Cayton's weekly. [volume] (Seattle, Wash.) 1916-1921, 1918-08-31
GERMANY'S INTEREST IN MEX
ICO'S OIL
ZOOS OIL
Literary Digest

The hidden hand of the Hun was
suspected in the decree of the Mexican
Government, dated February %, which
imposed such new taxes and restric-
lions on oil concessions that some OBJ
servers bluntly called it "confiscation."
British and American naval circles
were alarmed, we are told, because the
operation of the new order promised
serious interference with the supply
of crude oil needed by battle-ships and
destrOyerS. The situation was made
worse by an amendment of July 81
which provided that undevelOped oil
lands might be seized by the Mexican
Government upon the failure of their
owners to make declaration and refusal
to submit to the new taxation. But
now Carranza has had safe recourse
to second thought, as the Rochester
Post-Express puts it, for he has in
effect Cancelled the decree of July 81.
Washington dispatches advise us that
while the modification of the decree
will hardly be wholly satisfactory, it
seems to make concessions that pave
the way for clearing up the situation
between the governments concerned.
The POst-Express is inclined to divine
that the President of Mexico Cooked
ahead to time when Great Britain
and the United States will not be too
busy elsewhere to look after their in
terests in his country" OF Germany's
interest in Mexico's oil we learn also
from Washington dispatches that rep
resentatives of American oil companies
quote Manager Balm, of the Hamburg
American line, as recently stating pub
licly: after the war is over we are
assured OF extensive oil possessions
overseas" Of hte Allies oil require
ments this year we read in these dis
patches:
"The Allies need this year 100000
600 barrels of crude oil, for which they
depend entirely upon the United States
The United States can produce not over
315,000,000 barrels. The Mexican fields
can supply 130000,0O0 barrels. All
the oil in Mexico is owned by Ameri-
can and British companies. Under the
newest decree, Mexico attempts to
make oil the property of the nation.
Mexican petroleum then would become
nationally owned contraband, and as
such might not be sold by a neutral
country to belligerent under inter-
national law. To endow petroleum
with that character and prevent ship
ment of it to the Allies is said to be
the purpose of German propaganda in
Mexico"
While the proceeding of the Mexican
Government may possibly be technical
ly defended as the right of a neutral
nation in such a situation, observes
the New York Journal of Commerce, it
is certain that it will be poor policy
for Mexico to pursue, and we read:
"Her most dangerous enemy is that
noxious propagandism which seeks to
induce it to use such power as it can
exercise to help Germany. If it does
that against Great Britain and the
United States, which may be it's most
valuable friends for all time to come,
it will be calculated to forfeit their
friendship, if not to make actual enc
mics of them.
Nothing could be more shortsighted
for Carranza and his advisers than to
harbor secret agents of Germany and
allow them to propagate policy of
aid to that belligerent empire in Eu-
rope as against the Allied forces of
free government and national indie
pendence. There need be no threats
of forcible possession and protected
operation of the oil-lands by the Brit
ish and American governments; but
surely the Mexican authorities ought
to be prudent enough to avoid giving