File No. 812.6363/161.
Vice Consul Bevan to
the Secretary of State.
[Extract.]
No. 1344.]
American Consulate,
Tampico,
January 14, 1915.
Sir: With further reference to my telegram to
the Department dated January 11, 1915, reporting that several of the oil
companies in Tuxpam had been ordered to close down on account of a new
oil decree, I have the honor to transmit herewith a Spanish copy of the
decree, and an English translation which includes the preamble which was
not published with the decree in Tampico. * * *
If permission is refused to all of the oil companies operating in the
Tuxpam, Panuco, Soto, La Marina and Topila oil fields, which so far has
been the case, over one thousand American employees will be thrown out
of positions; besides the Americans there will be a large number of
foreigners and not less than 20,000 Mexicans. * * *
The Consular Corps met this morning at this office and discussed the
local situation with Captain Rodgers of the U. S. S. Delaware and Captain McNamee of the U. S. S. Sacramento. It was the unanimous opinion that it would be wise
for the United States Government to furnish transportation to all
Americans out of employment, and especially to the destitute Americans
now in Tampico. By getting them out of Tampico a serious element of
danger will be removed. It would not be necessary to send a Government
ship to Tampico or to pay the regular fare for passage; the oil
companies that have steamers under the American flag would be only too
glad to be allowed to carry their employees back to the United States on
their tankers. * * *
I have [etc.]
[Inclosure—Translation.]
Decree of January 7, 1915.
Venustiano Carranza, First Chief of the Constitutionalist Army,
Acting Chief Executive of the United States of Mexico, and Chief of
the Revolution, by virtue of the extraordinary faculties with which
I am invested, and
Considering that it is necessary to revise in a complete and radical
manner the oil legislation of the country, carefully establishing
rules and regulations in regard to the matters relative to the
exploration and exploitation of the oil and gas deposits existing in
the territory of the Republic, so as to avoid the oil industry’s
continuing to be developed, as it has been up to the present, only
as a benefit to oil enterprises, with great damage to agriculture
and to the waterway communications of the country, without the
nation or the Government having received from said exploitations the
just profits they are entitled to;
Considering that several oil companies have been installing oil
conduits, carrying out works of exploration and exploitation,
well-drilling, and other construction without proper authorization
from the legitimate Government of Mexico, and that said works,
arbitrarily done, have reached a great development,
[Page 873]
especially during the troublous state
of this country for the last four years, taking advantage of the
lack of effective means of pressure that the Mexican Government
could exercise;
Considering that it is necessary to stop this unlawful exploitation
that would create more complications, thus embarrassing yet more the
already difficult work of reversing the validity of such
exploitation and of unifying the conditions of the oil property,
which would constantly menace international conflicts because of the
nationality of some of the oil enterprises, which apply with great
facility to foreign governments for protection, notwithstanding that
they do not comply with the just obligations that they have with the
country from which they obtain immense wealth—
Therefore I have seen lit to issue the following:
- Article 1. From this date, and until the compilation of
specific laws governing the legitimate transportation of
petroleum and its derivatives, works for the construction of
oil conduits and drilling of wells, and in general all works
in connection with the exploitation of petroleum, must
suspend.
- Article 2. Under no consideration may work be continued
which is at the present time under way, even if they have
permission granted by legitimate authorities, without first
having special authorization from this Government.
- Article 3. The violation of these provisions make the oil
companies or their employees responsible for the damage
resulting from these works when it is impossible to return
matters to their original condition. The Constitutionalist
Government may order the destruction of these works executed
in contravention of the provisions of this decree at the
expense of the company responsible for the construction,
their administrators and managers, or any other person
whatsoever who may be carrying out or directing such
work.
The pools of petroleum encountered by virtue of operations executed
in contravention of this decree will be considered the property of
the nation.
V. Carranza.
Vera Cruz
, January 7, 1915.
