File No. 812.512/1959
The Ambassador in Mexico (
Fletcher) to
the Secretary of State
No. 993
Mexico,
May 6, 1918.
Sir: Referring to the Embassy’s telegram
No. 1022 of May 2, 1 p.m.2 reporting that, with reference to Articles 3 and
5 of the petroleum law accompanying my despatch No. 815 of March 1,
the Department of Hacienda had issued a circular prescribing that
the royalty tax for March and April this year shall be paid in cash,
I have the honor to enclose herewith the text and translation of the
circular in reference.
I have [etc.]
[Enclosure—Translation]
Circular No. 15 of the Department of Hacienda,
relative to the payment of taxes on petroleum lands and
leases3
CIRCULAR NO. 15
In conformity with Article 5 of the tax law on petroleum lands
and petroleum leases, dated February 19 this year, this
Department has seen fit to
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rule that the tax on royalties to which
Article 3 of the said law refers, corresponding to the present
bimonthly period of March and April, shall be paid in cash by
those subject to the said tax, at the corresponding tax office,
it being understood that if the royalty is payable in kind, it
shall be valued for the purpose of making payment in cash, at
the rate of $13.50 (pesos) per ton, in accordance with the
tariff contained in Circular 10 of March 21 last, issued by this
Department. For the purpose of computing the reduction for
pipe-line transportation, a rate of 20ȼ per ton-kilometer shall
be used, this being the rate fixed by the Department of
Industry, Commerce and Labor.
The foregoing is communicated to you for your information and
appropriate action.
Constitution and Reforms.
Mexico, April 25,
1918.
Undersecretary, in Charge of the Department,
R. Nieto
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