Douglas daily dispatch., 1926-01-27

those rights, requiring previously
that the foreigner agrees not to have
recourse to other means of making
mis- rights effective than those which
are granted by Mexican laws to
Mexicans. The same requirement
must be complied with by foreign~
er who acquired any participation in
Mexican corporations owners of such
properties
This requirement has been enforced
since 1917 without any foreigners
excessive, nor has there been any
DEGREES of foreign capital in the
country
The obligation imposed on foreign
Fers to acquire participation in Mexi-
can corporation might be construed
as. setting up hindrance to the de-
velopment of stock companies; but
the regulations which are to be en-
acted in accordance with the power
granted the executive by the law,
will provide that Mexican stock com
ranies, when organized, shall secure
from the department OF foreign re-
lations a permission that in the event
that foreigners might secure par
ticipation in them, the said compan-
les. making an agreement in the name
of it's stockholders to consider them
selves as nationals in so far as re-
CARDS their participations, and to in
clude in the clauses which must APP
appear on the shares to the bearer
the condition that every shareholder
lei nnGi6pr2
himself in every way subject to the
provisions of the Mexican laws
AS regards companies already or
ganized, they may ask permission to
add to their bylaws a similar pro-
vision.
Second: Foreigners may not for
any reason acquire ownership over
lands and waters in a zone one hum
dred kilometers along the frontiers
and fifty kilometers from the sea-
board nor be participants in Mexican
corporations which acquire such pro-
perty in this zone.
This also is provision of the con-
stitution enforced since 1917, but
which in practice has been found
frequently evaded through the or
ganization of Mexican corpoatlons'
wherefore, it became necessary to
state definitely in the law that tor-
eigners may not acquire domain over
lands and waters in the prohibited
zone, even indirectly as participants
in Mexican corporations. The only
aim of this provision is to enforce
due respecr Is, the constitution.
So far as the rest is concerned, for
direct domain over lands and waters.
Since IN the case of mines, petroleum.
or use of waters, the individual does
NOT acquire direct domain put olllH
a right of exploitation or usuIruct
Which the government grants throush
concessions, the foreigners Will not
be prevented from acquiring such
concessions.
The industries, therefore, will not
find obstacles in the law to thelr
development Those having forelSh
interests which are under the pro
hibition to acquire ownership OF the
lands necessary for the buildings OF
other purposes of their concerns are
permitted by the law to make lons
time leases in addition to the TACT
that they may take the lands m usu~
fruct or use or mortgage over them
Third: The law only estaehshes
limit for the participation of foreign
capital when it is a matter OF Mex
lean corporations owning rural pro-
perties destined to Agricultural ends
in which the aforesaid foreigners
may not hold more than 80 per cent
of the capital OF the same inc pur-
pose Of this provision is, clearly that
OF rpsnrving to MeXicans in what Is
essential the cultivation and the en-
Joyment of arabic lands. The rlght
which Mexico has to do so is unde-
niablc Almost all of the new couh-