De la Huerta–Lamont Treaty

The De la Huerta–Lamont Treaty (Spanish: Acuerdos De la Huerta-Lamont) was a treaty signed in 1922 between Mexico and the International Committee of Bankers on Mexico (ICBM) on Mexico's substantial debts after the Mexican Revolution. The treaty was negotiated by the Secretariat of Finance and Public Credit, Adolfo de la Huerta, and the chairman of the ICBM, Thomas W. Lamont. It was considered the initial step in the normalization of the foreign relations of Mexico and was the basis of the next several decades of Mexican foreign financing agreements. Mexico had been in default on its bonds since late 1913. Claiming pressure from European bankers, in 1918, Lamont solicited the approval of the State Department to organize an international committee of bankers. In February 1919, the State Department granted approval to bring together American, British, and French banks, which were concerned with investments in Mexico on the condition that control of the committee's policy remain in American hands. Initially, 50% of the seats on the committee were for American banks, with 25% each for English and French banks. Banking interests from Switzerland, Netherlands, and Belgium were later added to the committee. On February 23, 1919, bankers and representatives of foreign bondholders created the ICBM. The ICBM included the most prominent and influential commercial and investment banks of the time. It was designed to be a powerful mediator between bondholders and the Mexican government. No major bank in the world would have been able to build a syndicate to lend to Mexico without having a selection of ICBM members. The ICBM agreement stated that Mexican debt bondholders would agree to adhere to the ICBM agreements with the Mexican government. At its peak in 1925, the ICBM represented 97% of Mexico’s debt holders. There was a significant amount of pressure from both the United States and Europe for Mexico to repay its debts and to deal with issues around Article 27 of the Political Constitution of the United Mexican States.