812.6363/673: Telegram

The Secretary of State to the Consul at Tampico ( Dawson )

Your May 5, 6 P.M.

Department takes position that, under the applicable rules and principles of international law, American firms, citizens and corporations may pay customs duties and taxes to persons exercising de facto authority in Mexico, and, having made such payment, are free from further obligations in matter. Oil operators must decide for themselves as to whether they will pay taxes in advance or not. Standard Oil Company and representatives of other companies have been so advised.

Department suggests that local representatives of companies should request extension of time limit prescribed, in order that their principals [Page 163] in United States may have ample time to issue necessary instructions.