812.6363/629

The Association of Mexican Producers to the Secretary of State

Sir: In the absence from the city of Mr. F. N. Watriss, the authorized representative of the Association of Mexican Producers, 1 beg to transmit to the Department copies of a telegram from President Carranza of Mexico, dated January 20th, 1920, and of the Association’s reply thereto, dated January 22, 1920, both in Spanish and in English.

The Department will understand that the telegram from Mr. Carranza is in response to the Association’s telegram of January 14th, copy of which has been previously transmitted to the Department.36 It will further be appreciated that what was asked and what is apparently to be accorded is temporary relief only, and that the basic question of the recognition of American rights and titles remains unsolved.

Yours very truly,

Association of Mexican Producers
By
C. O. Swain
, Vice-Chairman
[Page 204]
[Enclosure 1—Telegram—Translation37]

President Carranza to the Association of Mexican Producers

Under date of the 17th of this month I gave to the Secretary of Industry, Commerce, and Labor the following resolution, which I repeat to you in answer to your cable of the 14th.

The petroleum companies having manifested in an express manner that they are disposed to comply with all of the legal requirements provided they do not imply the violation of their rights previously acquired;

Having manifested equally that they are disposed to accept provisional permits for drilling wells valid until the Congress of the Union issues the organic law of the 27th Constitutional article, providing that the acceptance or use of said permits does not attack or prejudice the rights of the petroleum companies;

Having manifested equally that they will not claim from the fact of receiving the said permits to acquire any new right, nor that the Mexican Government by the issuing of said permits abandons any right or principle that it might wish to defend;

The President of the Republic has seen fit to decide that provisional permits shall be conceded to the oil companies that may petition for the drilling of wells upon the following bases:

The permits will be valid only until the Congress of the Union issues the organic law of the Constitutional article 27. The permits that may be granted in the premises may cover all the wells that have been commenced or drilled since the 1st of May, 1917; also all the wells that may have been finished, as well as those that now may be in the process of drilling.

The respective petitions for permits to drill, which the petroleum companies may present, must contain the statement that the permits will not mean the acquisition of any new right nor the claim that the Mexican Government by the fact of issuing said permits abandons any right or legal principle which it may wish to sustain.

The petitions will also contain an agreement that the permits requested will be valid only until the Congress of the Union enacts the organic law of the Constitutional article 27 relating to petroleum, when the interested parties must comply with the provisions of said law or in the contrary case the provisional permits will lapse. It is understood not to have prejudiced in any manner or in any sense the different questions that are now being discussed before the judicial power of the federation in the amparo suits, or the discussion before the federal tribunals or the ordinary courts relating to the application of article 27 and of the different legal decrees on the subject of petroleum issued by the executive power. Nor will the discussion of the petroleum law now pending before Congress be prejudiced in any way.

Respectfully,

Venustiano Carranza
[Page 205]
[Enclosure 2—Telegram—Translation]

The Association of Mexican Producers to President Carranza

The petroleum producers have received your Excellency’s telegram dated January 20th and are appreciative of your prompt action in granting them the temporary relief requested (stop) They will accordingly instruct their representatives to proceed at once to petition for permits along the lines indicated in your telegram.

(Signed by the forty-six companies who signed telegram to Carranza dated Jan. 14, 1920).

  1. See supra.
  2. File translation revised.