Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-30
Neither Side Ready to Yield
Two Days Before New Law
Becomes Effective.
SEIZURE OF AMERICAN
PROPERTIES DOUBTED
Gales Refuses to Extend Time for
Affected Interests to Con-
firm Concessions.
BY the Associated Press


MEXICO CITY, December 80
Unless there is a last-minute yielding
either by the New York headquarters
of the foremost American oil com
panieS operating in Mexico or by the
Mexican goVernment-neithe OF
which was indicated today-an i'm
passe will be reached Saturday over
Mexico's new petroleum and land
laws.
Under these laws, which the United
States Government has protested as
retroactive and confiscatory, foreign
owned or leased oil lands will revert
to the Mexican government unless
before Saturday, the owners have ap-
piled 10 Mexico for new concessions
confirming their previous rights.
President Gales, in telegram given
out late last night, refused an appll-
cation by the New York headquarters
of the foreign companies for an eXten-
sion Of the time in which they may
apply for confirmatory concessions OF
their rights
Seizure Still Doubted
Thus. if the oil men fail to apply
either today or tomorrow the proper
ties involved will theoretically revert
to the Mexican government. But
there still fingers here the question
whether the government Will IN
actual fact go as far as contiscation.
If, after the first of the year, it
seizes specific pieces of property it
will afford definite eases for such
action as the United States Govern
ment may decide to take. If, on the
other hand. no properties are taken
from their present holders, the stu
alton apparently may continue indefl-
nitely as at present.
In other words, there is no absolute
certainty as to when and how the law
may be enforced, and everything
hinges upon actual seizure and the
character OF the foreign protests re-
sulting therefrom.
The international aspect Of the situ-
alton revolyes solely around foreign
property rights acquired before 1917.
which is the date Of the present Mex.
the title to all subsoil mineral de-
posits, including petroleum..
l.. S. Stand Outlined.
Many foreigners had acquired oil
the former laws permitting such
titles. The United States Govern
ment is not concerned with those
titles acquired since 1917. but has in
sisted that the Mexican government
cannot. by retroactive enactment, re-
woke titles lawfully acquired before
1917.
In his reply TO the oil men. Presi-
dent Gales reiterated that the laws
did no: destroy any legally acquired
rights and asserted that his govern
ment had shown an ample liberal
spirit in executing them. He regret
ted that the facilities" accorded to
the oil companies by the government
had not met with reciprocity, and
added:
1T is not the oil industrys own in
terest, but causes far distant, which
are the underlying motives for the at
titude of rebellion assumed by some
of the oil companies in complying
with the laws
There have been numerous appli-
cations for confirmation of conces-
sions of lands acquired after 1917, but
the best information here is that none
Of the leading foreign companies has
accepted the provisions of the law
with regard to properties acquired be-
IOIC i"it.
Gales Expresses Surprise.
President Gales reply was address
ed to the following companies: La
Corona. FL Aguila, La Atlantica,
Agwi, Huasteca. Los Chijoles Cortez
Aguada Petroleum Co. Humble Oil
Refining Co, Inland Oil and Trans.
port Co., Mexican Gulf, Mexican Pc
troleum, TuXpan Petroleum Co. New
England Fuel Oil Co, Tamihua Pc
troleum Co, Standard Oil Co. of Ca't
fornia, Richmond Petroleum Co,
Standard Oil of New Jersey and
Transcontinental Petroleum Co.
The President expressed surprise
that the La Corona. Ell Aguila, Rich
mond, Transcontinental, La Atlantica
and Los Chijoles companies had signed
the request for poslponement, be-
cause, he said, these are Mexican
corporations which have already sub
mitted all their rights to the law
when asking for confrmatory con-
cessions."