Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-11
POLITICS SWAPS
| GALES IN OIL ROW
Possible Yielding to u. S. Held
to Be Based on 0bregon's
IN Presidential Aims.
BY DAVID LAWRENCE.

Back of the dispatches from Mexico
CITY. indicating a feeling OF optiInlsii
that a way will be found to adjust the
oil controversy with the United
States. is the knowledge on the par
of the Mexican authorities that uis
turbed political situation VIII lhterlele
with the campaign in which Aware
Obregon is scheduled 10 come paSh u
the presidency in 1879. J..
The Mexican government trled II
1918 to put into effect the retroactive
clauses of the constitution and was
baked by President Wilson. Inc
same effort begun in 1925, now mas
been halked by President CoolluSe
Mexico has had in the last two weeks
a clear statement OF the feeilns VI
the Washington Government, opehlhs
TO her the paths of friendship "a
aloofness. She has apparently CHOSEN
the former.
No Threats Made.
No threat of war or Intervention
was made, but certain factors coulQ
have been brought into action Whlch
would have been unfortunate for the
Mexican administration One was the
lifting of the embargo on arnls-some'
thing that is feared far more thaI
intervention. The other was the Doy'
colt by the oil companies themselves
which was beginning TO diminish
Mexican revenues and spread unelh
ployment. h.. the
The latter came al a time when the
figures indicated for 1927 large over
production of oil anyhow. But reVoiu-
lions are bred when the Federal pay
roll is cut down, and Mexico's ofnclals
began to realize that the hght WIN
the oil companies was going TO De an
expensive one. a.: .,
Also there arose the question ol
transporting oil If the ianus WEI
confiscated. The companies VIZ
claimed their properties were belng
confiscated are under no obligation TO
lend their tank steamers or pipe INES
10 companies which fall in with
program of confscation.
Pressed by Radicals.
President Gales has been pressed by
no deal gro,,ps. as well as by business
interests seeking to obtain possession
of confiscated lands. If he can remain
IN power until the next presloenlia.
election of 1928, then his good irieno
and ally. Aware Obregon, can easily
be elected. If a revolution is 10 pe
permitted then the whole situation pe
comes COnIuScu anu AoCiAoA wv
chances are imperilled.
Aware Obregon is a business man
and he saw during his first administra
tion how troublesome the oil question
could become, so he allowed 1T to dri1'
along without bringing matters 10
climax. His advice unqueStionaDiy
has been sought by President Gales
in the present emergency ana there Is
every reason to believe that he has
suggested compromise.
President Coolidge has indicated that
IL the main issue, confiscation, could
be settled there would be no difficulty
in reaching an understanding on the
collateral questions growing out OF that
controversy.
II. S. Officials Skeptical.
The press dispatches, which go Sc
FAR as to say amendments may be
proposed to the Mexican constitution
no as to eliminate any construction
OF the constitution as retroactive
sound too good to be true to Washing
ton officials, though they realize thai
such a course, and only that, will put
the relations between the United
States and Mexico on a permanently
satisfactory basis. Even if the amend
ments are not Immediately adopted
the effect of a recommendation to thai
effect from the Mexican chief execu
tive will be to prevent considerations In
the interim.
In a nutshell, Mexico is faced with
the possibility OF an embargo on arms
being lifted, so that all factions car
get munitions, and she is faced with
a ban on her borrowing of money In
the United States unless she respects
the rights, lawfully acquired, OF for
eign nationals.
Her decision to follow a policy OF
Cancellation rather than hostility to
foreign capital, as reported from
Mexico City, is hailed as a sign that
economic influence is more powerful
factor nowadays than military threats
BORAH DEFIES CRITICS.