The Treaty of Bucareli It was an agreement reached by the governments of the United States and Mexico in 1923. The negotiations took place from May 15 to August 13 and took place in Mexico City, in a building on Bucareli Street that ended up giving name to the agreement.
This pact had an eminently economic character, since it dealt with US claims after the Mexican Revolution. The 1917 Constitution contained several measures that affected American interests, especially those related to Mexican ownership of oil production..
For its part, the Obregón government sought recognition from the United States, which had refused to recognize the cabinets that emerged after the revolution..
Although both parties reached an agreement, its application was not easy at all. None of the Congresses of each country agreed to endorse the Treaty and the Mexican Supreme Court delimited part of its articles so that it was not retroactive, as the Americans intended.
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The complaints of the United States came from the very beginning of the Mexican Revolution. After the overthrow of Porfirio Díaz, the revolutionaries began their struggle to create a constitutional government. On many occasions, the positions were divergent, but finally the revolution triumphed.
Venustiano Carranza, the first president of Mexico to emerge after the Revolution, promulgated the Constitution in 1917. It had a marked social character, with a multitude of articles that established the expropriation of land and its distribution among the peasants. Likewise, it established public ownership of the country's natural wealth..
Álvaro Obregón came to the government of Mexico in 1920. The politician had led a revolt, that of Agua Prieta, against the candidate that Carranza wanted to place in the presidency. The United States argued that, given the way it came to power, it could not recognize the new president.
However, in 1923, a year after the end of the legislature, the situation changed. The American Union urged Americans to recognize the Mexican government before the new elections.
Obregón considered this as one of the most important issues. His internal enemies tried to enlist the support of his neighbor to the north and he wanted to maintain influence in the next government..
Furthermore, he was a less nationalist president than Carranza had been. Obregón, given the precarious economic situation of the nation, thought that they were necessary
The United States claimed that all the legislation issued by post-revolutionary governments had harmed some of their citizens. During the Revolution, a significant number of Americans had lost their property, without any compensation.
Also, possibly most importantly, the 1917 Constitution established Mexican ownership of oil fields. The US companies that had managed the wells were going to lose their rights if their government did nothing.
In this way, the United States put three conditions to recognize the Mexican government. The first, to clarify how the new situation of the oil industry was going to affect their companies, as well as the agricultural estates in the hands of their fellow citizens. Likewise, he demanded that the foreign debt be paid, paralyzed by Carranza.
Finally, they demanded that compensation be paid to those affected by the revolutionary struggles.
The first reaction was the ruling of the Supreme Court of Justice of Mexico. According to their interpretation, Article 27 of the Constitution (the one referring to oil), would not be applied retroactively..
Even before the Magna Carta was promulgated, Carranza had issued a decree that affected the agricultural possessions of some Americans. It was the decree of January 6, 1915, through which the lands of indigenous groups were restored.
Later, the Constitution delved into these measures. The most important article on the subject was the 27, which established that all the natural resources found in Mexico belonged to the State. Among those resources, oil stood out by far, whose industry was managed by foreign companies.
Apart from US pressure, Obregón wanted to attract foreign investment that would improve the economy.
The United States had refused to recognize the Mexican rulers. The revolt of Agua Prieta, starring Obregón, worsened the situation.
The Americans claimed that he had come to power through violence and that they could not legitimize the situation.
Beyond Obregón's desire to see his government recognized, there was also a political strategy. The elections were close, just a year away, and he did not want the United States to support any of its enemies.
For all this, in 1923 negotiations began between the two North American governments.
After months of negotiation, Fernando Roa and Ramón Ross, on the part of Mexico, and Charles Warren and John H. Payne, finalized the agreement.
Both parties agreed to sign two treaties, apart from an unofficial pact. Thus, the creation of a Special Claims Convention was provided, which would serve Americans affected by the Revolution..
On the other hand, a General Claims Convention should be created, which covered what happened after 1868. In this section was the issue of oil exploitation and other investments made before the new Constitution..
The Mexicans undertook to pay compensation to the Americans who claimed. They also had to recognize concessions that had been made before 1917, including those of oil companies..
At the end of that same year, on November 27, the creation of the Special Claims Convention was approved in the Senate. Three months later, the same happened with the General Claims Convention.
In return, the United States recognized the government of Álvaro Obregón.
The then Minister of Finance, Adolfo de la Huerta, very actively opposed the signing of the Treaty. The politician pointed out that he was conducting his own negotiations to reestablish relations without having to give as much economically.
Their disagreements led him to resign and announce his candidacy for the elections. However, on December 7, he decided to rise up against the government. The president's supporters defeated the rebels with the help of the US government.
The next Mexican president was Plutarco Elías Calles. The tensions over oil had not disappeared and, finally, he decided to reject the Treaty of Bucareli.
He immediately decided to prepare a new law on the matter, strictly observing article 27 of the Constitution. The United States threatened Mexico with retaliation and called Calles a "communist".
The law was enacted in 1926 and meant the cancellation of permits for US companies to extract oil. At one point, war seemed inevitable, but it was avoided by direct talks between the two presidents..
The problem, however, was not solved. Years later, President Lázaro Cárdenas ended up nationalizing all Mexican oil.
For a long time, and even today in some sectors, there has been a belief in Mexico that there was a secret clause in the treaty. This, theoretically, prohibited the country from building specialized or precision machinery.
However, there is no evidence for this and historians reject its existence..
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