File No. 812.512/1987
The Ambassador in Mexico ( Fletcher) to the Secretary of State
Sir: Referring to my despatch No. 1044 of May 15, 1918, on the subject of the petroleum law of February 19 last, I have the honor to report that, at my request, Messrs. Garfield and Rhoades1 were received by President Carranza on the 22d and had what they reported as a very satisfactory talk with him on the subject of the petroleum decree. He referred them to Messrs. Pani and Nieto, [Page 723] with whom they have already had a conference which was also highly satisfactoy.
Mr. Garfield reports that he is very much encouraged by the trend of affairs and believes that, as a consequence of the united front presented by the oil industry and of our protest of April 2 last, the Mexican Government will eventually delete the objectionable features from the said decree.
President Carranza intimated to them that they should discuss the law as a tax measure rather than as an application of Article 27 of the Constitution.
I will keep the Department informed of the progress of Mr. Garfield’s negotiations.
I have [etc.]
- Attorneys for the owners of oil properties in Mexico.↩