File No. 812.6363/288

Ambassador Fletcher to the Secretary of State


278. Your telegram 285, June 25, 3 p.m. There seems to be a misapprehension on this subject. By translation Article 6 [transitory Article 6] of the new constitution general legislative action at this extraordinary session is limited to laws submitted by the Executive. The petroleum bill, which the House of Deputies by resolution invited the Executive to submit, was to have been prepared by the Department of Commerce and Industry and was to have been presented to the President for his consideration last week. It was stated that after the President should have examined the bill he would refer it to the Department of Hacienda. As to the revenue features, I am unable to locate just where the project is at present but do not believe it has reached the Department of Hacienda. If not presented to Congress at this session it cannot be discussed until regular session beginning September 1. I am following the matter with the closest attention and will not fail to make opportune representation. I do not anticipate that bill will contain retroactive provisions. You will understand however that values on which export taxes on petroleum are based are revised every two months by the Department of Hacienda.