The Minister in Costa Rica (Davis) to the Secretary of State
[Received May 17—12:15 a.m.]
23. Minister of Public Works yesterday addressed a note to H. G. Wilson, local manager of the Costa Rica Oil Corporation claiming right to cancel contract for the following reasons:
- That the company failed to fulfill within the time provisions of paragraphs (a) and (i) of article I relative to exploration and exploitation, and the extension granted corporation July 19th, 1919, is not available because it was granted by the Tinoco Government whose acts have been annulled.
- That the contract is in possession of the Sinclair Central American Oil Corporation in violation of article XIII.
- That the correspondence between Government and company (see enclosures with despatches numbers 13, November 13th [10th], 1920.21 26 November 30th, 1920,22 106 June 3rd, 1921,22 120 June 15th, 1921.22 267 December 22nd, 192122 and 274 January 4th, 192223) constitutes [Page 1000] hearing provided for in the contract but that further hearing is granted and must be held within six days from May 17th. Wilson left for Havana the day before this note was delivered to his office. He cannot return to San José before the end of six days. Government is planning to cancel contract and I have just been informed confidentially that the declaration of caducity has been drawn up.