PROPERTY SEIZED.
OIL WORKERS IN CHARGE. EXPROPRIATION IN MEXICO. MEXICO CITY, March 20. Eighteen- thousand workers seized control of the properties of American and British petroleum companies, representing an investment of 450,000,000 dollars, after the Federal Labour Board had cancelled the companies’ labour contracts on the ground that they did not comply with the Supreme Court’s wage ruling, under which the companies were ordered to pay 40,000,000 dollars as compensatiaji lor wages, which the companies contend is impossible. The Government is expected to place an embargo on the companies and assume the management as soon as the union, which ordered the seizure, makes a petition to this effect. A later, message states that President Cardenas expropriated all the Mexican oil companies, explaining that an embargo was too slow. At the same time the Bank of Mexico announced it was indefinitely suspending dealings in foreign exchange, presumably to halt the flight of capital from Mexico and maintain the price of the peso, although the latter is certain to .drop in private dealings. The foreign mining industry, which is equal in importance to the petroleum industry, is fearing more and more that similar nationalisation may take place in mining, due to strikes and the action of mine unions in telegraphing to President Cardenas praise of his petroleum expropriation and hinting that they would welcome similar action in their industry.
It was indicated that Washington would find it difficult to ignore the situation when the workers seized the offices and ejected British, American, and Dutch officials, and employees of the Mexican Eagle Company controlled by the Shell Co. The diplomats are keeping London and Washington informed. The American Ambassador (Mr Daniels) expressed concern over tlie possible effect the situation will have on President Roosevelt’s good-neighbour policy. LOSS OF £40,060,000. TO BRITISH INVESTORS. LONDON, March 20. The Sunday Times says the Mexican expropriation of the oilfields will cause a loss of £40,000,000 to British investors. •
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Bibliographic details
Manawatu Standard, Volume LVIII, Issue 95, 21 March 1938, Page 9
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321PROPERTY SEIZED. Manawatu Standard, Volume LVIII, Issue 95, 21 March 1938, Page 9
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