New-York tribune., 1922-07-08
Oil Conferences
End ed Without
Final Agreement
DE La Hueria Will Present
Proposals of u. S. Conn
panies TO Obregon; Calls
Mission Here a Success

The conferences held here between
Adolfo de la Huerta, Mexican Minister
OF FINANCE, and the committee of Amer
lean oil executives failed to result in
aehnite agreement regarding future
exploration and exploitation work of
the oil fields of Mexico, according to a
statement issued yesterday after the
conclusion of the meetings by w. c.
Teagle, chairman of the committee.
and president of the Standard Oil Com
pany of New Jersey.
Mr.. de la Huerta, who also issued
statement, made it clear that the OBJ
Ject OF his mission here was not the
formulation of a tangible plan. but
rather to hear the proposals of the
American companies owning properties
IN Mexico concerning the status of
helds yet unexploited. The problems
to be settled are understood to relate
to future taxation on oil derived from
those regions and the matter of final
ownership of the sub-soil rights.
In addition to Mr.. Teagle the oil
executives and the companies repre-
sented at the conference with the Mcxi-
can Minister Of Finance were Z. L..
Doheny, chairman of the Mexican Pc
troleum Company; f. C. Lufkin, chair
man man OF the Texas Company; II. F.
Sinclair, chairman of the Sinclair Con-
solidated Oil Corporation, and j. W.
Van Dyke, president Of the Atlantic
refining COmpanV
am taking with me requests made
by. the above mentioned companies"
said Mr.. de la Huerta, Comprising
matters not only pertaining to the De-
partment of Finance, which is under
my charge, but related in some points
70 the Department of Industry and
commerce, as both departments are in
tlmately connected so far as the oil
industry is concerned AS soon as I
return to Mexico City l will present to
Llc. Miguel Alessio Robes, Minister of
Industry and Commerce, all matter
pertaining to his department. In any
event, any definite action on the prop
osltlons presented by the oil executives
will be that taken by the President of
the Republic, General Alvaro Obregon."
In his formal statement Mr.. Teagle
sad regarding the conferences with the
Mexican Minister of Finance:
"While no definite agreement was
reached, the conferences have resulted
memoranda embodying the more i'm
portant general principles relating to
future exploration and exploitation
work in Mexico. Minister de la Huerta
IS taking these memoranda back to
Mexico to be submitted to President
Obregon. The principles outlined in
the memoranda are intended to apply
not only to operations by the COM
panies participating in the conference,
but to all other companies operating
IN Mexico which may elect to enter
into similar arrangements"
In an informal talk with newspaper
men yesterday after the conclusion of
the final conference Mr.. de la Huerta
said that his mission in the United
States both as regards the settlement
Of the Mexican external debt and the
problems relating to the exploitation
Of new oil fields had been successful.
Referring to plans under way for the
organization Of a central bank of issue
in Mexico, the minister expressed the
belief that such an institution will be
in operation before the end of the
year. Of the stock he said that 81 per
cent would be owned by the Mexican
government and the remainder by Eu-
ropean and American banking inter-
ests.
He explained that while the final
solution of the debt question will
await the action of the Mexican Con-
gress in the fall, the proposals of the
American oil executives need only the
sanction Of President Obregon.
Minister de Ia Huerta will return to
Mexico City some time next week, fol-
lowing pleasure trip over the week
end.