File No. 812.512/1977
The Ambassador in Mexico ( Fletcher) to the Secretary of State
Sir: Confirming my telegram of yesterday’s date on the subject of the petroleum decree of February last, I have the honor to report that in my last interview with the Minister for Foreign Affairs he informed me that the said decree had been the subject of much discussion in recent meetings of the Cabinet; that he had opposed it from the beginning and that the President had a few days ago referred it to a committee composed of himself, Mr. Pani, Secretary of Commerce and Labor, Mr. Berlanga, Secretary of Government, and Mr. Nieto, Subsecretary of Finance, for further study, and that he hoped some reforms and amendments would result. I referred to my note of protest against the decree and asked him how it was regarded, etc. He said he had sent it on to Mr. Pani as the father of the law and was awaiting his observations upon it before replying. He gave me the impression that personally he was still opposed to the decree and hoped to see the petroleum question settled along the lines of his own proposed law—the so-called Aguilar project—which he considered more equitable and fair to all concerned.
Messrs. Garfield and Rhoades called on me to-day and informed me that they have been appointed to represent all the American oil companies, who intended to act as a unit, and that the Department is familiar with their plans. I mentioned the matter to President Carranza to-day and arranged that he will give them an audience immediately.
I believe this matter will eventually be adjusted to the satisfaction of all concerned but it will take time and patience.
I have [etc.]