812.6363/2947: Telegram
The Chargé in Mexico (Boal) to the Secretary of State
[Received 11:25 p.m.]
184. Department’s 134, July 9, 5 p.m. I have just had a long and entirely informal talk with Beteta and as a result of this have decided not to deliver the letter which I read to Tanis48 over the telephone this morning. Beteta believes that the petroleum decree will not be promulgated immediately but may await settlement of the labor controversy between the petroleum companies and their workers. I have arranged that I will give him a very brief memorandum on the morning of July 12, simply pointing out that press reports in the United States have given the impression that the understanding in the settlement of the petroleum difficulties reached with Ambassador Morrow is about to be nullified by a new petroleum decree, and saying that the Embassy, in order to know how such reports might be dealt with would be grateful for information. Beteta will then see the President with a view to obtaining this information. In view of the enclosure to my despatch No. 4993, July 7,49 and the information already transmitted in my 179 of July 7 it would be useful if the Department could furnish the Embassy with its views as to the exact scope of the Morrow arrangement. It may be important to determine whether requirement [Page 648] of a more intensive degree of exploitation in confirmatory concessions under penalty of reversion of subsoil rights to the Government would be considered by the Department to be a breach of the Morrow arrangement.
Mail report follows.