File No. 812.6363/205

Vice Consul Bevan to the Secretary of State


New oil decree issued by General Aguilar, January 15, to take effect on date of issuance, will have disastrous effect on Americans and foreigners owning oil lands and leases in Vera Cruz. Main points of decree are as follows: No contract of sale, lease, et cetera, shall be made without the previous consent of the State Government. The owners of lands in Vera Cruz shall not cede, transfer or alienate to third persons or to companies in return for stock or in any other manner lands or rights acquired by virtue of contracts nor the contracts themselves without previous consent of State Government; Lands object of clandestine contract as well as contracts in any manner hidden from the State Government shall be confiscated. All persons who take part directly or indirectly in the execution of contracts referred to in this decree shall be considered as Mexicans whatever their nationality and may not in any case allege the defense of foreign citizenship, nor ask protection or aid from foreign diplomatic or consular officers, nor from the Government of their country, nor have any rights other than the laws concede to Mexicans.

Forwarding copy of decree by mail.