The New York herald., 1920-01-22

CARRANZA CABLES PERMISSION
TO46OIL COMP ANIES TO RENEW
DRILLING IN MEXICAN FIELDS

will not claim from the fact Of receiving
the said permits to acquire any new right,
nor that the Mexican government by tho
said permits to acquire any right, or
principle that it might wish to defend.
"The President OF the republic has
seen fit to decide that provisional per-
mits be conceded to the oil companies
that may petition for the drilling OF wells
upon the following basis:--
Covers Wells Being Drilled.
"The permits will be valid only until the
Congress of the Union issues the organic
law of the constitutional article n. The
permits that may be granted in the prem
ises may cover all the wells that have been
commenced or drilled since the first or
May. 1917: also all the wells that may have
been finished, as we'll as those that now
may be in process of drilling.
THE respective petitions for permits to
drill which the petroleum companies may
present must contain the statement that
the permits will not mean the acquisition
of any new right nor the claim that the
Mexican government by the fact of issuing
said permits abandons any right or legal
principle which 1t may wish TO sustain.
THE petitions will also contain an agree
ment that the permits requested will be
valid only until the Congress Of the Union
enacts the organic law Of the constitutional
article u, relating to petroleum. when the
interested parties must comply with the
provisions Of said law or in the contrary
case the provisional permits will lapse. IT
Is understood not to have prejudiced in any
manner or in any sense the different ques-
tions that are now being discussed before
the judicial power Of the federation in the
amparo suits, nor the discussion before the
federal tribunals of the general jurisdic-
ton relating to the application of article
Ia and of the different legal DEGREES on tho
subject Of petroleum issued by the execu-
tive power.
Nor will the discussion Of petroleum
law now pending before Congress be preju-.
diced In any way.
"Respectifully, Venustiano Carranza."
VIII Begin Operations.
In reply the Association of Oil Producers
in Mexico despatched the following ac-
acknowled gment yesterday indicating their
purpose of taking immediate advantage
of the concession:-
His Excelency, Venustiano Carranza,
National Palace. President Of Republic
of Mexico, Mexico City,
1.-The petroleum producers whose names
were signed to telegram to you dated jan
uary il have received your teegraphic
reply dated January 20 and are appreci-
ative of Your Excelency's prompt action
in granting them the temporary relief
which they requested. They will accord
ingy instruct their representatives to
proceed in the matter of petitions for
permits along the lines indicated in your
telegram"
Besides the oil companies mentioned in
the cablegram of President Carranza the
members OF the Association of Oil Pro-
ducers embraces in its membership the
Mexican Eagle Company, the Penn-Mex
Fuel Company, the Standard Oil of New
Jersey. through it's subsidiary. the Trans
continental Petroleum Company; the At
lantic Refining and Mexican Gulf
American oil lands in Mexico are esti-
mated to have value Of 81, 900, 900 600.