Evening star., 1927-09-02
MEXICAN OIL ROW
ADJUSTMENT SEEN
IN GALES SPEECH
Officials Here Hopeful Courts
Will Hold Disputed Land
Laws imperative.
"INDECISION" INFERENCE
AGAINST U. S. DISPUTED
Confscatory Action Not Regarded
as Final Unless Sustained by
Supreme Tribunal.
BY DAVID LAWRENCE.

Although official Washington does
not relish the inference in the speech
of President Gales of Mexico that the
'indecision" of the United States is
responsible for the present regret
table, situation, there is disposition
to read between the lines a tone of
optimism for the adjustment of the
pending controversy over oil and land
laws.
When Mr.. Gales says that not
single case of injury of foreign invest.
ment through the operation of the
new laws has been proved. the i'm
preston is derived here that he means
by the same token though in a mega
tive way. to give assurance that Mexi.
co does not intend to confiscate Ameri.
can property.
The use of the word proved" is
noted, and it is believed that President
Gales regards the confiscatory action
| of his department of interior as hardly
| final step, because the Federal Su
preme Court has not yet sustained the
action. In other words. if the Mexi.
can Supreme Court should. by series
OF decisions. invalidate what the de-
partment of interior has done. the
Mexican Presidents statement will he
in effect that no confscatory action
can be proved against Mexico He re.
CARDS the litigation as merely a de.
bate on the meaning of existing laws.
Indecision Rests With Mexico.
The "indecision" TO which Mr.
Gales refers is undoubtedly the atti.
tude of watchful waiting which the
Coolidge administration has adopted
toward Mexico. The Government
| here has said all that il is going TO
say on the legal and technical ques.
| tons OF law that have arisen, and is
waiting to see exactly how Mexico will
/ fulfill her promises that she does not
! intend to confiscats American oil
| properties.
| While here and there instances of
/ contiscation has heen brought to the
! attention of the Mexican authorities,
| the American Government realizes
| that the broad issue is still in the
courts. If there is any indecision, it
| is in Mexico.
There are many intimations that
| Mexico is concerned over the prObabis
policy Of the United States If the
! court 8 decision should be adverse to
! American interests, but on the whole
officials here were gratified that the
! speech of President Gales recognized
| fully the Importance of good relations
| between the United States and her
| neighbor. 1t is realized also that the
Mexican President for home ccnsump.
! ton could not make a speech which
| would show that Mexico had yielded
to American pressure.
Basis for Understanding.
On the whole. those who are IA.
miliar with Mexican affairs looked
| upon the speech of Mr.. Gales as con-
tanning the basis of an understanding,
provided, of course, that the subordi-
nate officials in the Mexican govern.
ment did not resort to bubbles over
legal phrases. For many months. for
example. the Mexican officials have
been saying that they never had nor
| never would ''cOnfiscate" American oil
properties. This only meant, however.
that the Mexican government did not
regard the taking away of legal title
and giving in exchange 50-year
lease as meaning "confiscation
The American oil companies. on the
other hand pointed out that under
Mexican law only Mexican corpora.
tionS could lease oil lands so that the
move was, merely a step to force
American companies to incorporate
under the new Mexican law, when
they would, of course lose their rights
as American citizens and be subject to
whims of changing Mexican admins.
trations.
1t is for this reason that when the
Mexican President says no concrete
evidence of injury to American prop.
critics through the operate OF oil
laws has been proved" the disposi.
ton is to believe that he meant that
the Supreme Court of Mexico had not
yet upheld the action of the Mexican
department of interior. From this is
cleaned the hope that the Mexican
courts, which are at times responsive
10 public opinion, may agree with the
view expressed by President Gales
ana hold article q to he imperative
20 tar as property rights acquired
legally before 1917 are concerned.