has brought to the Mexican Government a small fraction of the wealth extracted.[1] In December, 1925, two laws were enacted for putting into effect the principles of the constitution regarding national control of land and oil claims. These aroused storms of protest from United States investors and were the subject of prolonged diplomatic correspondence. The real point of disagreement, as shown in this correspondence, lies in the conception of property rights. Secretary Kellogg maintains that "the very essence of a vested interested is that it is inviolable and cannot be impaired or taken away by the state save for a public purpose upon rendering just compensation."[2] The Mexican position is that social progress may necessitate change in ownership laws. "Whenever a law is enacted which brings a change in the ownership system the main problem consists in laying down temporary measures which make it possible to pass from one system to another."[3] Owners, if damaged, should receive recompense but progress must go on. Accordingly, the 1925 petroleum law[4] requires that oil land titles acquired prior to 1917 should be exchanged for 50 year concessions, if necessary to be extended to provide ample time for extraction of the oil. Likewise, the alien land law[5] provides that foreigners holding land in the prohibited zones or under other conditions forbidden by the constitution, may
- ↑ Official estimates show that since 1901 Mexican produced petroleum has netted more than 100% profits to investors, who still hold property greatly increased in value. On the other hand, the total amount received for oil taxes by the Mexican government would scarcely pay its expenditures for one year, Saenz and Priestley, Op. Cit., ps. 10 and 27.
- ↑ Correspondence between the United States and Mexican Governments, Note of Secretary Kellogg, July 31, 1926.
- ↑ Ibid, Note of Minister Saenz, October 7, 1926.
- ↑ Foreign Policy Association, Pamphlet, No. 38, Series of 1925–6, p. 27.
- ↑ Ibid, p. 25.
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