The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-10
Orgy Of Haste in Dispos-
ing of Grants Infringing
on American Citizens.
80 TO 35 IN SINGLE DAY
CarranZa DEGREES Used in
Aiding Invaders of Pc
tr0leum Territory.
U. S. PROTEST EXPECTED
Dacnrtiaro Mnvionp A ..o-t
U. S. PROTEST EXPECTED
Pesquiera, Mexican Agent,
Says Acts May Send America
and England to War.
Special Despatch to THE NEw YORK HERALp.
New York Herald Bureau
MashinatOn. ID. C.. Dec. 8.

washington. ID. g.. Dec. 81.
British oil interests have invaded
Mexican petroleum fields In their ef-
forts to acquire world domination of
oil properties and are infringing on
American oil rights there under the
provisions of the conf1scatory Car
rama decrees.
Information to this effect was OBJ
tained by the State Department to-
day. together with recital Of an orgy
of concession granting during the last
days of the De In Huerta regime. This
orgy is believed here to explain the
feverish anxiety of the Mexican Gov
ernment officials to obtain recognition
for the Mexican Provisional Govern
ment.
The granting Of concessions by De
la Huerta's Government assumed such
thirty-five concessions were granted
in single day. The process was con-
| tinued to within a few minutes OF
the time that De la Huerta gave over
The granting of oil concessions to
British interests is regarded as espe-
cially serious In view Of recent protest
by the United States relative TO the
British in Mesopotamia. In the case
! of Mesopotamia the United States pro-
tested against exclusion from a field
wholly conjectural. In Mexico the
gramme indicates an intention of in
vading American oil fields with the
apparent hope OF obtaining Govern
ment approval Of Investments.
Two British oil companies. the Asuiia
and the Corona. subsidiaries of the
British controlled during the war. are
implicated In what is regarded as 2 new
attack on American rights.
Vast Concessions Dispersed.
These companies have purchased vast
oil concessions directly from the DE La
Huerra Government and taken up oihes
concessions distributed by the Mexican
Provisional Government to prominent
officials and favorites of the Admins
tration. Among these Is Gen. Jacintc
Trevino. Secretary of Labor, Commerce
and Industry of the De la Huerta Cab
met
The concession granting which char
acterizcd the end OF the De La Huerta
Administration went 10 such an extent
that concessions have been granted In
every State except the States of Mexico
and Aguas Calientes. According to
Mexico City newspapers received here
to-day. many OF these favored conces-
sion holders promptly moved to sell their
rights regardless OF price and of pur-
chaser.
Probably the most remarkable conces-
sion granted ls one said to have been
signed late on the night OF November
80. during the last moments Of the DE
La Euerta administration. The conces-
sion was granted to A Il. Adam and
gives him the right to extract from what
Is known as the Federal Zone regions
any amount of petroleum up to approxi-
mately 400.00O.0o0 barrels (60.000.00
tons) of oil year. The value OF this
concession will be realized when II Is re-
called that Mexico exported this year
less than 140. 100000 barrels.
mostly to oil cover objects OF every con-
ceivabie value and in every part of the
country. In view OF the anxiety indi-
Gated to distribute these concessions be-
fore Gen. Obregon took office, IL ls as
sumed the new administration Is not TO
be- relied on to countenance this general
distribution OF the country's wealth.
The granting of oil concessions
which Is regarded az an attack on
American rights Is made on the basis
OF tho CarranEa decree issued March
II. 1890. extending the Federal zone
regions. The old Mexican law pro-
vided that Federal zone for towpath
purposes should be reserved on either
Side or navigable streams.
Can Drill Almost Anywhere.
The Cnrransa decree EXTENDED these
zones all over the territory contiguous
to Tnmpico and makes the system ap-
plicable to every stream whether nav
fgable or not. A Federal zone ls
claimed even where only dry bed
remains Indicating that some time a
stream existed there. The oil fields
In thiH region consist Of areas known
as pools. These pools are cut up
with small streams. on either side of
which a Federal zone IL established
BY tho Carranza decree. The conces-
slons granted make II possible for the
holder to drill wells In practically
every part OF American owned prop
erty.
Protests have becn made repeatedly
by the state Department against grant,
Ing concessions OF this kind. openly vio-
iatlng rights of American holders In
view OF It's past attitude II IL clear that
the State Department will oppose the
validity OF the CONCESSIONS granted nv
the De La Huerta Government. There
In considerable official curiosity here
TO know II the Mexican situation Is not
part of the programme mapped out at
the San Reno conference by which the
British and, In lesser degree, the French
hope to control petroleum sources and
supplies. Roberto V. Pesquiera, until
recently confidential Mexican agent TO
the United States, Is quoted In the Mex
lean papers as saying the dispute over
oil will lead to war between the United
EpnIend