Arizona republican., 1921-09-05
IF FIVE AMERICAN
 O|L COMP PAN|ES. IN TAMP P|C0 TO
 START AT ONCE
Immediate Movement of Oil from Mexico Will Follow Settlement of Tax Controversy
tRepubIIean A. p. Leased wireJ


 MEXICO CITY, Sept z-Immediate resumption of oil operations in the Tampico region by American petro- leum companies and payment of postponed taxes with the lifting of the government embargo on the com panies funds and oil in storage. will result in the agreement reached hy government officials and the beads of five American oil concerns, re- ported last night.
 There will be an immediate move ment of oil from Mexico and after minor details have been adjusted a settlement will be reached of all the great petroleum problems which have vexed the main government and American development companies for years
 The agreement reached in the con- ferences which terminated Saturday night has the sanction of President Obregon who has described it as a happy and satisfactory solution to all concerned" The American oil men who participated. asserted they were contented with results and were prepared to leave immediately for home.
 Conferences between the Mexican government and five great oil com panies lave been terminated" said
  the Treasury de la Huerta. The result has been satisfactory, with out damaging the interests of Mex ico. nor the international policy of Mexico and a decision favorable to both parties has been reached
 Ut has been agreed that on new regulations on charges for export taxation of oil. created by the de- cree, it will be arranged that pay aar.te T., l. 1. Payment will be made every three months and not monthly. There still remain few points to be discussed. but which the oil com panies have agreed to accept after studying certain information and data after their representatives have reached New York. When they will be arranged
 "The decree of May q. 1920. did not suffer any modification and the payment of taxes due in accordance with that decree will be made by the companies represented Monday Of next week. when they will renew operations can also affirm that the satisfactory result was in accord ance with instructions received from the president, to which I added, my approval
  urday noon that things were not moving smoothly at the treasury de- partment and there were many hur- ried conferences between Secretary de Ia Huerta and President Obregon- After a four hour conference. there was an adjournment until 6 o'clock The oil men then were closeted with the secretary nearly three hours
 After the oil men had left the sec retary admitted an agreement had been reached and that it lacked only the presidents signature. He left immediately for Chapultepec castle, and within an hour he was joined by the oil men. The formal announce ment was delayed until after mid night
 The oil men in casual conversation ! indicated they were pleased with the conference They were enthusiastic | in thier praise of Secretary at la Huerta. Article 27. which nationalizes oil deposits. did not enter into the discussion. they said. as this subject was considered purely diplomatic matter.
 The statement of President obre- ! gon. Senor de Ia Huerta and the oil men failed to give details of the tax agreement. other than that new ar rangements for payment had been made. It is understood. however. | mat the au NdloFeiH DdSis IAAtu NlAh ! the Mexican decree of June Is abrogated.
 President Obregon's statement ! said:
 q believe the arrangements made | will be highly advantageous to our country. They show the good will which has animated both sides. "The fact that work in the petro- | leum region will he resumed imme- | diatelv is indeed the cause for great satisfaction Ii will benefit the whole of the republic. Besides the precedent is esta blished that no matter what difficulties may arise on this question. they mny he able | of adjustment directly with the gov ernment.
 Reports say Tampico was the ] scene Saturday night of impromptu Continued on page 2