File No. 812.6363/146.
Consul Canada to the Secretary of State.
Vera Cruz, January 8, 1915.
In executive decree dated January 7 Carranza orders all development of oil lands in Mexico, and their operation without permission [Page 871] of Constitutionalist Government, to cease immediately, and that work remain suspended until new laws governing the matter are enacted. He alleges properties being exploited exclusively benefit owners and to the detriment of nation, and that the Government has been defrauded of benefits which should accrue. As foreigners operate most properties, he states their privilege to appeal to their governments for protection gives rise danger of international complications which would embarrass the Government in revision of oil laws. Constitutionalist Government assumes the right to destroy work undertaken after promulgation decree, charging expenses thereof to owners or managers. Well brought in subsequent to decree shall be national property.
Practically all oil lands in Mexico lie within territory still controlled by Carranza.