822.6363/16: Telegram

The Minister in Ecuador (Hartman) to the Secretary of State

Law passed Congress and approved by the President declares that petroleum mines not yet adjudicated belong exclusively to the State and private parties may not denounce them pending the enactment of a new law relating thereto. If payment of patents shall not be made within the time fixed by mineral code the right acquired will ipso facto be void. Right of holder of patents will cease ipso facto unless exploitation of mines be commenced within two years and pending enactment of new law rights previously acquired cannot be sold or transferred. Annual patent fee of not less than 5 pounds [percent?] nor more than 10 per cent of gross production will be charged.

I am informed that law is similar to Colombian law. The bill was considered and passed in secret session October 18 and first knowledge obtained in the newspapers of October 27th.

Hartman