New-York tribune., 1922-08-11
Hughes Says
Mexico Fails
To Meet Issue
Recognition Bars Are Still
Up, Secretary Asserts i'm
Interpretation of Five
Recent Oil Judgments
Holds Congress Must Act
DEGREES Cover Only One
Class of American Land
Holdings, Says Secretary

From The Tribunc's Washington Bareaa
WASHINGTON, Aug. 10.-The re-
cent decisions Of the Mexican Supreme
Court affecting leases of OIL lands By
American citizens were officially in
ment as only partly meeting the de-
sires of this government that the
0nregon regime remove the barrier to
ultimate recognition by the United
States.
A statement issued BY the depart
rnent points out that the decisions are
acceptable as far as they go. but that
there still remain other cases invoiv-
ing american holdings Of Mexican land
which are 60 be decided.
The American Interpretation IS that
land leased prior to May l, 1917, and
which was in the process Of develop
ment then. is protected from retro
active application Of Article 81, gov
erning the rights of the Mexican gov
ernment TO the subsoil Of such prop
critics. The decisions, however, do not
touch on the validity Of leases on prop
esry not under development prior to
May l, 1917.
Congress Must Confirm
It is pointed out that the action Of
the Supreme Court will be ineffective
unless the Mexican Congress passes
appropriate legislation confirming the
decisions Of the court as TO the non
retroactivity Of Article 27.
The statement authorized by Secre-
tary Hughes said:
'"The department has received the
text Of four decisions of the Mexican
Supreme Court rendered in May last
in 'amparo' proceedings instituted by
petroleum companies. These four de
cisions seem to be identical III all e.
sentiaI particulars, and together with
the similar decision Of that court ren
case brought by the Texas Company,
appear to constitute what is called a
precedent in Mexican Jurisprudence.
These opinions set forth that Arti-
Gle il OF the Mexican constitution,
providing that no law shall be given
retroactive effect TO the prejudice q
any person whatsoever does not re-
late TO the provisions OF the constitu-
ton itself, and that when the consti-
tuition embodies retroactive provisions
these must be applied retroactively.
"It is further set forth that the
fourth paragraph OF Article 27 Of the
to petroleum and other subsoil sub
stances, cannot be considered TO be
retroactive, rs it does not iajure
previous and legitimately acquired
rights, but it IS apparent that the ap-
plicstion Of tina principle thus declared
must depend upon what Is considered
to be an acquired right
Relate to Worked Leases
THE 1--WE decisions creating tie
precedent in question relate exclusive
" TO cases of leases or contracts which
were made by owners of land for pros
pecting for and working petroleum, and
Il said that thereby the privileges q
the owners of the lands were trans
lated into positive acts and accord
ingly the claimants as the lessees or
holders Of these contracts had acquired
rights to the injury Of which the prov
sion OF the constitution OF 1917 for tie
naturalization o. petroleum could ret
be applied. The inference from these
decisions is that petroleum properties.
in process of development before May
!, 1917. when the present constitution
took effect, are protected from retro
active application Of the fourth para
graph of Article 81.
These decisions do net, however, ef-
fectively deal with the rights o. Amer
lean citizens in land containing petro-
leum or other sub-soil substances
where the lands were owned prior to