831.6363/70
The Minister in Venezuela ( McGoodwin ) to the Secretary of State
[Received August 26.]
Sir: Referring to my No. 2,372 of May 27, 1921, reporting that assurances had been given me by General Juan Vicente Gómez that the Petroleum Law approved June 26, 1920, copy and translation of which accompanied the Legation’s No. 2,176 of October 10, 1920,7 would be changed to suit the requirements and suggestions of the American petroleum development companies, as set forth in memoranda handed to me by representatives of bona fide American [Page 940] companies and which were developed in conferences I had with them during March and April last, I have the honor to enclose herewith a copy of the Official Gazette of July 11, 1921, No. 14,414 containing the original text of a new Petroleum Law (Ley sobre Hidrocarburos y demás Minerales Combustibles) enacted by the. National Congress at its recent regular session and approved by the Provisional President June 22 [16], 1921 and (No. 2) a translation of the same.8
I have not yet had an opportunity to make a careful analysis of the improvements over the law of 1920, which it repeals, nor has any of the representatives now in Caracas of bona fide American companies but it is recognized by them that all of the modifications and reforms suggested have been incorporated in it. As indicating their approval of the new law, all of these American companies have taken the necessary steps to bring the operation of their properties, which were acquired under previous laws, especially that of 1918, under the operations of the law of 1921. These companies went on record at a conference held in the Legation early in April last as willing to accept a return to the law of 1918.
. . . . . . . . . . . . . .
I have [etc.]