File No. 812.6363/173.

Vice Consul Bevan to the Secretary of State.

No. 1360.]

Sir: With reference to my despatch No. 1354 of February 6, I have the honor to transmit herewith copies of communications between J. Cabrera, the chief oil inspector for the District of Tampico, the Cortez Oil Corporation, and this Consulate, in connection with an application for permission to continue special work to safeguard the company’s well located at Tepatate in the State of Vera Cruz, which at the present time is in danger of coming in and flowing over the surrounding country, causing irreparable damage.

In answer to the protest of this office against American companies being expected to conform with prospective laws and regulations, the Chief Inspector, Señor J. Cabrera, advised this office in writing (inclosure 1) that permission had been granted the said company to continue this special work. I immediately conferred with Mr. Middleton, the Tampico manager of the company, and he advised me that he had received a letter from the Inspector (inclosure 2) stating that permission had been granted, but only on the conditions as expressed in the first letter, namely, conforming with laws not yet enacted.

Thereupon I acknowledged the letter of the Inspector and advised him that I had notified the Cortez Oil Corporation that permission had been granted to go ahead with their work (inclosure 3). As he had advised the company to the contrary, another letter (inclosure 4) was written by the company requesting a confirmation of the contents of the letter from this office stating that permission had been granted unconditionally. An answer was received stating that the permission granted was valid until the enactment of the new petroleum laws, which was all that the company had requested in the first place (inclosure 5).

The duplicity of this official may be clearly seen by this correspondence. He actually advised this office that the permission had been granted, and the company at the same time that it had not. [Page 880] To make his statement to this office good, he issued the permit as it was requested in the first place.

Several other companies have requested similar permits, but he has referred them all to the Secretary of Fomento at Vera Cruz, who up to the present time has not even honored them with a reply.

I have [etc.]

Thomas H. Bevan.
[Inclosure 1—Translation.]

The Chief Inspector to Vice Consul Bevan.

No. 53.]

Sir: In answer to your note of the 5th instant, I inform you that the provisional permit that I granted to the Cortez Oil Corporation does not imply that the said corporation must submit beforehand to laws and regulations of which it has no knowledge; it only stipulates that the permit is of a provisional character good only until the new oil laws go into effect, whereupon the said corporation will have to request a new permit, submitting to the law which will then have been brought to its notice.

I am [etc.]

F. Cabrera.
[Inclosure 2—Translation.]

The Chief Inspector to the representative of the Cortez Oil Corporation.

No. 52.]

Sir: In answer to your request for a permit, made on the 4th instant, and amplifying my note No. 43 of the 3d instant, I inform you that the permit is granted to you by virtue of the authority given me by the Department of Fomento, and is not in conflict with Article 2 of the Decree of January 7, 1915, which refers to civil and military authorities that do not depend from said Department. For this reason you should not fear that my superiors will revoke the permit given by me, but you should request a new permit when the new laws and regulations have been issued.

With regard to the data that you have given me, I have taken due note of the same and trust that as soon as you have the missing data you will send it to me, also the data as to the enlargement and completion of storage facilities, as I have instructions to see that no loss of the riches of the nation, and consequent damage to neighboring landowners, be permitted in any way.

For this reason I repeat the permit that you ask for, under the conditions expressed in the said note No. 43, and you may continue your work immediately.

I am [etc.]

F. Cabrera.
[Inclosure 3.]

Vice Consul Bevan to the Chief Inspector.

Sir: I have received your esteemed note No. 53 dated the 6th instant and that literally says: [quoting Inclosure 1 above]. And I am today taking the matter up with the Cortez Oil Corporation, sending them a copy of your note. I thank you for your prompt answer [etc.]

Thomas H. Bevan.
[Inclosure 4—Translation.]

The representative of the Cortez Oil Corporation to the Chief Inspector.

Sir: I have received your note No. 52 of the 6th instant, answering mine of the 4th and amplifying yours of the 3d, No. 43.

[Page 881]

I understand that this permission that you have given me is by virtue of authority given you by the Department of Fomento, and is not in conflict with Article 2 of the Decree of January 7, 1915, which refers to civil and military authorities that do not depend from said Department; and that for this reason we should not fear that they will revoke the permission given by you; but that we should request anew a permit when the respective laws and regulations have been given out.

I refer to the final part of your note No. 52, which says:

For this reason I repeat the permit that you ask for under the conditions expressed in the said note No. 43, and you may continue your work immediately.

I ask you to please make clear to me if I am to understand that the Cortez Oil Corporation can do the work that they have asked permission to do, without being obliged by this act to submit to the laws and regulations that will shortly be given out by the Department of Fomento, or if said enterprise is to submit to them as you advise me in your note No. 43 aforesaid.

I am [etc.]

Mordelo L. Vincent.
[Inclosure 5—Translation.]

The Chief Inspector to the representative of the Cortez Oil Corporation.

No. 56.]

Sir: In reply to your note dated the 8th instant requesting explanation of my notes Nos. 52 and 43 of the 6th and 3d instant respectively, I inform you that the permission conceded to you is valid only until new petroleum laws are issued, and after that date you may continue your works in accordance with the provisions of those laws.

I am [etc.]

F. Cabrera.