Evening star., 1928-10-28
BY GASTON NERvAL.
Authority on Latin American Affairs.

Zens against the petroleum Law
which the Columbian govern
ment has recently put into ef-
feet has almost given rise to new
misunderstanding between the Latin
American countries and the United
States.
This law in one of its principal clauses
expressly stipulated that the vast Pc
troleum concession, otherwise known as
the "Barco concession" to which prop
erty legal title is alleged by several
North American capitalists, has become
extinct. In order to support their con-
tention, the supposed heirs to the
Barco concession have looked forward
to the intervention of the United States
Government in behalf of their inter-
eStS, which they claim have been con-
fiScated without regard to their prop
erty rights. The Colombian government
has emphatically stated that the ques-
tion itself is one involving private rights
over which the Colombian courts have
exclusive Jurisdiction, thereby eliminat-
ing the possibility of foreign political
intervention. To that effect the gov
ernment of Bogota availed itself of the
opportunity offered to acquaint the con-
tinent at large with the true facts Of
the controversy which for so many years
has been pending, and sought to es-
tabliSh that degree of justice to which
the parties involved are entitled.
The manifestations of the Colombian
authorities lead but to one claim, that
being that those American capitalists
were defrauded by individuals who
could not legally sell or assign their
titles. For this reason the Colombian
government is declared to be fully with
in its rights in disregarding any and
ell property interests so acquired.
Refuses to Interfere.
The State Department in Washington,
realizing after a thorough study of the
matter that the Colombian government
acted in good faith, has been the first
to reject the idea of any political in
preference Had the claimants been
within their rights, no doubt America
would have exercised its powerful influ-
ence before the Colombian government,
faithful as it is to its open and well
known policies of protection and sup
port of the interests of its citizens in
foreign countries. Thus the fact that
the Washington Government refuses to
interfere speaks well of the correct at
titude taken by the Colombian authori-
ties in the matter.
In passing its recent oil law, Colom-
bia is following the footsteps of several
South American countries who have
adopted the modern policy of nation
alizing their natural resources. Whether
or not this policy is good one, it has
found favorable support in certain
Latin American governments perhaps
because it constitutes a source of in
exhauStible wealth to the ones who fol-
low it.
That the means necessary to reach
that naturalization are very different
and distinct cannot be denied. It's
IL -,
and deciding upon the only means that
is more favorable and advantageous to
each particular country. Fascism in
italy has fulfilled its mission in con-
trolling, for the benefit of the state,
the natural resources of that country.
Danger of Naturalization.
The main danger in carrying out
property naturalization by the state
Is that it would conflict with prior
titles justly acquired by private individ-
uals The radical and hasty enforce
ment Of this law by governments would
very easily impair legal rights created
by prior laws which imposed no re-
Strictions upon property owners engaged
in the operation and improvement of
the SubSon wealth. In this connection
it suffices to bear in mind the Mexican
situation. On the other hand, It, must
0E COllSAASlGQ b14db III IIlGkzy FAlSGEt1ItS
the protests Of private property holders
are but clever exaggerations to seek the
backing of foreign governments, thereby
nocking the laws of those countries.
The whole problem deserves the consid-
GRAFTON of the most unbiased minds, as
well as the ability to realize when the
just claims of private interests have
been careleSsly jeopardized or impaired
by the government authorities and
liz 1-,,k 8
Vaccinations of capitalists who seek,
through their great influence. the set
tlement of controversies which have no
legal standing.
Petroleum Situation.
From among those natural resources
which that policy of property national
ization tends to protect, none is as i'm
portant or as much the subject of dis
putes as is the petroleum. The indus
trial value of petroleum, which day by
Gay is more and more replacing coal
and all other fuels which move the
wheels of industry, has been made the
object of great economical interests.
Hence the desire of the principal powers
to assure themselves of abundant oil
reserves even though they may be To-
Gated in far-distant countries. Those
real "cruSades'' in which the strong
gagged in the pursuit of oil lands is a
further proof of the "oil fever" which
today envelops the world. 1t stands to
reason, therefore, that those countries
who possess so valuable a mineral are
always eager to intervene or at least
express their great interest in its pro-
duction. That is why strict measures
for the preservation of oil have been
successfully taken by France, Italy,
Spain, Argentina and Chile.
What Happened in Mexico.
As to Latin America, where the oper-
alton of oil wells is new discovery,
Mexico was the first to adopt nation
alization. However. the course fol-
lowed was so radical and abrupt, that
such attitude provoked, as it was to be
expected, conflicts of more or less
serious nature. The government i'm
posed its will by undertaking, at one
stroke, TO suppress the property rights
of oil concessions. Even old-eStablished
enterprises, with all their property
titles legally in order, were threatened
by the hasty measures adopted by the
authorities whe aimed at putting out
from the Mexican soil all foreign in
terestS. As a result, diplomatic inter-
vention followed with view of pro-
tecting the interests of American, Eng
1ish and German citizens. 1t was only
after long time that the Mexican
government recognizing the vast inter-
ests OF American enterprises in Mexico,
on one hand, and the United States
having acceded to a reduction of the
concessions to a term of so years, on
the other, the long controversies be-
tween these two nations have been re-