Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-31
The Mexican Crisis.

With Secretary Kellogg STANDING
nat on his final brief note to Mexico
of October 80, in which he announced
that "this Government finds no &C.
casion to modify any of the poslliol's
which It has heretofore taken" Tin con-
nection with the Mexican land and
netroleum laws and their interpretar
toni land desires to be understood as
maintaining those positions with the
utmost emphasis" and President Gales
calling his hand through his recent
announcement to the oil companies
that the oil laws coming into effect on
Saturday must be obeyed without any
extension Of time, the relations or the
United States and Mexico will tomor-
row assume q new phase. 10
carry the poker smile somewhat
further. the calling Of a hand down
along the Rio Grand has ever been
a business fraught with possibilities.
For contrary to the normal etiquette
of the game, the call is there often
the signal for the beginning rather
than the termination of serious bust
ness.
The positions referred to in Score
tary Kellogg's concluding note may
be briefly summarized as follows: That
this Government considers that the
land and petroleum laws promulgated
in Mexico toward the END of 1926.
under which foreign oil companies
must exchange their present vested
property rights for fifty-year leases
by January /, 1927, amounts to con-
flscation in the case Of property &C
ouired before 1917. That it is the
right and the duty of this Government
to protect it's citizens against any
invasion of their rights of person or
property by q foreign government
and that this right may not be con-
tracted away by an individual. That
the declarations Of the American and
Mexican commissions in 1928, subse-
quently ratified by an exchange of
notes between the two governments,
takings, (which formed the basis and
moving consideration for the recogni-
ton Of the Mexican government by
this Government" That vested rights
may not be impaired by legislation
retroactive in character or confisca-
tory in effect.
To each of these positions Mexico,
through it's minister OF foreign affairs.
has taken exception. The fundamen
tai contention that the application OF
the new law will in many cases
amount to conflscation Is denied, but
the United States Is invited to In
dictate concrete cases where recognized
principles OF international law have
been or may be violated, as ''in such
cases 1t (the Mexican government
will be disposed to repair such viola
tons" The right of an individual to
contract away his right to diplomatic
protection by his government Is IN
sisted upon The agreement OF 1923
| is held to have been a mere state
| ment Of the purposes of President
Obregon, under whom It was negoti
ated, without the qualities OF a prom
| Use" binding upon President Gales
The retroactive nature Of the new laws
cannot, according to Minister Saenz's
viewpoint, be objected to until IL
produces confiscatory or other harm
| full effects.
So matters stand today. with the
version clauses of the new laws IN
volve "a forced exchange Of a greater
for a. lesser estate" and that it is its
duty to protect its citizens from such
an invasion Of their rights. and Mexi
co replying that a definite change ir
the ownership system hitherto In eff
feet in that country must and will be
engineered. and that the new laws
and regulations essential to this enc
will not be changed. but that any
harm which may result to American
citizens from their application can bt
repaired under those laws.
Under the disputed Mexican laws
a failure on the part of American OF
interests in that country to make the
indicated exchange of vested I'ght!
for flfty-year leases by tor ,.rov
will automatically cancel their vestet
rights. Yet. with the strong lacking
which Secretary Kellogg has affordes
them, it Is highly probable that man,
win refuse to make the exchange
They will then hold their original con
, cessions: the Mexican government wi
claim forfeiture Of the properties. an
, It will devolve upon the United State
] Government 70 aCk-
~ Several courses are open. The ivy