Office of the Historian

File No. 812.6363/144.

Vice Consul Bevan to the Secretary of State.

No. 1277.]
American Consulate,
Tampico, November 5, 1914.

Sir: I have the honor to acknowledge receipt of the Department’s telegram Nov. 3, 2 p.m., and to enclose herewith a copy of a letter, and its English translation, addressed by this office to Governor Candido Aguilar, relative to oil-bearing lands in the State of Veracruz, Mexico.

The general opinion of the leading lawyers, representing oil interests in Tampico, Mexico, is that it would be unwise to press General Aguilar, at the present time, into deciding the question, as his decision would doubtless be unfavorable. Up to the present time he has completely ignored all inquiries from the oil companies on this subject, and the only public statement he has made relative to his decree, was that contained in his reply to the letter addressed him by this office. In this communication he implies that his decree is retroactive, but does not openly say so. A great deal of pressure is being brought upon him by the oil companies to try and convince him the decree is unconstitutional and violates both Article 14 of the Federal Constitution and Article 5 of the Civil Code of the State of Veracruz, which prohibit the passing of retroactive laws.

The contention of the oil companies is that private contracts entered into prior to the date of the decree (August 3rd, 1914) between [Page 717] private individuals or companies or between companies and private individuals, in good faith, and in compliance with the laws then existing, before notaries or other officials acting in compliance with law, and constituting a lease, transfer thereof, sale or other incumbrance, or transfer of the lands in the State of Veracruz, are entitled to be recognized as valid and existing without the necessity of presenting the same to the Governor, or to one of his subordinates for his approval.

It is to be hoped that the Governor will not construe his decree so as to declare illegal all contracts made during the Huerta administration, as an adverse ruling on this point would cause the American oil interests in the State of Vera Cruz to suffer enormous losses through no fault of their own.

I have [etc.]

Thomas H. Bevan
.
[Inclosure—Translation.]

Vice Consul Bevan to Governor Cándido Aguilar.

American Consulate,
Tampico, November 4, 1914.

My Dear Sir: I have the honor to advise you that I transmitted to the Department of State in Washington a copy of your letter of October 13, relative to oil bearing lands in the State of Veracruz.

In reply to my despatch transmitting same, I have received instructions to advise your excellency that in the opinion of the Government of the United States, the provisions of your July decree relative to oil bearing lands in the State of Veracruz, should not be applied to American citizens, who acquired title to lands, or who instituted or carried on proceedings looking to such acquirement, during the Huerta administration, in strict conformity with, and under regularly established and previously existing legal proceedings, and that said American citizens having interests so accepted or acquired, should have reasonable opportunity to make proof that in acquiring such interests, they conformed to said laws.

I have [etc.]

Thomas H. Bevan
.