File No. 812.512/1885
The Ambassador in Mexico ( Fletcher) to the Secretary of State
[Telegram]
Mexico,
February 25, 1918, 2 p.m.
806. The Mexican Government has issued a decree fixing taxes as follows on petroleum lands:
- First, on petroleum lands being developed by lessees under contracts made prior to May 1, 1917: (?) 10 per cent of the annual rental up to 5 pesos per hectare; 20 per cent of the annual rental from 5 pesos to 10 pesos per hectare; 50 per cent of the annual rentals above 10 pesos per hectare and 5 per cent of all royalties paid by the lessee to the lessor.
- Second, on oil lands being developed by the owners of the land: 5 pesos per hectare annually, and 5 per cent of the products annually.
- Third, oil lands for which no rental is being paid are taxed 5 pesos per hectare annually, and oil land on which no royalties are being paid are taxed 5 per cent of the products annually.
Fletcher