Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-05-15
London Replies to
Withdrawal of
Mexican.
POPULAR SUPPORT
OF CARDENAS RISES
Press Joins Workers to
IndOrse Break With
England.

Merico Friday night recalled its
Minister to Great Britain as result
OF abrupt British demand early last
meek for payment OF PREPARATIONS
TOR damages to British citizens
betpeen 1910 and 1920. Incident
,ras Gilman OF bitter controversy
begun ,eith Mericos seizure OF oil
properties March Is.
Ev tie Associated Press.
MEXICO CITY, May 14.-Owen
st. Clair O'Malley. Great Britain's
Minister to Mexico, announced to-
night he had been recalled by his
government, completing the diplo-
matte break between Britain and
Mexico.
Britain's action was in response to
that of Mexico last night in with
drawing Primo Villa Michel. Mexican
Minister to London, because Of
Britain's "unfriendly attitude" to-
ward Mexico
Recall OF O'Malley had been ex-
pected in Mexican circles as a conse-
quence OF the Mexican step.
Consul General in Charge.
Mr.. O'Malley explained that his
government had instructed him to
withdraw himself and the diplomatic
staff from Mexico and to leave the
Legation in charge OF the British
acting consul general, J. Dalton
Murray.
The Minister said he would leave
for London by way of New York
as soon as he finished packing.
Commenting on reports OF anti
British feeling in Mexico. Mr.. OMal-
ley said he had been treated with
absolute kindness and courtesy" and
that he had no complaints from
British subjects" Of rudeness on the
part Of Mexicans.
Cardenas Gains Support.
Mexicos diplomatic break with
Great Britain apparently strengthen
ed popular support of President
LAzaro NJ Cardenas in his program
of naturalization Of foreien-owned
oil properties. Mexico's grave oil
problem. which led to recall OF the
Mexican Minister to London, re-
manned unchanged, however.
The press, workers groups end
others spoke in patriotic phrases in
dorsing the Presidents action. but
the country's most pressing problem
one on which many observers be-
lieved the fate Of the Cardenas ad-
ministra ton rests-remained unsolved.
This problem, briefly, was finding a
market for the country's government
produced oil, output of which has
fallen sharply because of lack Of
markets since March Is. when the
President appropriated British and
American oil properties valued at
$400, 900, 900.
Peso Slumps Lower.
Today the peso slumped from to
10 points, although supporters Of the
President believed the economic turn
to have been counter balanced by a
revival Of nationalistic favor in the
country after the appropriation.
Several times recently the govern
ment has been on the verge of an
nouncing contracts had been signed
for foreign sales. None appeared, how
ever, and reliable quarters said today
that nothing but small deals were in
sight.
Until she disposes of her surplus
oil-Mexico has exported roughly so
ont NJ nct Sc
Observation-Disclosures must restrict
their operations to domestic needs.
This means a loss of II per cent of
federal and state revenues which oil
used to pay, a lack of foreign credits
to bolster failing currency, the end
of present moratorium payments
abroad and general disruption OF
commerce.
Positions Different.
The breach with London accentuated
the different positions of London and
Washington in the oil controversy. In
which they at first appeared to have
been in the same boat.
Each nation took q strong attitude
toward Mexico after seizure of the oil
properties, until March 80, when
United States Secretary of State Cor
dell Hull in Washington formally
acknowledged Mexico's right to take
the appropriation step.
Britain, meanwhile, on April 8. de-
livered q firm note to Mexico terming
the appropriation denial of justice, -
(see ENVOY, Page A-4.)