Porfirio Diaz seized power in November 1876, the waning months of the Ulysses Grant administration. Rather than following the policy established by Thomas Jefferson of recognizing new governments once they had assumed de facto power and had indicated an ability to fulfill their international obligations, the United States withheld recognition from Diaz in an attempt to gain concessions. Ambassador Foster explained the delay, noting that the United States “waits before recognizing General Diaz as president of Mexico, until it shall be assured that his election is approved by the Mexican people.” Never before had the United States required a Latin American nation to hold a legitimizing election in order to receive recognition.38
When Rutherford Hayes was inaugurated as U. S. president in March 1877, Diaz remained unrecognized. On June 1, 1877, U. S.—Mexican relations were further complicated by an order authorizing U. S. General Edward Ord to cross the Texas—Mexico border at his own discretion in pursuit of bandits or Indians. Rather than allowing the United States to trample upon Mexican sovereignty in an attempt to ingratiate himself to the Hayes administration, Diaz responded by sending General Geronimo Trevino north with orders to cooperate with U. S. officers but to use force to block any U. S. crossing of the border. Fortunately, both Ord and Trevino favored cooperation rather than confrontation. Ord directed his force to cross the border only when no Mexican troops were in the area, and Trevino worked to coordinate movements of his troops with those of Ord. General Ord’s order enraged Mexicans, but did cause them to invigorate their campaign to suppress Indian raiding across the border. Foster noted that “no effort was made by Mexico to suppress the outlaws until after the instructions to General Ord were issued.” Eventually, not only did the two generals establish a working relationship to suppress lawlessness but Trevino also married Ord’s daughter.39
Diaz mounted a publicity offensive in the United States to promote trade with and investment in Mexico. He invited American investors to Mexico and granted them huge concessions and subsidies. Not surprisingly, these investors then lobbied in the United States for improved relations between the two countries. In 1878, Diaz sent Manuel Zamacona, an experienced diplomat, to the United States to publicize Mexico’s resources. He also hired two American journalists to produce books and articles supporting the recognition of Mexico.40
Recognition finally came on April 9, 1878. The pressure of American bankers, miners, and potential railroad investors played a major role in the decision to recognize the Diaz administration. U. S. efforts to force Diaz into making concessions backfired, since Mexico’s president refused to concede on any of the U. S. demands, such as the right to “hot pursuit,” an end to forced loans from American citizens living in Mexico, and the elimination of the duty-free zone along the border. U. S. pressure, which Mexicans viewed as heavy handed, soured U. S.—Mexican relations. Diaz enhanced his already solid record as a patriotic war hero by standing up to the United States.41
By the 1870s, recognition by the United States had become a key to stability throughout Latin America. Such recognition signaled that it was safe to make investments and that nations enjoying recognition might obtain loans. It was presumed that the United States would not actively undermine administrations it recognized. Lack of recognition indicated instability and inadvisability for investment, and the possibility of dissidents obtaining U. S. aid to topple the incumbents. The United States, realizing that its recognition had become a valuable commodity, began to charge accordingly.42