File No. 812.512/340.
The British Embassy to the Department of State.
memorandum.
With reference to the attempts of the port authorities at Tampico to enforce the payment of bar dues and production tax on oil in American gold, His Britannic Majesty’s Embassy has received a despatch dated June 28 from the British Consul at Tampico. He states that the oil companies and steamship agents have been refusing to pay the bar dues in American gold but have invariably tendered payment of same in Carrancista currency which the custom house authorities have refused to accept evidently with the intention of calling upon the bondsmen of the different steamship companies to pay the bar dues, etc., in American gold at the rate of two for one and, if the bondsmen refuse, their property would be confiscated. The demand for payment at the rate of two pesos for one can only be considered in the light of a forced contribution.
The custom house authorities are now refusing to clear all steamers from Tampico until the steamship agents pay these bar dues in American gold.
If the action of the port authorities is recognised by the foreign companies as being legal it will mean that not only bar dues but all other port Charges, State and Federal taxes will probably be collected in the same manner.
It appears that at the present time the only export from Tampico is that of crude oil and the sudden increase in Charges connected with the exportation of oil will seriously cripple this important industry in which American as well as British interests are extensively engaged.
The financial difficulties under which all foreign companies are operating in the district of Tampico, combined with the uncertainty of never knowing from day to day what further taxes may be imposed on the exportation of oil, render it almost impossible for any contracts to be made ahead.
[Page 749]In the opinion of His Majesty’s Embassy the state of affairs described above urgently calls for redress. The port authorities are insisting on bar dues being paid in American gold instead of in Mexican or Constitutionalist currency although the latter has been forced into circulation and persons refusing to accept it are punished by fines and imprisonment. Apart from the injury to foreign commerce these methods can not fail seriously to impair the credit of the Constitutionalists and His Majesty’s Government hope that the United States Government will do all they can to induce the Constitutionalists to withdraw the demand for payment in American gold and treat the foreign trading interests fairly and properly.
Washington , July 13, 1914.