The Chargé in Mexico (Summerlin) to the Acting Secretary of State

No. 2063

Sir: With reference to the Department’s telegrams No. 1921 of March 18, 6 P.M. and No. 1969 of April 16, 5 P.M. instructing the Embassy to protest against the circular issued by the Department of Hacienda on February 19, 1919, in regard to the proposed collection of royalties from petroleum companies and against the possibility that denounced concessions might be granted to third persons, I have the honor to forward herewith copy and translation of a note received from the Foreign Office dated May 29, 1919, the substance of which was sent the Department in the Embassy’s telegram No. 3006 June 2, 3 P.M.79

I have [etc.]

George T. Summerlin

The Mexican Acting Secretary of State for Foreign Affairs (Garza Pérez) to the American Chargé (Summerlin)

No. 1691

Mr. Chargé d’affaires: I have the honor to acknowledge the receipt of your notes dated March 20 and April 21 of the current year which you were good enough to send this Department, in accordance with instructions from your Government, protesting against the Circular issued by the Department of Hacienda on the nineteenth of February, last, in connection with the collection of royalties from the petroleum companies and against the possibility that concessions might be granted to third persons who have denounced petroleum properties rented by American companies.

[Page 599]

The Government of Mexico sincerely deplores the fact that the American companies have ill advisedly failed to comply with the laws which the former issued on the exploitation of petroleum, since they could have done so under protest and with the reservations that they might have considered compatible with their interests, and could have appeared before the proper authorities, requesting a detailed study of the question so that it might be decided in justice and according to law.

Consequently, if the situation of the petroleum companies is complicated by the denouncements made by third persons, the companies mentioned are doubtless the only ones to blame, since it must be evident to your clear judgement that the protests of a foreign nation cannot suspend the effects of the laws issued by the Government of another nation.

I renew [etc.]

E. Garza Pérez
  1. Not printed.