812.6363/2467

The Under Secretary of State (Olds) to the British Ambassador (Howard)

My Dear Mr. Ambassador: In your informal letter of December 16, 1927, you said you would be glad to receive such further information as I might obtain regarding the result of the negotiations undertaken [Page 175]in New York between Mr. R. D. Hutchinson of the Aguila Company and representative of the Mexican Estates Company in Mexico, and Mr. Frank Feuille, attorney in New York for the Richmond Petroleum Company, with reference to the latter’s application for concessions covering lands in which the Mexican Estates Company is interested.

I have just received a letter from Mr. Feuille dated December 30, 1927, referring to this matter and stating in part as follows:

“The Mexican Estates Company was admitted to special membership in the Association on November 22nd last, and is now entitled to the benefits of the above mentioned agreement, provided the company has become a signatory thereof. I have no information on this last mentioned point.

“The Richmond Petroleum Company of Mexico is a subsidiary of the Standard Oil Company of California. It has not applied for a concession upon lands owned or claimed by the Mexican Estates Company. Mr. Clay T. Yerby acquired a petroleum lease on the Tonalapa lands in the State of Vera Cruz, through contract with a considerable majority of the common owners of the tract of land, in conformity with the laws of that state. Mr. Yerby has applied to the Mexican Government for a confirmation concession. He is not a member of the Association.

“After Mr. Yerby had acquired the contract on the Tonalapa lands he obtained employment from the Richmond Petroleum Company, which employment in no manner involved that contract. Since his employment by the Richmond Company the latter has taken a three year’s option from him on the Tonalapa lands. The option has not been exercised by the Richmond Company, but it is still effective.

“I learned from Mr. Robert D. Hutchinson, one of the representatives of the Mexican Estates Company, that negotiations are now being conducted with Mr. Yerby by the minority owners of the Tonalapa lands, including the Mexican Estates Company, for an adjustment of their interests.

“I am sending you this communication as a representative of the Standard Oil Company of California, under instructions from the Home Office of the Company in San Francisco. I will be pleased to furnish you any further information in this matter that you may desire.”

I am [etc.]

Robert E. Olds