File No. 812.512/2219

The Ambassador in Mexico ( Fletcher) to the Secretary of State

No. 1612

Sir: I have the honor to report that, as the Department will have seen from the telegrams passing through the Department, the petroleum negotiations being carried on here between Messrs. Garfield and Rhoades, representing the American oil companies, and the Mexican Government are proceeding under favorable conditions, and there is a fair prospect that a solution satisfactory to all concerned will be reached. While I have kept in close touch with the situation I have not appeared in any way in the negotiations further than to point out to President Carranza in my interview with him on my return to Mexico the beneficial effect a satisfactory solution of this difficulty would have. The proposed new law is almost ready for submission to Congress.

The Department will be kept fully informed by telegraph.

I have [etc.]

Henry P. Fletcher