File No. 812.512/307.
Consul Miller to the Secretary of State.
Tampico, June 29, 1914.
One large American oil company has contract made with Mexican Government in 1908 which provides, for certain considerations, that company will not have to pay any due or tax on exportation of its production. In 1910 bar due was provided for maintaining bar at mouth Panuco River. Company has always protested against payment this due and has had case pending in courts in Mexico City. Company protests also that it is exempt under its contract of 1908 from payment production tax. Company representative states that present authorities state they do not recognize contract with Government and litigation pending in regard to same and insist on payment these taxes and are refusing to allow company’s ship to load until same are paid. Several ships are now being held up for other companies [Page 745] account refused to pay bar tax, American gold. Companies are awaiting advice from Department.