Evening star., 1938-05-14
OIL SETTLEMENT
BY j. s. H|NDERED
Washington Is Embarrassed
by Effect Upon Good
Neighbor Policy.
BY the Associated Press.


Informed persons represented State
Department officials today as disturbed
by Mexico's break in diplomatic re-
lations with Great Britain and con-
cerned lest it cause this country en-
barrassment.
The possibility of any such step
as British naval demonstration in
Mexican waters was said to be re-
mote, but persons close to the de-
partment expressed the opinion that
in any event the rupture would make
more difficult, and possibly delay. a
settlement of American claims for
appropriated oil properties.
The United States and Great Britain
have exchanged no views on the diplo-
matte break, Secretary Hull said at his
press conference. He declined to con-
slider the question as one which might
affect the United States dealings with
Mexico, in relation to the oil prop
critics or otherwise.
Valued Up to $150, 200, 900.
These properties have been valued
unoficially as high as 0,000, 900.
President Roosevelt. however. has in
dicated this Government would not
support claims for more than the
sum actually invested.
The British properties appropriated
March 1S along with those of Amer
lean oil companies were valued at
about $250,000,000
The United States Government ad-
vised Mexico it would expect that
government to pay for the properties,
but conceded Mexico's right to ex-
propriate them.
This, coupled with President Roose-
velt's subsequent remarks as to what
payment would be expected, contrasted
with the British attitude.
Britain asserted a conviction that
the appropriation had been dictated by
political considerations and charged
justice had been denied the oil COM
panies in the procedure followed.
Speculate on Policy. >,
Observers here speculated on the
possible effect on the prestige of the
administrations good neighbor" policy
If Britain's action resulted in return
of the appropriated British properties.
Most believed that if this were done,
the United States would demand SINH
lar treatment Of the properties OF its
nationals
There was speculat ton. too, on the
possibility that some totalitarian power
might seize on the situation to
strengthen relations with Mexico and
arrange for purchase of oil produced
from the properties.
Persons close to the State Depart
ment said it was unlikely this country
would offer to mediate the dispute
between Mexico and Britain.
No Need to Consult u. S.
Asked whether Mexico had con-
suited the United States before sever
ing diplomatic relations, State De-
partment officials said that at first
sight this was matter directly be-
tween Mexico and Great Britain and
they did not see that Mexico was re-
quired to consult this country.
When Britain first adopted her
strong attitude toward the expropria-
ton OF the British oil properties, some
officials believed this might help the
United States position because it
would better contrast the good neigh
Dor" attitude of the United States and
induce the Mexican government to
adopt more conciliatory view toward
this country. The matter, however,
has now gone too far to have this ben
ef1cial effect, it is thought.
The United States may be placed in
the trying situation of being asked by
Mexico to handle her representation
with Great Britain.
Informed observers did not believe
Great Britain would take any re.
taliatory steps beyond placing a boy
colt on Mexican oil.