File No. 812.512/1358
[Untitled]
308. After discussion mining taxes with Cabrera this morning believe mining companies which cannot prove absolute financial inability through various causes attributable directly to failure de facto Government to protect will be doing wisely to pay taxes last tercio before September 1 as extension time payment without penalty rather improbable for reason that Government wishes to test question at that period current tercio in anticipation remedial action. While payment taxes may seem adverse to future interests in the way revision, firmly believe it will operate in reverse for am assured can secure concessions later which (will affect) will establish good will as precedent thereto. Cabrera told me frankly that they needed money badly but that they desired to do justice and wanted time for investigation and experience for demonstration. Voluntarily said would be glad to work with me on future adjustment whole matter and was sure satisfactory agreement could be reached.
Think Department’s advice to companies as stated in 307, August 19, noon, appropriate and that policy suggested herein expedient for most companies. Know that similar advice being given by many representatives mining interests here.
However, have made request for extension time payment without twenty-five per cent penalty but think have my answer already. Government fearful of mines closing and anxious for reopening idle mines but evident to me that Carranza opposes further concession just now.