File No. 812.63/128.
[Untitled]
Sir: I telegraphed you yesterday as per confirmation enclosed herewith, which I now beg to confirm.
I have discussed the subject matter of this telegram, as well as our previous communications with your Department, at some length with Mr. George C. Carothers, your Special Representative in Mexico.
Mr. Carothers has advised me that the de facto authorities of the Villa government have assured him repeatedly that the interests of no foreigner in Mexico would suffer as a result of the decree in question. However, notwithstanding the fact that the above assurances have been given, the fact remains that it is now their intention to [Page 920] enforce the provisions of this decree, which are very detrimental to every foreigner who has money invested in mineral property in the country.
We enclose herewith translation of blank form of exemption that may be granted to the owners of mining properties by the de facto authorities, upon presentation by the owners of such mining properties of a request, in which request, we are advised by the Minister of Finance, should be set forth the reasons for asking for the exemption, and if necessary evidence will be taken by the said Minister to establish the correctness of the contention made, and if this in his opinion is sufficient, the exemption in question will be granted for a period of not to exceed six months, at the expiration of which time the same process would have to be gone through with again.
The conditions provided for the operation of mining properties as set forth in the decree in question are such as to render them positively impossible to comply with, even during a normal state of affairs in Mexico, and the effects of the measure are such as to render every mining property in the Republic liable to forfeiture and will, if enforced, without question create a condition which would probably lead to international complications, which all most earnestly desire may be averted.
For your information I will state that a great number of the mining properties in the northern part of the Republic, which belonged to Mexican citizens, have already been confiscated by the de facto authorities, and that at least one mining property owned by foreigners, located at Naica, in the State of Chihuahua, has been confiscated and is now being operated. A smelting plant located at Santa Rosalia, in the State of Chihuahua, belonging to Mexican, French and English capitalists, has been confiscated and put into operation for the purpose of smelting the ores that are being extracted from the confiscated mines. Therefore you can readily understand that these facts, which are well known to the mining industry at large, create a feeling of uneasiness as to the security of their own property or investments in the country, and we now most urgently request that you take such steps as you deem appropriate to secure from the proper authorities of Mexico such assurances as can be brought about only by the repeal or indefinite suspension of the decree in question.
Yours very truly,