File No. 812.512/1991

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

No. 1092

Sir: In continuation of my despatch No. 1078 of May 29 last, I have the honor to report that Messrs. Garfield and Rhoades expect to leave Mexico for New York and Washington to-morrow morning. Mr. Garfield reports that the negotiations with reference to the petroleum decree of February 19 are proceeding satisfactorily, but that certain data with reference to production, etc., and which can only be procured in New York and Tampico, are necessary before further progress can be made. He states that he will call at the Department and report personally as to the conferences which he has had here.

Messrs. Garfield and Rhoades seem very optimistic, but from a conversation which I had with Mr. Nieto yesterday, I am inclined to believe that the Mexican Government will insist upon its interpretation of Article 27, and upon its ownership of subsoil petroleum deposits thereunder.

I have [etc.]

Henry P. Fletcher