OIL ENTERPRISES

Northern Advocate, 22 January 1927, Page 5

OIL ENTERPRISES

THE MEXICAN EMBARGO

FRICTION WITH AMERICA

ARBITRATION FAVOURED,

; (Received 10.30 a.m.) ' WASHINGTON, Jasuary 21. Arbitration "With Mexico ove'r the oil disputes was brought appreciably nearer when the Senate Foreign Relations Committee by a vote of 13 to three decided to report to the Senate a modified resolution expressisg the opinion that the Administration should accept arbitration in the disputes.

Senator Borah, chairman of the committee, declared that the resolution would be brought before the Senate on January 24. The overwhelming vote in favour of reporting it practically assured its adoption.

The resolution was primarily introduced by Senator Robinson as it now stands, and merely expresses the opinion of the Senate that arbitration should be resorted to. It also indicates means by which this could be effected. In conjunction with Mr F. B. Kellog’s recent attitude, it is expected that an amicable settlement will be assured.

A message from Mexico City states that the Government of Mexico accepts in principle arbitration on the differences with the United States according to an announcement by the Foreign Office.—A. and N.Z. • The following communication was cabled from New York oil the 15th inst.— ‘ ‘ According to a message from Tampico, the Mexican Government has refused permission to drill wells to oil companies which do not recognise the new oil regulations. The decision has created a sensation and it is learned here that suits will be filed against the Mexican Government today by all American oil companies operating in Mexico, asking for an injunction to prevent the cancellations of permits to drill granted by Mexican Governments since the beginning of-the. year.’ ’