File No. 812.6363/365
The Ambassador in Mexico ( Fletcher ) to the Secretary of State
872. Adverting to last sentence of paragraph numbered three, your 883. In reply to certain questions propounded by the Department of Industry and Commerce with reference to interpretation of Article 27 of the last Constitution as it relates to petroleum, Pastor Rouaix, Secretary of Fomento, who was a member of the constitutional convention at Querétaro and principally responsible for the adoption of this article, has replied officially to the effect that the said Constitution restored the absolute ownership of petroleum and other substances mentioned in Article 27 to the Mexican Nation and repealed all former laws to the contrary on the subject, although proprietors of oil lands may continue to enjoy possession, etc., until the laws shall be passed prescribing the manner in which effect will be given to the Constitution. He also holds that Article 27 cannot be objected to as retroactive because it merely restores the fundamental property rights of the Nation, which, without any right, one of its governments (literally governors) attempted to cede to private individuals.
This opinion would seem to indicate the intention of the Mexican Government to annul all private property rights to petroleum. First installment text translation will be forwarded next Wednesday.