"FLAGRANT VIOLATION"

Evening Post, Volume CXXV, Issue 70, 24 March 1938, Page 9

"FLAGRANT VIOLATION"

PROPERTY RIGHTS

AMERICAN COMMENT ON OIL

EXPROPRIATION

NEW YORK, March 23,

The financial editor of the "New York Times," in an extensive article recounting the Mexican expropriation of the oil companies, calls the act "one of the most flagrant violations of international property rights since modern commercial relationships were established among the nations.,

"The action is, further, untenable under the good-neighbour policy of all the American nations," he states, "and involves the friendly relationship of the United States and Great Britain, since the Monroe Doctrine precludes European nations from direct intervention ,in Mexico, thus making the position increasingly awkward."

Four American petroleum companies have asked the State Department to make diplomatic intervention in Mexico in regard to the expropriation. In support of the request they claim that there has been a manifest denial of justice.

JAPAN WILLING

CONTRACTS WITH MEXICO

FOR OIL

REPORTS IN MEXICO CITY

MEXICO CITY, March 23.

The newspapers feature reports from Tokio that Japan is prepared to make oil contracts with Mexico. The "Nichi Nichi Shimbun," in an editorial, is reported to praise Mexico for "liberating itself from British and American influence."

Mexican newspapers stress the fact that Japan has enough tankers to transport the petroleum.

The American Ambassador, Mr. Josephus Daniels, conferred "with President Cardenas today, and handed him a Note from the Secretary of State, Mr. Cordell Hull. The contents were not disclosed.

President Cardenas issued a manifesto justifying the expropriation and blaming the foreign companies for breaking labour contracts and maintaining the workers in misery. The President insisted that the expropriation will be carried out even if it- disrupts the country's monetary system and results in the devaluation of the peso.

Informed quarters point out that the prohibition of gold purchases ■ and dealings in foreign exchange will be found necessary to prevent the flight of foreign capital frightened by the expropriation decree.