Evening star., 1938-04-02
MEXICAN OIL CRISIS
MAYDEEPENAM AM|TY
Hope for Better Relations
Follows Publication of
Hull Statement. g
BACKGROUND

BACKGROUND
Tense international situation rds
precipitdted last month By action
OF Merican government in taking
oper rich oil interests of foreign
o,DnerS United States reciprocated
by Curtailing Siluer purchase policy
Uhich had been so profitable to
Merico Latter government since
has giren pledge payment UW be
made for appropriated oil proper
ties.
By the Associated Press.
Persons close TO the State Depart
ment expressed the opinion today that
out of the oil controversy between
the United States and Mexico would
come permanent better relationship
between the two nations
Their statement followed publica-
ton of warm exchange of friendly
sentiment between President Cardenas
Of Mexico and Secretary of State Hull
They said the United States was
proceeding toward Mexico in the
friendliest and most cautious way
allowing President Cardenas great lee
way so as to avoid not only friction
between the two countries, but also
between President Cardenas and his
people.
Two things were said to have done
much to win President Cardenas
friendship in the present ituation.
Legal Right Acknowledged.
First Mr. Hull's Acknowledgement
that the Mexican government had q
legal right to appropriate the Ameri-
can oil properties
Second, the reported view of Presi-
dent Roosevelt that the valuation the
United States had in mind for the
oil properties was the money actually
invested, less depreciation.
Officials of the l3 American COM
panles whose properties were taken
over by the Mexican government
March l8 have estimated their value
at sl50,000,000. No information was
available here as to how much
actually has been invested in them.
President Cardenas' note, made pub.
lie last night, assured the United
! States that Mexico would honor hel
obligations. He did not state now
Mexico could pay. Dispatches from
- Mexico City, however, said officials
had indicated Mexico would seek te
pay the debt in OIL
Mr.. Hull, in reply, expressed belief
a rapid, satisfactory and equitable
solution" of the problem raised by
appropriation of the oil properties
could be reached
Sovereignty Held Reaffirmed.
Cardenas said the United States
attitude "reaffrms once more the SOW
erignty of the peoples of this conti-
nent which the statesman of the mos,
powerful country of America, his eX-
cellency President Roosevelt, has sc
enthusiastically maintained"
The Mexican nation" Cardenas
said, has lived in these last few days
through moments of trial in which
it did not know whether it would nave
to give rein to its patriotic feelings
or to applaud an act of justice of the
nelghborlng country"
His reference to patriotic feelings
was interpreted here as meaning a
determination to resist the United
States if this country had insisted on
strong measures.
Today said Cardenas, my coun-
try is happy to celebrate without res
ervations the proof of friendship
which it has received from yours and
which will be carried in the heart OF
its people,"
Mexico he added, has always
wished to maintain its prestige, carry
ing out its obligations. but elements
which did not understand Mexico
placed obstacles in the way of this
high and noble purpose.
To-day a new dawn breaks on its
future with the opening to it of the
doors Of opportunity
OIL MANAGERS DISGRUNTLED.