File No. 812.512/1158

The Secretary of State to Special Representative Rodgers


58. Your 21, April 19. American mining companies disappointed in proposed new rates. They claim new decree more severe, in some respects, than present decree, and request Department to insist on position taken in its June 30 last, that taxes should be collected in accordance with laws emanating from Constitution, and contend that this Government should not recognize forfeitures resulting from inability to pay the present high rates, in view prostrate condition mining and smelting industry in Mexico. Companies also desire to know whether you can effect compromise, on basis of last November payment, namely, eight pesos per pertenencia.

Department does not consider that new decree in any way meets suggestions of this Government. You will therefore renew your best efforts to obtain consent of de facto Government to accept payment present and last tercio’s tax, on basis eight pesos, and to effect material modification in proposed decree. Telegraph soon as possible.

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Mining companies believe persons mentioned last paragraph your telegram probably not bona fide representatives substantial mining interests.