File No. 812.011/21
The Secretary of State to Mr. Parker, representing American interests
Washington, January 23, 1917—10 p.m.
626. Department informed bill introduced Mexican Congress, apparently with sanction General Carranza, providing special concession necessary for petroleum exploitation and giving present owners oil properties one year preferential right obtain such concessions.
On behalf American owners petroleum properties who have expended very large sums in legal acquisition of properties, protest to General Carranza against passage this bill, stating that, in accordance with Department’s understanding, Mexican Government will be able, under provisions of bill if adopted, to impose such restrictions by way of taxation regulations and royalties as will be equivalent to nationalization of industry, to injury of present owners whose properties would apparently be liable to practical confiscation.