File No. 812.6363/143.

Vice Consul Bevan to the Secretary of State.

No. 1248.]

Sir: I have the honor to acknowledge the Department’s instruction advising that the Department is awaiting the receipt of the Governor’s reply to the inquiry addressed to him by this office relative to his interpretation of his decree relative to leases on oil bearing lands in the State of Veracruz.

In am enclosing herewith copies and translations of his reply to the same.

Aguilar strongly implies his decree is retroactive, using the argument of a preceding decree which disowned and declared null all acts of the Huerta administration. By taking advantage of this old decree which was issued at the beginning of the Huerta administration, he states that neither Article 14 of the Federal Constitution, nor Article 5 of the Civil Code of the State of Veracruz, which prohibit the passing of retroactive laws, have been violated, as these articles could not be justly interpreted as applicable to acts already previously declared null and illegal by a preceding decree.

Referring to the fourth paragraph of my letter stating that Colonel Benignos, Jefe de Armas at Panuco, Vera Cruz, advised several representatives of oil companies, that in his opinion Governor Cándido Aguilar did not intend to give the decree a retroactive effect, the Governor replied that his subordinate officers were not vested with [Page 715] authority to interpret his decrees, and that their opinions are unacceptable because unauthorized.

Notwithstanding the foregoing the Governor does not openly state in plain unmistakable language that the decree is retroactive. He skillfully avoids committing himself in writing to this extent, but there is no doubt that he intends it to be so construed by this office.

I have [etc.]

Thomas H. Bevan
.
[Inclosure—Translation.]

Governor Candido Aguilar to Vice Consul Bevan.

Esteemed Sir: It is highly pleasing to me to reply to your letter of the 11th of September last past in which you request some information with respect to the decree which I issued under date of the 3rd of August of the current year relative to contracts upon petroleum bearing lands in this State, and desire me to inform you in regard to some details which you believe necessary for protecting American interests which at present are found in your care.

Although the decree referred to, which must be understood applicable for consonance with another just preceding by which were disowned and declared null all acts of the overthrown government of the usurper, it is inspired by the most sane and honest spirit of morality and of justice and does not prejudice in the least the interests entrusted to your active and able protection, considering that it only is to establish a previous formality protective of the fiscal interests and above all those of the helpless people who do not know generally the consequences of the contracts which they celebrate upon productive and very valuable petroleum bearing lands, I have not the least objection to advising you, as I do by the present of the details which you request for the purpose which you kindly indicated to me.

Wherefore, I now permit myself to state to you in response to your questions included in your said letter: that yes it is indispensable in conformity with the decree mentioned that all contracts which may be celebrated upon petroleum bearing lands in the Cantons of Ozuluama, Tuxpam, Tantoyuca, Chicontepec, Misantla and Minatitlan be presented for the approval of the superior government of the state, not in minutas, as you believe can be done, but in the original escrituras, before being signed by the contracting parties and before being authorized by the respective notary; or in terms most clear and precise the Government under my charge prohibits absolutely the taking of minutas of contracts upon lands situated in the Cantons referred to on account of same not having any validity even though they may be authorized by some notary.

The decree upon petroleum bearing lands in the clear and precise terms in which it is drawn must be punctually obeyed by all those who may have the necessity of celebrating contracts of the nature to which same refers; and there are no serious obstacles to this in Article 14 of the Federal Constitution, nor article 5 of the civil code of the state which never can be rightly interpreted as applicable to acts already previously declared null and illegal by a foregoing decree on account of having been executed by venal functionaries and betrayers who were in the unconditional service of a government spurious and immoral emanating from treason and from crime and therefore out of the reach of constitutional precepts among which are enumerated those which you invoke.

Also I permit myself to make known to you for your information that the superior government of the state has not conceded authority to any of the Jefes de armas to interpret at his free will the terms of the decree so many times mentioned, since this is the exclusive faculty of the said government, wherefore any opinion given in that connection by said jefes is unacceptable because unauthorized.

Hoping that you are satisfied with the explanation (construction or interpretation) with which I have the pleasure of furnishing you, to me it is very pleasing to extend to you at the same time assurances of my attentive consideration.

C. Aguilar
.