File No. 812.512/1959

The Ambassador in Mexico ( Fletcher) to the Secretary of State

No. 993

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.]

Henry P. Fletcher
[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 [Page 719] 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.


Undersecretary, in Charge of the Department,
R. Nieto
[rubric]
  1. Not printed.
  2. Diario Oficial, May 1, 1918.