OIL FIELDS SEIZED

Wanganui Chronicle, Volume 80, Issue 67, 21 March 1938, Page 7

OIL FIELDS SEIZED

ACTION BY MEXICO GOVERNMENT EXPROPRIATE ENORMOUS ANGLO-AMERICAN LOSS Received March 20, 6.30 p.m. MEXICO CITY, March 19. Eighteen thousand workers seized control of the properties / of the American and British Petroleun. 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 compensation in wages, which the companies contend is impossible. | The Government is expected tc place an embargo on the companies and assume management as soon as the union which ordered the seizure makes a petition to this effect. A later message states that President Cardenas has expropriated all the Mexican oil companies, explaining that the embargo would be tzo slow At the same time the Bank o! Mexico announced that 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. BRITISH INVESTORS’ LOSF Received March 20, 11 p.m. LONDON, March 20. The Sunday Times says that thf Mexican expropriation of the oh fields will cause £40,000.900 loss to British investors.