The Union Daily Times

AFFAIRS OF MEXICO ARE DISCUSSED

Washington, Aug. 25. (By the Associated Press) - Mexican affairs were discussed today by Secretary Kellogg and Ambassador Sheffield at a prolonged conference but the only official statement resulting from it was an affirmation by the Secretary that Mr. Sheffield will continue at his post.

Contradicting published reports that Mr. Sheffield would resign, the secretary's statement said, the ambassador would return to Mexico City upon expiration of his leave of absence. It expressed "absolute confidence" in him and declared the state department "does not desire him to resign."

Mr. Kellogg declined to discuss other phases of the conference today but there were indications that it was concerned mainly with the situation in the southern republic which prompted the secretary a year ago to issue a statement declaring Mexico was on trial before the world. The pronouncement set forth that Mexico would receive the support of the Washington government only so long as it protected American lives and American rights and complied with the international engagements and obligations.

The state department apparently is comparatively satisfied on the whole with the progress of the negotiations still under way over Mexican land and petroleum laws, concerning which this country made representations insisting that they should not react harmfully to American interests.

Other developments of recent years, however, still await settlement between the two countries. Among them various claims and other questions such as the restoration of American properties taken in violation of the Agrarian laws and for which no compensation has been all that the Washington administration has desired.