MEXICO SULKING.

Pahiatua Herald, Volume XLVII, Issue 13857, 16 May 1938, Page 5

MEXICO SULKING.

ECHO OF BRITISH NOTE LONDON AMBASSADOR RECALLED. United Pres® Assn.—By Electric T elegr aph.—Copyright. MEXICO CITY, May 14. The Mexican Government has recalled its Minister in London, Senor Primo Bellamichel, in view of Britain’s “unfriendly attitude.” A message from San Antonio, Texas,, states that Senor Vicente Cortes Herrera, manager of the Mexican Petroleum Commission, told a correspondent of the United Press that the British and American oil companies must accept payment for the expropriated properties in oil or funds derived from the sale of oil to other nations. Mexico was already selling oil in foreign countries, including Germany, France and the South Americas.

The suspension of diplomatic relations and the closing of the legation in London were announced in a Note handed to the British Minister, Mr O. St. C O’Malley, by the Foreign Minister, Senor Edpuardo Hay. Simultaneously Senor Hay handed Mr O'Malley a cheque for 361,737 pesas (about £20,000) covering the claims and annuity due at January 1, 1938, plus interest, which was the subject of Britain’s last Note to Mexico.

A Mexican Press communique stated that Mr O'Malley was notified that in view of the not very friendly attitude toward the Mexican Government in connection with the recent expropriation of the oil companies the Mexican Government “feels it necessary to withdraw its Minister m and the Legation personnel in that country. It is closing the Legation and leaving the Archives in the custody of the Mexican Consul-General.” Mr O’Malley told the New York Times that he had not received a time limit in which to leave Mexico. “I have informed my Government and am awaiting instructions,” he added.

The text of the Mexican reply to the British Note demanding the payment of special claims maintains that the agreement of December 31, 1935, recognises Mexico’s right to defer payment by delivering interest on unliquidated and annuities, which, therefore, does not make them demandable. “In view, nevertheless, of your Government’s attitude in the matter, J have pleasure in attaching a cheque for 331,737 pesos, it having been necessary to rectify the figure of 370,962 mentioned by your Legation, since the latter figure was erroneous.

“As the object of the Note, which is hereby answered, is to require the above-mentioned payment, I refrain from taking into consideration the diverse reference which the Note contains regarding the state of the internal and external debt of Mexico. These references do not take into account on the one hand that your Government lacks any right to analyse the interior situation in Mexico or on the other hand the complex circumstances involved which explain and even justify the attitude of my Government. These references do not halt at the limits that might be expected. “Allow me, only because I consider it pertinent, to call to the attention of your Excellency that even the most powerful States and those which have at their disposal abundant resources cannot boast that they are uj>-to-date in the payment of tlieir pecuniary obligations.” The Mexico City correspondent of the New York Times says that Mexico’s unprecedented act, carrying with it serious international complications, was the direct outcome of three British Notes to Mexico between April 8 and May 11. Mexico is counting ypoji the Monroe doctrine to protect it from Britain's wrath, and an unpleasant situation is laid at the <X«orstop of Washington. It was strongly rumoured tonight that Britain had been leading up to the breaking-off of relations bv the Notes. Mr O'Malley, however, denied this “emphatically.” WASHINGTON GRAVELY CONCERNED. Washington Is' gravely concerned over the British-Mexiean breach, says i he New York Times. Apprehension is felt lest coolness might develop between Britain and the United States, because their different policies have increased the difficulties it may occasion in the adjustment oi the expropriation dispute. Great interest is manifested, however, in studying this possibility, for there had been an indication recently that, if Mexico failed soon to submit an adequate proposal for compensating the British and American oil companies, the United States might seriously consider abandoning its softer policy and moving over to the British position with a demand for the return of the properties.