611.127/394

The Secretary of State to the President of the Standard Oil Company of New Jersey (W. C. Teagle)

Sir: I have your letter of August 18th with reference to the proposed visit to Mexico of a Committee representing the American oil companies in connection with the recent tax decrees. After Under Secretary Fletcher’s conversation with you on the telephone, a telegram was dispatched to the Embassy along the general lines suggested in the first paragraph on page two of the letter of your Committee.71 With reference to the question of a loan which your Committee believes may be asked of it during its visit in Mexico, the Department understands from Mr. Lamont that the matter has [Page 457] already been discussed between your Committee and the bankers interested, and is inclined to agree with the suggestion that negotiations for a loan, if undertaken, should be entirely independent of your negotiations with respect to taxation.

I am [etc.]

Charles E. Hughes
  1. Refers to the paragraph which begins “On behalf of the companies at interest”.