812.6363/2305: Telegram

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


264. Embassy’s despatch No. 4338, June 25. Embassy has been informed that several of the oil companies which had intended to drill on pre-Constitutional lands without permits received instructions here on July 11 not to proceed with this program for the present. I understand that the following companies are among those which received such instructions: the British-owned El Aguila, the American-owned Transcontinental and Huasteca, and probably Cortez Aguada, a subsidiary of the Atlantic Refining Company. Information regarding the reasons for this reversal of the original intention of the companies is not available in petroleum circles here.