MEXICAN OIL

Waikato Times, Volume 122, Issue 20464, 2 April 1938, Page 7

MEXICAN OIL

DECREE OF SEIZURE ANGLO-AMERICAN COMPANIES TO TAKE COURT PROCEEDINGS United Press Assn.—Elec. Tel. Copyright MEXICO CITY, April 1 The 17 American and British oil companies whose properties were recently expropriated by decree of the President of Mexico, General Cardenas, have announced that they are taking legal steps to have the decree of seizure set aside by the Court. Mr. Francis W. Rickett, the English financial agent who became famous by securing from the Emperor Haile Selassie in August, 1935, a concession over two-thirds of Abyssinia for the Standard Oil Company—which was not exercised owing to the fear of complications with Italy—conferred with the Mexican Government, which offered him large contracts for Gov-ernment-produced oil at well below world prices. Solution of Problem Hoped For The impression prevails that should the scheme prove sufficiently successful to provide funds to pay the companies whose property has been expropriated a solution of the problem might be found; otherwise the Courts are likely to nullify or ameliorate the decree in order to get the Government out- of the serious predicament which was precipitated by the seizure. The oil companies concerned announced that they would put an embargo on oil exported from their properties, although it is believed that would be difficult in the event of transhipments by way of a third country.