File No. 812.011/53


235. Your telegram 234, June 6, 5 p.m., and my 229, June 7, 6 p.m. Received confidential information that petroleum decree called for by Congress has been prepared and was about to be issued. I requested Foreign Office today to ask President Carranza to delay promulgation as I believed you might wish to have me present to him certain considerations on this subject. I hope to secure draft of proposed decree to-morrow and I am informed confidentially that it will provide tax equivalent to about ten per cent but that the Government is disposed to give sympathetic consideration to views of oil companies (?) and other matters outstanding between companies and the Mexican Government. It will be difficult if not impossible under the pressing circumstances to delay very long the issuance of this decree. Will telegraph synopsis as soon as draft is received.