RETURN DEMANDED

Wanganui Chronicle, Volume 80, Issue 88, 14 April 1938, Page 7

RETURN DEMANDED

EXPROPRIATED OILFIELDS

BRITAIN’S NOTE TO MEXICO

MOTIVE POLITICAL DESIRE?

Received April 13, 5.5 p.m. LONDON, April 12

The British Note, which was 'nt to Mexico on April 8, has been released. It demands the return of the expropriated oilfields.

Britain does not question Mexico’s general right to expropriate in the public interest on the payment of adequate compensation, but this principle does not justify the essentially arbitrary expropriation.

The Note asserts that the Labour Board imposed an unjustified award. His Majesty’s Government is satisfied the results of non-compliance with the award do not warrant such a drastic and far-reaching measure, and found difficulty in escaping the conclusions that the real motive was the political desire m acquire Mexican ownership and control. The expropriation was tantamount to confiscation under the veil of legality based on labour issues; also, the consequences had been a denial of justice and a transgression of international law.

FLAT REFUSAL

MEXICAN REPLY TO BRITAIN Received April 13, 9.30 p.m. MEXICO CITY, April 13. Mexico has sent a Note containing a flat refusal of Britain’s demands, thus closing the door to any discussion on the return of the expropriated petroleum companies. The reply is not phrased in extreme terms but is definite and final.

Due to rumours that the United States had approved of the expropriation, the American Ambassador to Mexico, Mr. J. Daniels, issued a statement to the contrary. He pointed out that, despite the United States’ concession of the existence of expropriation right, it was yet possible to question the legality of the present procedure if the compensation were unsatisfactory.