Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-31
i. S. AWAITS OVERT
ACT BY MEXICO IN
OIL LAND DISPUTE
State Department Still
Hopes Way Out of lmpasse
May Be Found.
LIKELIHOOD OF SEIZURE
BY GALES is DOUBTED
Withdrawal of Ambassador Men
toned as Possibility in Case
of Confscation.

In the failing light of the old
wear. the American State Department
Turned anxious eyes to the south to-
day. honinc almost against hope for
some sign of peace and conciliatlon in
the two ajor controversies trat
cloud the New Year horizon OF Latin
America.
Roth in Mexico. where new mineral
regulations are to become eHectiVe at
midnight over the protest of American
mining interests, and in Nicaragua,
where the tenure of an Amerlcan-rec-
ognized President is imperiied by the
armed forces of his enemies, Amerl-
can diplomacy has failed thus Tar to
produce any of the results hoped for
by Washington.
In both of these countries, to all
outward appearances, the issue has
passed out of direct contact with the
American Government and into the
keeping of the contending groups
themselves.
Correspondence Published.
Some weeks ago the State Depart
meht made public its correspondence
with the Mexico City authorities over
the new land and oil regulations, dis
closing an impaSSe which Ieft the
American oil men to decide for them
selves whether they would accept the
drastic proposals of President Gales
or remain passive under a threat of
being deprived of their holdings by
the Mexican government.
In Nicaragua, although American
troops are ashore, Washington vir>
tually has declared neutrality between
its favorite and his opponent.
Whether any opportunity for
further diplomatic move will present
itself remains problematical. So far
as Mexico is concerned, the Washing
ton government appears content for
the moment to wait and watch. The
oil men conferred in New York yes
terday and adjourned without an
nouncing any recession from their
refusal to accept the regulations that
are to be invoked at midnight Bss the
Gales government and President
Gales himself announced there would
be no extension beyond New Year.
covert Act" Awaited.
1t is pointed out, however, that the
drastic measures proposed by Mexico
City still lack actual execution. III the
oil companies persist in their refusal
u pN lIIt iSdutl liiCy VIII
become liable to seizure. but will not
pass automatically into the possession
of the government. Some actual step
to take over the properties, taking the
form of an covert act" probably will
have to be awaited before the issue
really reaches crisis.
There have been proposals that
when the covert act" occurs, the
United States might withdraw it's AM
bassador at Mexico City as a further
evidence of protest. But on that sub
lect Washington officials are keeping
their own counsel. They evidently be-
lieve it is within the range of possi-
bilities that the covert act" never
will be committed.
Meantime, Mexican-American rela.
tions in general show no signs of i'm
provement. Charges that Mexico City
has aided directly the Sacasa group
in Nicaragua, opposing by armed
force the Diaz government recognized
by the United States, have appre-
ciably increased the tension between
Washington and Mexico City.
kidnapping Is Protested.
A part of the picture also is the
fact that outrages against American
citizens in Mexico, against which
many protests have been made in the
past few months, are continuing
Today Ambassador Sheffield advis.
ed the State Department that he had
handed an urgent note to the Mex
lean foreign office, demanding the re-
lease of J. w. Wiley and +. B. Con.
ners, American employees of the San
Francisco Mines of Mexico. Ltd, who
were captured by Mexican bandits on
December 2S.
The Ambassador cabled that attor-
neys for the San Francisco Mine Co,
in Mexico City had informed him
Wiley and Corners We're captured
while working the company's prop.
erty at San Francisco Del Ore, near
Parral, Chihuahua. They were held
for ransom, the bandits demanding
40, 900 pesos or dollars" for their de.
livery.
An urgent note" is resorted to in
diplomacy only when the complaining
government means to put behind its
words great weight of official pro
test.