File No. 312.115/103.

Vice Consul Davis to the Secretary of State.

[Telegram.]

Sir: I have the honor to confirm my telegram to you on October 17. I afterwards came in possession of facts in connection with the concession of the Compañía Galletera Nacional which in substance are these: In the articles of concession the Company was exempt from all kind of taxation for a term of twenty years (State taxation), but [Page 781] the concessionaires waived all rights as foreigners in any and everything pertaining to its affairs.

This latter clause is upon what hinges the persistence of the local authorities here in prosecuting the matter, is my opinion.

I have [etc.]

Will B. Davis
.