CIRCULAR OF MAY 23, 1917. IN REGARD TO INFALSIFICABLE TAX ESTABLISHED BY DECREE OF MARCH 29, 1917. The Department of Finance, under instructions from the President, hereby notifies all interested parties: That the decree of March 29th last creating an additional tax of one peso Infalsificable on all imports and exports, as well as on the production of petroleum and metals, is not repealed, but shall continue in force, since the said additional tax in no way affects direct taxes legally levied by laws specifically referring to each executive department, payable exclusively in national gold. Wherefore, all persons affected by this additional tax, among whom are the oil companies which pay taxes under the decree of April 13, 1917, shall continue paying one peso Infalsificable additional for each peso national gold to be paid by way of taxes. Mexico City, May 23, 1917, (Signed) O. MADRAZO, Chief Clerk, CHRONOLOGY OF EVENTS. Refer NOTE. -These historical data were taken from the notes exchanged (Italics indicate assurances of Mexican Government.) June 11, 1915. Oct. 7, 1915. Oct. 19, 1915. Jan. 19, 1916. Jan. 21, 1916. Jan. 26, 1916. Aug. 10, 1916. Aug. 15, 1916. Carranza's Proclamation. "First, the Constitutionalist government shall afford to foreigners residing in Mexico all the guaranties to which they are entitled . . . and shall amply protect their lives, their freedom and the enjoyment of their rights of property.” Note from Ambassador Designate Arredondo to Robert Lansing, Secretary of State, giving the following assurance: "The Government he (Venustiano Carranza) represents in its capacity of a political entity, conscious of its international obligations . . . has afforded guaranties to the nationals and has done likewise to foreigners, and shall continue to see that their lives and property are respected in accordance with the practices established by civilized nations." De facto recognition based on above, among other assurances, accorded to Carranza faction by the United States. State Department to Silliman to protest against possible effects of nationalization of petroleum. Assurance of Mexican Government that no such decree was contemplated. Renewed assurance of First Chief Carranza to same effect. Communication from Secretary of State Lansing to the United States Senate informing the Senate of Carranza's proclamation of June 11, 1915, and of receipt of Arredondo's letter of Oct. 7, 1915, in reply to request for information as to assurances precedent and leading to de facto recognition. Ruling by First Chief Carranza requiring foreign stockholders of new companies to waive diplomatic protection. Decree extending same requirement to aliens acquiring real property. Protest of State Department against both measures. Renewed protest of State Department against decrees of State Department protest against Articles 27 and 33, as submitted to Constitutional Convention. Pages 441, 445. Mexican Minister of Foreign Affairs assured Fletcher that a constitutional article would prevent confiscation. Thereupon Fletcher presented his credentials. Mexican Constitution declaring oil deposits to belong to Mexican nation becomes effective. Fletcher cabled Department of State that Carranza assures United States that no legislation of his government would "absorb " oil or mining properties being developed by Americans in Mexico. Protest by United States against refusal by Mexican Government to grant drilling permits to American companies. Reply by Mexican Government demanding that companies waive nationality. Decree requiring "manifests" and payment of rentals and royalties. United States note to Mexico, protesting against decree of February 19th. Renewed protest by United States against decree of February 19, 1918, as threatening confiscation. Decree extending time for "manifests" to July 31st. Decree based on that of February 19th, further extending to August 15th date for presentation of “manifests." Page 448. Decree regulating decree of July 31st. Page 450. Attention of Mexican Government called to fact that its note of April 2 is still unanswered. Page 450. Presentation of request by American Government for extension of time to present "manifests." Protest of April 2nd renewed. Decree based on that of July 31, 1918, issued. Page 450. Mexican Government refused request of American Government for extension. Mexico's reply to United States' note of April 2. Executive Bill "regulating" Article 27 presented to Mexican Congress. United States rejoinder to Mexican reply of August 17th. Note of American Government to Mexican Government that decrees, if enacted into law or confirmed by Congress, would meet same protest as existed against them as Executive decrees. Decrees confirmed as laws by Mexican Congress. United States protests against collection of royalties. Circular of Mexican Government ordering confiscation of wells and destruction of work of drilling permits have not been obtained. United States protests against granting rights in Americanowned or leased oilfields in Mexico to third persons under "denouncement," as also to issuance of "titles to, or rights in, lands legally held by American citizens." Reply of Mexican Government to notes stating American companies should have "manifested" under protest to save properties from "denouncement." Instructions by United States Government to rejoin to above, telling Mexican Government it itself had stated in reply to “Amparos" of oil companies that protest was nugatory and that the act of acquiescence in a law estops the plaintiff from questioning its validity. "The United States cannot admit that American companies are in any way blamable" for the situation complained of. Instructions to. Summerlin to protest against refusal of drilling permits or stoppage of work on properties, owned by American companies, as acquiescence in permit regulations would be equivalent to admission of ownership of oil deposits in the Mexican nation. Circular No. 9, requiring companies to accept petroleum legislation in advance before being granted drilling permits. Instructions sent to Summerlin to inform the Mexican Government that the United States objects to application of terms of Decrees of January 7, 1915, and March 20, 1919, which provide for confiscation of wells drilled without permits. Stoppage by Mexican federal military forces of all wells being drilled by American companies, which had, in harmony with the State Department's attitude, and with its knowledge, refused to acquiesce in confiscation of their properties, Refusal, by order of President Carranza, to permit American companies to take oil from wells already drilled without permit. Petroleum bill (see Nov. 22, 1918) passed by Mexican Senate (XXVIIIth Congress). Circular granting provisional drilling permits without relinquishment of rights by oil companies or abandonment of Mexican Government's position. Executive Order on Federal Zone. Page 459. Instruction to Chargé Summerlin to protest against continued "denouncements." Instruction to Chargé Summerlin to protest against Federal Zone Order. Instruction to Chargé Summerlin to protest against issuance of certain titles or patents to American-owned properties. COSTA RICA. CONTENTS. Page. Petroleum mines__. 492 Right to denounce-Application of constitution-Duties and immunities of denouncers__. 492 Resolution as to Pinto-Greulich contract_ 496 496 PETROLEUM MINES. RIGHT TO DENOUNCE-APPLICATION OF CONSTITUTION-DUTIES AND IM MUNITIES OF DENOUNCERS. RICARDO JIMENEZ, CONSTITUTIONAL PRESIDENT OF THE REPUBLIC OF COSTA RICA. CONSIDERING: I. That the interpretation of Article 57 of the Mining Laws allows the right to denounce petroleum mines. II. That the law of the 25th November, 1913, which annulled the application of said Article to petroleum mines, recognized the legality of rights acquired by the denouncers previous to the promulgation of said law. III. That, although in the said Article 57 it was stated that provision would have to be made for the taking over and working of the petroleum mines, no especial laws had been provided for the case. IV. That as the persons who have existing rights feel themselves seriously affected by lack of exact regulations, it is necessary to decide definitely what application shall be made of Clause 27 of Article 102 of the Constitution. DECREES. ARTICLE I. Fixes as the superficial measure of a petroleum mine holding a square of 2,000 meters a side. ARTICLE II. The denouncers of petroleum deposits or springs of which they have obtained possession in accordance with the law, in the exploitation of this substance, enjoy the following immunity from taxation: (a) To export free of all tax the natural products, refined or worked, coming from the exploitation; (b) To import free of duty machines for refining petroleum and for working every class of products which have crude petroleum as a base, the necessary |