PLANNING & DEVELOPMENT 31 MAY 1972 MINING DIVISION UTAH INTERNATIONL INC. Mexico Study Re: Mexico Report
Paradise, California May 27 1972
Mr. Weston Bourret
Vice-President
Utah International Inc.
550 California Street
San Francisco, California 94104
Dear Wes;
This will acknowledge and thank you for your letter of May I7th.
I am taking the liberty of enclosing my translation of the re-gulations which apply to special concessions in the National Reserve.(copper) This may help, to clarify the official attitude on this subject. In essence, officially, the Government will listen to and consider applications for spe-cial concessions in the National Reserve only from mexicans or mexicanized Companies. Consequently the first step is to associate with qualified mexican or mexicanized partners. This can be done in several ways:-
1- By acquiring the ""B"" stock of a qualified Mining Company whose application will be favorably considered by the Government.
2- By associating with a reputable and well-established mexican financial Institution to incorporate as a mining Company.
3- By organizing or acquiring a mexicanized Company (66% ""A""-3k% ""B"" shares) with a qualified and influential mexican group to apply for the special concession and later seek Government participation.
Until one of the three indic ated steps has been accomplished I believe it would be futjle to approach the Government on the subject of a special concession.,During the early stages of the mexiacnization process some of the officials came under fire for subverting or circumventing the spirit of the law by accepting Mexicanized Companies with ""dummy"" ""B"", mexican stockholders, ect. Consequently the officials are now extremely sensitive and meticulous about carrying out the letter as wellas the spirit of the Law.
Finally the mexican financial policies have generally been realistic and practical, Economic conditions in the future may lead to a more lenient attitude toward foreign investment.
Specifically, in reply to the fourth paragraph of your letter of May 17th. for the reasons mentioned above I believe that it would be a mistake to approach any of the government ministries at this stage, and that if you did, they would politely but emphatically refuse to recommend the names of any possible associates.
with best regards,as always Sincerely yours Al Rodriquez A.I. Rodriquez
