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  4. Document 654

File No. 812.512/1976

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

No. 1024
Mexico , May 14, 1918 .

Sir: I have the honor to enclose herewith the text and translation of Circular No. 18 of May 8, 1918, issued by the Department of Hacienda and Public Credit, correcting Circular No. 15 relative to the payment in cash of the royalty tax prescribed in the petroleum law of February 19 last. A copy of Circular No. 15 was forwarded to the Department with my despatch No. 993 of May 6, 1918.

I have [etc.]

Henry P. Fletcher
[Enclosure—Translation]

Circular No. 18 of the Department of Hacienda, correcting Circular No. 15 of April 25, 1918 1

CIRCULAR NO. 18

It having been stated in Circular No. 15 of April 25 last, covering payment in cash of the tax on royalties stipulated in petroleum contracts, that for the purpose of deducting the cost of pipe-line transportation, a rate of 20 centavos per ton-kilometer would be taken, this being the rate fixed by the Department of Industry, Commerce, and Labor, whereas the rate should be 2 centavos per ton-kilometer, the amount really stipulated by the said Department; the taxpayers are, therefore, informed, as is also the tax office, that the rate is 2 centavos per ton-kilometer, and that their declarations should be computed on this basis.

The foregoing is communicated to you for your information and guidance.

Constitution and Reforms, Mexico, May 8, 1918.

Undersecretary, in Charge of the Department,
R. Nieto
[rubric]
  1. Diario Oficial, May 10, 1918.↩