File No. 812.63/179
Mr. S. C. Neale to the Secretary of State
Sir: Referring to my letter of June 2, last,2 in which I brought to your attention, upon behalf of the Committee of American and Foreign Owners of Mines and Smelters, the deplorable situation in Mexico and the arbitrary and confiscatory manner in which the de facto Government was acting in respect to American investments in that country, I beg to submit to you certain facts in connection with the property of the Cubo Mining and Milling Company, of Guanajuato and the Mina Mexico Mining Company of Sonora, from which it is apparent that as to the Cubo Mining and Milling Company, of Guanajuato, there is a practical confiscation [Page 723] of the property of that Company, and there is threatened confiscation of the Mina Mexico Mining Company, of Sonora, both caused by the unwarrantable and illegal action of the officials of the de facto Government.
By the decree of General Calles, herewith enclosed and made a part of this letter, it will be noted that the operation of mining properties in the State of Sonora, whether owned by Mexicans or foreigners, must be commenced one month from the date of the decree, which was published in the Boletin Official, May 27.
While my clients have been unable to secure a copy of any decree which the Governor of Guanajuato may have issued, he is evidently on record as authorizing the denouncement and operation of mining properties that are not being operated, as shown by the following translation from the issue of El Democrata, of May 16, 1916:
The Chairman of the City Council at La Luz, Mr. E. Sanchez, authorized by General Jose Siurob, Governor of the State, has invited all residents of that rich ore district to denounce all those mining properties that are not in product because their owners have suspended working them or have abandoned them, in order that they be distributed in camps to be exploited by men willing to do so.
Also the representative of the authority has invited all merchants and farmers out of the district to return and contribute to the prosperity of the district.
As it is well known, the exploitation of mines in the way of camps results in the equitable distribution of the products and is of great advantage not only for the miners but for all working people.
It is safe to predict a brilliant future for Guanajuato if the people will follow the idea of General Siurob, made known to us through the Chairman of the City Council at La Luz.
I wish to impress upon you most earnestly and to call your special attention to the fact that these arbitrary acts of the Governors of Guanajuato and Sonora are not the acts of revolutionists or bandits, but officials of the Carranza Government and it must be presumed are acting in consonance with and deriving their authority from the de facto Government.
I respectfully ask that this important matter be brought to the attention of the Special Representative of the Department in Mexico, with instructions directing him to present, at once, the case to the de facto Government, insisting that the wrongs which I have indicated in this letter shall be promptly remedied and that no further effort shall be made by the de facto Government to interfere with the property rights of the Cubo Mining & Milling Company and the Mina Mexico Mining Company of Guanajuato and Sonora respectively.
I am [etc.]
- Not printed.↩