812.5200/1
The Chargé in Mexico (
Schoenfeld
) to
the Secretary of State
Mexico
,
October 2,
1925
.
[Received October 9.]
No. 1178
Sir: Referring to recent correspondence18 regarding the
announcement made by the President of the Republic in his message to
Congress on September 1, last, of the forthcoming introduction of a bill
regulating the ownership of property in this country by foreigners, I
have the honor now to enclose a clipping from today’s edition of the
newspaper Excelsior containing the full text of
the President’s message to Congress under date of September 30, last,
covering the proposed bill, together with a translation thereof.19
. . . . . . .
[Page 522]
[Enclosure—Translation20]
Proposed Alien Land Bill to Regulate Section 1
of Article 27 of the Mexican Constitution
21
-
Article 1. In order that a foreigner
may form part of a Mexican corporation which has acquired, or
may acquire, lands or rights to waters and their accessions in
the territory of the Republic, outside the prohibited zone, as
stipulated in the final part of section 1 of article 27 of the
Constitution, he must comply with the provisions of section 1,
to wit: To agree before the Department of Foreign Affairs to be
considered a national in respect to the part of the property
which is his share in the corporation, and not to invoke in
respect to the same the protection of his Government under
penalty, in case of breach, of forfeiture to the Nation of the
properties which he has acquired, or may acquire, as a
shareholder in the corporation of which he may form a
part.
-
Article 2. This provision must be
complied with by any foreigner who wishes to acquire shares or
participation of any kind in a Mexican corporation which
possesses, or may possess, real estate, rights to waters and
their accessions within national territory.
-
Article 3. No foreigner may form
part of a Mexican corporation which possesses, or may possess,
real property, rights to waters and their accessions in a zone
of 100 kilometers along the frontiers and 50 kilometers along
the seacoast.
-
Article 4. Agreements and contracts
entered into in violation of the provisions of the three
articles just preceding, shall be null and void. No agreement
for the alienation of property may be considered retroactively
perfect until the renouncement stipulated in article 1 of this
law shall have been made.
-
Article 5. Any corporation in which
one or more foreigners may have, in any form, an interest
greater than 50 percent of the total shares of the corporation,
will not enjoy the privileges which the law grants to Mexican
corporations.
-
Article 6. Those foreigners who may
have acquired, in the prohibited zones, any kind of real
property, rights to waters and their accessions, as shareholders
in a Mexican corporation, before this law came into force, must
divest themselves thereof within 3 years from the time this law
came into force, unless they acquire Mexican nationality in
accordance with the existing legal provisions. Foreigners
holding any shares in corporations possessing real property,
rights to waters and their accessions, outside of the prohibited
zone, must make a declaration before the Department of Foreign
Affairs [Page 523] within 6
months after the date of the promulgation of this law, in regard
to their participation in such corporation, with the
understanding, that if they do not do so, the acquisition will
be considered as made subsequent to the promulgation of this
law.
-
Article 7. The Executive is
empowered to regulate the provisions of this law.
-
Article 8. The present law shall
take effect from the date of its promulgation.
