File No. 812.512/1911
The Ambassador in Mexico ( Fletcher) to the Secretary of State
890. Your 895, March 19, noon. Please advise me what attitude American oil companies will take with regard to payment of the new petroleum taxes, and the steps, if any, they contemplate taking to test its legality. I am informed that Mexican Government has done nothing as yet to put it into force, and that a new circular is in preparation relating to its enforcement.
My idea is that American companies should exhaust all legal remedies they may have before the matter is brought to the attention of the Mexican Government officially by the United States Government. In this case, I should be informed who the counsel for the American companies are, and should be kept in close touch with the proceedings. Or does the Department wish me to lay protest before Mexican Government immediately, without waiting further action on the part of Mexican officials or the result of such legal proceedings as American companies may institute?