The New York herald., 1922-02-20
MEXICO OIL TAX CUT;
TO.PAY us. BANKERS
Exports Levy Against
Americans Is Slashed
60 Per Cent.
TOTAL NOW S13.50O.O0O
Will Be Paid in Gold and
Applied Against the Ma
ti0nal Debt.
1922 TAXES EXEMPTED
They Will Be Subject of Fur
ther Discussion With
U. s. Interests.
1922 TAXEs EXEMPTED

MEXICO CITY, Feb. 19 (Associated
Press) The basis upon which the
heads of the American oil companies
with the Mexican Government relative
70 the payment of export taxes under
the decree of June were divulged
to-day in the outline of a decree given
out by Minister of tie Treasury de la
Huerta. The decree lacks only the
signature of President Obregon to be-
come effective.
The project contemplates the pay
ment Of 40 per cent Of the tax as
originally imposed by the June de-
cree. and means the payment to the
Mexican Treasury of approximately
13,5oO,0O0 pesos-s13, ,5OO,000 in gold
Reduction of go Per Cent.
The sums owed by the various oil
companies may be paid to the Treas
uiy in gold or in Mexican national
bonds, which will be received without
prejudice. 1t is understood that rep
resentatives of the oil companies here
have received instructions to pay the
taxes for the most part in gold, in
that the collections from this tax by
Presidential stipulation are to be APP
piled on the Mexican foreign debt.
AS explained BY representatives Of
the oil companies the project means that
the original tax has been reduced to
forty per cent of the original levy and
: embraces taxes due from June to De-
ccmber 81, 1921. One of the representa-
tives of the oil companies said the ex-
port taxes from January l of the pres
ent year are not subject to the provi-
sions of the decree and probably will
be the subject of further. discussions be-
tween the Mexican treasury, representa-
tvcs and the oil men. with possible
visit by the American oil men to Mexico
City in the near future.
1t is expected that President Obregon
will sign the decree when he returns to
the capital from Vera Cruz, probably
next Tuesday.
Minister de la Huerta ten days ago
made the statement that February IS
would see a settlement of Mexico's
financial affairs, and the publication of
TIE proposed decree is taken in some
quarters 10 Indicate that the oil payment
Will EdIIy dH duJuSlIilcIN Ol LIlc OUT
standing Indebtedness to New York
bankers.
Payments This Week.
II is understood that the Minister ex-
poets the decree to be signed so that the
oil men can start payment on Tuesday
or Wednesday, and arrangements have
been made for depositing all sums in
the Banco Nacional de Mexico against
foreign Indebtedness. 1t is also expected
that terms of settlement with the New
York bankers will be announced stimuli
tsneously with the publication of the oil
decree.
Another financial matter settled yes
terday by the Treasury Department was
with regard to the issuance of bonds for
the liquidation of the debt created dur
ing the Carranza Administration. when
25 per cent. Of the salaries of Federal
employees was retained ny the Govern
ment. This sum is said to approximate
$4,000. 900 pesos and will be liquidated
with the bonds which are to be distrib-
uted at an early date to those who failed
to receive full salary under Carranza.
The Government urges the holders not
to sell to brokers'. but To retain the bonds
for redemption on dates specified.