New Britain herald., 1926-12-31

 oil and mineral deposits beneath the surface belong to the nation.
 This radical departure from the previous Mexican policy and imme- diately raised the question whether Article 27 was 10 be interpreted as being retroactive. Several American oil companies immediately had re- course to the Mexican courts.
 The Carranza government mean while aggravated the situation by imposing heavy taxes on petroleum lands and on contracts and royalties. and exacted license fees for new drilling and explorations. This was promulgated on February 10, 1918.
 American oil companies were sue cessful in the Mexican courts. the Mexican Supreme Court holding in subsequent decision that all rights acquired by the oi companies prior to May l, 1917, were upheld by the court.
 In September, 1922, President Ob- regon clarified the situation by de- claring that Article 27 was non-ret- roactiye. On the basis of this dec laration a commission composed of two MeXicans and two Americans was appoiated and convened in Mexico City on May Ii, 1923, to go into all questions in dispute between the two countries. The commission sat until August Is of that year, by which time all the differences be- tween the two governments had been satisfactorily cleared up. AS con- sequence the Mexican government under President Obregon was recog- nized by the United States on Au- gust 31, 1923.
 This did not entirely satisfy foreign corporations, however, who maintained that attitude of the Mex ican government as evidenced by Article 27 was ultimately confisca tory" New negotiations were then instituted between the MeXicon gov ernmcnt and the foreign corpora tions themselves. who called them selves the Association of Producers of Mexico. The Mexican treasury department announced on October IS, 1924, that an amicable agree ment had finally been reached with the Association of Producers.
 A new and what the companies term a more radical era set in with the inauguration of President Gales on December l, 1924, eliminating in the promulgation of the land and petroleum laws to which the United States is taking exception through Secretary of State Kellogg The latter's note of warning in June, 1925, created an unfavorable i'm pression in Mexico and tended to solidify the intention to make the laws more stringent. President Gales has shown increasing firm ness in the face of Secretary Kel- lcggs protests. The last step was the promulgation of the new land and petroleum laws, and the final step will be the issuance of regula- tons for their interpretation and enforcement. The character of these regulations will be the key to the situation as it finally eventuates. A lax enforcement might form a loop hole; but such laxity is not expected so long as Gales remains president.
 The attitude of the present Mexi-
 
 or Mexico for the Mexicans as pos sibleIt is said 10 be probable that all those companies which made their investments in good faith and have honestly developed their re- sources will continue to be protected by the Mexican government. Only about half the billion dollars invest ed by Americans is affected by the laws.
 On the other hand, all cases Of defective titles. and where tracts of land were secured by what the Mexican government regards as doubtful methods. will probably be adversely affected by the new regu- lations. The policy of the govern ment is also to curb the granting of further concessions to foreigners ex- cept on stringent terms.
 The meat of the cocoanut is that the Mexico of the present day is not the Mexico of past day. The peo- pie of Mexico have been developing q strong national consciousness since the overthrow of Diaz. The years of upheayal which followed the regimes of Madero. Huerta, Carranza, Obre- gon. and which still existed to a certain extent when Gales became president have given way to peace and accelerated growth. It is the object of tie Gales government ts foster this nationalism while pre- serving fricns+s relations with the United States.
 The new petroleum law was passed by the Mexican senate on December IS, 1925, and promulgated pr, I,,1,,y,Ipr r-l,;,