File No. 812.6363/264

Mr. Parker, representing American interests, to the Secretary of State

No. 683

Sir: With reference to the Department’s telegraphic instruction No. 53617 of November 7, 7 p.m. directing me to request the proper authorities to furnish for transmission to the Department an official copy of the decree relative to the exploration, exploitation and commerce of minerals, etc., I have the honor to transmit herewith a copy of the note which I have received in reply to my request and the original enclosure therewith, together with translations of the same.

I have [etc.]

Charles B. Parker
[Inclosure 1—Translation]

The Minister of Foreign Affairs to Mr. Parker, representing American interests

Mr. Representative: In answer to the esteemed note No. 193 of your excellency, dated November 9 last, I have the honor to make known to you that, in accordance with your request, I herewith send an original copy of the decree dated the 31st of August, 1916, relative to the exploration, exploitation and commerce of minerals, beds of coal, bituminous deposits, petroleum and all other carbides or hydrocarbons, liquid or gaseous, which are found in the subsoil of the National Territory, that your excellency solicited from this office by instructions from the Secretary of State of the United States, advising that in the preamble of the above-mentioned decree the foundations and limits of the same are expressed very clearly.

I repeat [etc.]

C. Aguilar
[Subinclosure—Translation]

decree of august 31, 1916, relative to the exploration, exploitation and commerce of minerals, petroleum [etc.]

Venustiano Carranza, First Chief of the Constitutionalist Army, in charge of the Executive Power of the United Mexican States, in exercise of the extraordinary faculties with which I find myself invested; and considering;

1.
That it is the exclusive faculty of the General Government to make obligatory laws for the whole Republic on mining, commerce and banking institutions, national lands and forest, public lands, waters of federal jurisdiction, fishing in territorial waters, and on the organization of work in the various industries.
2.
That the fundamental reason on which is based the said faculty is that the branches indicated constitute the principal sources of national wealth, whose legislation and vigilance must be entrusted to one management and administration only, to the effect that, with uniformity of judgment and action, they will direct them to such channels as will protect them for the prosperity and enlargement of the country.
3.
That among these sources of wealth they must consider as included the coal mines, the bituminous compositions, the petroleum and all other carbides and hydrocarbons, liquid or gaseous, which are found in the subsoil of the National Territory, and which for their immense quantity and incalculable value, make of these products a most important element in the commerce, as well in the interior as in the exterior of the Republic.
4.
That whatever the laws or dispositions of the Governors of the States in these branches of production, they not only invaded the proper and exclusive sphere of the Federal Government, but also, complicating and even making contradictory the measures tending to their development and expansion, prevented the legislative and administrative unity necessary for their best investment and profit in favor of the general interests and even of the private enterprises.
5.
That in the present circumstances it is the imperious duty of the presiding General Government to care for zealously, not only the conservation of the national wealth, avoiding as much as possible the deterioration or diminishing of them, but also to give facilities and measures efficacious for their greatest production and development, which would have much influence in the real pacification and in the financial budget of the Republic, I have seen fit to decree the following:
  • Article 1. The Governors of the States cannot issue laws or decrees, nor dictate dispositions, nor administrative measures on commerce, mining, banking institutions, forests and uncultivated and national lands, public lands, waters in the Federal jurisdiction, fishing in territorial waters, organization of the work in the various industries, and on the exploration, exploitation and commerce of minerals, coal mines, bitumens, petroleum and all other carbides and hydrocarbides, liquid or gaseous, which are to be found in the subsoil of the National Territory. This prohibition is extended to all branches which are of the exclusive jurisdiction and competition of the Federal authority.
  • Article 2. All of the laws, decrees and dispositions which have been dictated or are dictated hereafter, by the Governors of the States, on the branches to which the preceding article refers are null and void and of no legal value or effect.

transitory

The present law will begin to rule from the date of its expedition.

For this reason I order that same be printed, published [etc.].


V. Carranza