February 17, 1972 A. M. Wilson E. C. DeMoss W. Bourret MEXICO INVESTMENT STUDY Attached hereto is revised report on Mexican Investments entitled: "Mining Opportunities in Mexico" (Revised) January 1972 This study is in response to your request that Hugh Douglas and I review invest-ment climate in certain foreign countries that may hold favorable potential for mining investments. Following conferences in Mexico City with Ruiz, Urguiza y Cia, representatives of Arthur Andersen, the tax section of the report was rewritten and expanded to include tax treatment of a Mexicanized company and/or a new mining venture. Mr. Eduardo Gonzalez is in charge of the tax section for Arthur Andersen and proved particularly helpful in outlining special concessions offered copper produ-cers in obtaining tax reductions on export of copper metal. Mr. Nicolas Urguiza participated in the discussions and offered advise on how to find a Mexican partner. Sr. Georges Ordonez, probably the best known mining geologist in Mexico, provided advise and counsel on copper investment opportunities and cost of exploration. Ordonez was formerly chief geologist of Kennecott Copper and has worked in Mexico for the past fifteen years. Dr. David Coolbaugh, Manager of Exploration for Asarco Mexicana also contributed information and advise on entering Mexico. He confirmed the decision of his company to bring the La Caridad deposit into production at an early date. Asarco presently maintains a staff of about twelve Mexican geologists, and is committed to a long-range development program. Apart from Asarco, Bethlehem Steel, Dupont and Cananea, there are three or four large Canadian Companies exploring in Mexico, the most active of which is Placer Development Company. The report concludes that Mexico offers attractive investment opportunities in mining and outlines the steps that should be taken to organize a Mexican company. A. M. Wilson E. C. DeMoss 2/17/72 page two MEXICO INVESTMENT STUDY We are holding in our files additional copies of this report for distribution by you should you decide to act favorably on the recommendations made in this investment study. Weston Bourret WB/nam Attachment - "Mining Opportunities in Mexico"