The Secretary of State to the Chargé in Mexico (Schoenfeld)

No. 1485

Sir: The Department refers to your despatch 4831 of September 8, 1927,2 and previous correspondence, with reference to the complaint of Mr. B. A. Ingalsbee regarding the property owned by him and [Page 171]certain other American citizens and the exploration thereof by British interests.

In view of the desirability of avoiding so far as possible any appearance of controversy between British and American oil interests in Mexico at this time, the Department instead of instructing you to make representations to the Mexican Government with respect to this matter addressed an informal inquiry to the British Embassy at Washington with a view to obtaining such information as might be available from British sources. In an informal communication, dated October 20, 1927, the following information was submitted to the Department in response to its request:

[Here follows the text of the informal communication from the Commercial Counselor of the British Embassy, printed supra.]

The Department has no knowledge of the agreement between members of the Association of Oil Producers in Mexico covering the procedure in question, and it is making inquiry in the matter. In the meantime you may be able to ascertain from sources in Mexico whether such a procedure has in fact been agreed upon, and whether American companies have themselves taken action pursuant thereto.

I am [etc.]

For the Secretary of State:
Robert E. Olds
  1. Not printed.