The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1927-05-17
CONTROVERSY IN
MEx|C0,S 0,SUBJECT
!, CHURCH REPORT
Department Of Federal Coun-
Gil of Churches Concludes
Its Investigation.
THOROUGH PROBE IS
MADE GIL, LAND LAWS
Con6scatory F eatures e Ex-
plained-Both Sides of
Issue Are Stated.

NEW YORK. May 1.-THE oil and
land controversy between the United
States and Mexico rests upon a rea,
grievance on the part of American
interests, but not one that justfies,
under such sanctions of international
law, any sort of forcible interven-
tion in the internal affairs of that
nation, states a report made public
today by the Department of Re
search and Education of the Federal
Council of Churches.
The report is the result of several
months investigation by the Depart.
ment of Research and Education and
is introduced as a strictly informa-
tional document" which disclaims
any intention TO suggest what course
either government should follow.
The petroleum law of 1926, says
the report. is found to have con-
fiscatory features and to be at var
ance with the understandings arrived
at in 1928 as a prelude to the re-
cognition of the Mexican government
by the United States. The report
points out at the same time that
such violence as has been done to
American property rights arises out
of sovereign acts of the Mexican Re-
public in the adoption of her con-
stitution and the enactment of dome
site legislation, and that in the pre-
sent state of international relations
each nation, including the United
States, demands the right to be
the Judge of its own domestic laws,
always subject to the limitation that
If the operation of these laws re-
~ I'm a taIo of
international law the victim of any
resulting Injustice may demand.
through his government, redress ii
forms prescribed by international
law"
Major Points Involved
The department investigated the
oil and land situation in all its
sphases and presents what it con-
siders to be the major points of the
controversy The report says:
THE question at issue in the oil
dispute is one of property rights.
The government of the United States
claims that under the Constitution
of 1917 and the law of 1925 prop
erty rights are being taken from the
oil companies without compensation
that article 81 of the Constitution,
This point involves rights under
Mexican law and under international
law.
1925 Oil Law Confiscatory
"The oil companies believe that
the law OF 1925 is .confiscatory, no
matter what may be the decision of
the Mexican Supreme Court. But in
ternational law is the same for all
q
be treated as invalid under rule ct
International law and inapplicable to
American owned property, an act OF
Congress or of a state legislature
may also be called into question II
a foreign government believes 1t to
be contrary to a precept of interra-
tional law
while there is no organ of in
ternational law which can control the
legislature, executive and judiciary
of an independent state and declare
their acts invalid, the operation OF
such acts may give rise to claim
for damages. The oil companies con-
tend that in their case damages will
not constitute adequate redress. They
maintain that they want the prop
ertv. not an award of damages which
an international arbitration tribunal
may grant but actual payment OF
which would be problematic.
Land Controversy
With reference to the land con.
troversy, the report says:
Prior to the controversy over the
petroleum laws, which has recently
oyershadowed everything else. the
land distribution program was the
occasion for considerable dissatis-
faction on the part of foreign in.
vestors and for controversy between
the governments of Mexico and the
United States. Complaints made
against the government of Mexico
CONTINUED on Page Seven.)