Douglas daily dispatch., 1927-01-05
MEXICO REPLIES TO QUESTIONS
OF ATTORNEYS REGARDING fine
POINTS IN THE PETROLEUM Law

MEXICO CITY. Jan. Especial to
The Dspatch) Legal difficulties
which have arisen in the interpreta-
tion Of the petroleum and allen lano
laws are now being discussed by
legal representatives of the pet.
roleum interests and legal advisers
of the department of foreign rela.
tions and of industry, commerce ana
labor in efforts to clear up the
points which appear doubtful Tho
principal point at issue is the dura,
ton of rights of foreign companies
or Mexican companies with foreign
shareholders under the alien lana
laws in the confirmatory concessions
given the companies IN place of
their previous titles. A. Luna
PARA and Alexandra Quijano were
designated by the petroleum inter
ests to draw up the memorandum tc
the department of industry, com
merce and labor, with date of De-
cember 20, which reads as follows
"At the meeting which was held
today between representatives of thai
department and these of several
petroleum companies, in attempting
to establish the duration of the con,
firmations of the rights of explora.
tion and exploitation, it was neces'
sary, in the opinion of the under
signed, to decide upon the Interpre'
tation which should be given to
article 10 of the law of March 22,
1926, regulating that of December
i, 1925, which is the organic law
of section / of article u of the con-
stitution; and the representatives of
that department stated that the in
expectation of that precept was OF
the competence of that department.,
which is under your worthy charge,
as well as that of foreign relations;
the reason wherefore we have the
honor to address you in consultation
in order that, if you consider it
opportune, having previously asked
the opinion of the department of
foreign relations and with the ap-
proval of the president of the repub
lie, you deign to give US youl
opinion of the following points:
article 10 of the aforesaid regu.
lat.ons provides that when the pos
SCISSOR of the rights which are re,
ferred to in article of the aforesaid
law of December 81 is forelgn
company or Mexican company with
foreign shareholders such rights
may be conserved by the said com
lany for all the time of its ex,
,istence, according to the articles Of
Incorporation.
well, then, dealing with Mexican
companies with foreign shareholders
in which there is in the, articles OF
incorporation the power, on the part
of the shareholders that their dura
ton may be subject to extension or
even if this power of extension does
not exist, explicitly in the articles
of Incorporation, the duration Of the
companies may be extended, since it
is SO authorized by the commercial
code in force, we wish to know il,
when the duration of these COM
ranies is extended, they have, as it
appears to us they should have, the
rights which are granted them BY
article TO- for all the time of the
extension; that is, for all the time
of the life of the company.
'sNe permit ourselves to bring ur
the same question when it is a mat
ter of foreign companies, If in their
articles of incorporation, there exists
the clause on extension or if the
laws under which they are incor,
Grated contain the power OF extern,
sion.
"If the foreign companies are IN
corporated under laws which dc
grant them the right of extension IN
their duration and the petroleum
rights whose confirmation is tn<
volved have duration greater than
than which remains to the company,
is the confirmation limited only to
the period of duration of the COM
panies even though this may as
has been said less than that of the
rights whose confirmation is asked?
The case might be, for example, that
of rights derived from a lease for
petroleum exploitation for more than
20 years, belonging to foreign
company whose duration is alrea1y
only ten years and which company,
according to the foreign laws under
which It was incorporated, may not
be extended Would the confirma-
tion of rights be only for ten years?
Would the confirmation, as appears
to us just be for the so years of
the contract, empowering the com
pany to ALLEVIATE its rights before it
became extinct, to an entity which,
according to the laws, may acquire
them?
'9The Importance of this consulta,
tion which we permit ourselves to
make you, is unquestionable and
therefore, very attentively, We re-
quest that you deign to resolve 1t on
all points above mentioned"
This commumcati on the part of
the attorneys for the petroleum com