The Mexican Embassy to the Department of State

[A copy of the following telegram from the Mexican Acting Secretary of State for Foreign Affairs to the Mexican Ambassador, was received at the Department on August 11.]

I transcribe to you herewith the Circular issued by the Department of Industry, Commerce and Labor under date of August first–1919:

“Whereas a number of Companies and Individuals interested in the petroleum industry have failed to understand the liberal spirit animating the Federal Executive in issuing the Decrees regarding taxes on petroleum lands and leases, and the advantage of exhibiting [Page 607] the statements required in the Decree of July 31, 1918,91 enacted to protect the rights acquired prior to May 1st, 1917, and therefore, failed to present said statements. That as a consequence of the failure to present the statements required, the interested parties were deprived by Article 4th of the Decree of August 12th, 1918,92 of the right to perform new works of petroleum exploration and exploitation on their own lands as well as on lands leased by them; and, therefore, they are not able to fulfill their previously contracted commercial obligations, as it has been repeatedly communicated by them to the Department of Industry, Commerce and Labor. As the constant tendency of the Government has been to promote the development of the National Petroleum Industry, the President of the Republic has ordered that the owners or concessionaires of rights of exploitation who failed to present the statements prescribed in the Decree of July 31st, 1918 regarding taxes on petroleum lands and petroleum leases, be allowed to undertake works of petroleum exploration and exploitation, provided that, upon the application for the necessary permits from the Federal Executive, said owners and concessionaires bind themselves to accept the precepts of the Petroleum Organic Law, which may be issued by the Nacional Congress. The permits granted by this Department in compliance with the foregoing order, will have a provisional character and must be revalidated in accordance with the Petroleum Organic Law when it is enacted. To obtain said permits for petroleum exploration and exploitation, the applicants are required to exhibit before the Department of Industry, Commerce and Labor, the documents establishing the possession of the lands where said permits are to be used.”

The Acting Secretary of the Department of Foreign Relations.

Diego Fernandez