Karen 14th. I have been authorised to Inform you that His Majesty's Government concur generally In these terms of reference which they regard as very suitable. I should of course make It clear that the enc'.orssmsnt by His I'ajesty's Govern- ment of the mention of the Netherlands Government or of Netherlands Interests in the terns of roforenoe i3 subject to the concurrence of the Netherlands Government. Furthermore, I have been instructed to explain Tilth reforance to Article II of the terms of reference, concerning tho method of appointment of tho Arbitral Tribunal, that Hia iiajasty'a Government feel - subject again to the views of the Ketherlands Government - that It would be appropriate if/ If9 of the two arbitrators to be nominated by the United States, Great Britain and the Netherlands9 one were to be selected by the United States and one by Great Britain and the Netherlands acting jointly*