The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-01-29
SETTLEMENT OF
CONTROVERSY
Recent Decree of Mexican
President Paves Way for
an Amicable Agree
ment.
REGARDING OIL WELLS
Leading Cabinet Member Says Too
Many Complaints Have Been
Made Diplomatic
Issues.
REGARDING OIL WELLS
[By Ralph H. Turner, United Press
Staff Correspondent

StdA4 Correspondence
MEXICO CITY, Jan. 28.--The re-.
cent decree of President Carranza,
authorizing the granting of provi-
sional drilling permits to foreign Oil
companies "paves the way to a COM
plete and amicable settlement of the
oil controversy between Mexico and
the United States in belief of Louis
Cabrera, leading member Of the Mexi-
can cabinet. ..-...
In an exclusive interview with the
United Press tonight Cabrera, who,
as minister OF the treasury Is second
probably only TO the president in in
fluence in Mexican affairs declared
he was confident a satisfactory
settlement is possible"
The oil controversy" Cabrera
said, probably has been the greatest
point at issue between Mexico and
the United States.
Mexico will insist upon the prin-
Eciple of national ownership of sub.
surface rights, but II the oil men will
agree to this principle then they can
get together with, us and discuss its
application with regard to vested In
terests," Cabrera said.
I'VE are ready to meet the oil
companies half way and talk things
over frankly, but the oil men must
show the same willingness" he con-
tinued.
There has been too much disposi-
tion on the part of the oil companies,
as well as 9th ers Interested in Mex
leo, to make every complaint an in
ternational diplomatic issue, taking
everything to the Ameriean state de-
partment and urging representations
when frequently direct dealings would
solve the difficulties and avert the
so-called critical situations
81 think now, however, we have
demonstrated we are not adverse to
Cancellation which should result in
smoothing out the oil mems tempers,
paving the way for an eventual agree
ncnt on both sides"
Cabrera explained that naturally
much depended on the final form of
the pending oil law and the enforce
ment of article 27 Of the Mexican
constitution, but he said he would
promise that Mexico will protect
vested foreign interests.
Il must preface this opinion, how
ever, by stating Mexico will maintain
the principle Of naturalization, the
minister explained, "and OF course
that Is open to different inteIpreta-
tions I hold to the fallacy OF con-
tenticn that. the owner OF surface
rights also owns the riches of the
sub-soil." o.. 81 ,,.
Asked for his definition of vested
interests, Cabrera admitted there was
considerable difference between the
governments definition and that OF
the. oil companies. The companies,
he said, often regard their pros
pects," to which their titles in many
cases are vague, as vested
The minister said, however, that
no would make the following classi-
fication: e@ ''
First-Flowing wells brought in be-
fore May /, 1917, upon which rights
will be recognized as perpetual, and
protected as such
Second-Lands acquired in the fee
period, the term thereof being sub
iect to the new oil law.
Third-.Rental lands upon which
lease holders also shall receive pref
erence, but for shorter period, prob
ably two years
Fourth--Lands held under options
limiting period of development to one
year. .-..E..