SEIZED OIL WELLS

New Zealand Herald, Volume LXXV, Issue 23021, 26 April 1938, Page 12

SEIZED OIL WELLS

ACTION OF MEXICO BRITAIN'S FIRM ATTITUDE RIGHTS SET OUr IN NOTE British WelosS RUGBY, April 22 In a further British Note to Mexico regarding tho expropriation of foreign oil companies it is emphasised that Britain is not intervening on behalf of tho Mexican Eagle Company, but on behalf of the very large majority of shareholders who are of British nationality and will be the ultimato sufl'erors. Tho Note proceeds: If tho doctrine wore admitted that a Government can first make tho operations of foreign interests in its territories depend upon their incorporation under tho law, and then plead such incoporation as justification for rejecting foreign diplomatic intervention, it is clear that means would never be wanting by which foreign Governments could bo prevented from exercising their undoubted right under international law to protect tho commercial interests of their nationals.

The British Government cannot admit such a doctrine as debarring it from intervention any more than it has ever regarded itself as precluded from intervening on behalf of its nationals by the existence of the so-called Calvo clause.

The Note points out that the Mexican contention that the case is still sub judice does not prevent Mexican occupation of the properties and the loss to British shareholders which it occasions.

The Note concludes with a repetition of the British representations for tho return of the properties.