Evening star., 1938-05-13

All over Mexico the attitude of
President Roosevelt, Secretary Hull
and Undersecretary Sumner Welles
has been heralded as a big-hearted
approval of the confscation policy Of
the Mexican government This is not
altogether justified by what has been
said here officially, but there can be
little doubt that the MeXicans know
sympathetic word when they hear one.
President Roosevelt, instead Of being
Mortified by the seizure of American
property in cOntraVentiOn of every
principle of justice, made a casual
comment TO the press about how the
oil properties should be paid for. He
indicated something about prudent
investment" which is just the same as
If he had sanctioned long drawn out
discussion of what was fair value"
1t certainly was accepted by the Mexi-
cans as a loophole for delay and de
ferred" payments instead of cash.
Britain Makes Demands.
Meanwhile the government of Great
Britain, which stands by her citizens
and does not condone theft in any part
of the world, has served notice on
Mexico that the seized oil properties of
British citizens must be paid for i'm
mediately. The United States would
find herself in very awkward posi-
ton indeed if Great Britain with
drew formal recognition from the
Mexican government and then began
seizing Mexican oil tankers which
attempted to carry the stolen oil from
Mexico to foreign ports.
1t is declared by those familiar with
the Mexican situation that President
Cardenas has been put in an awkward
and untenable position by the labor
leaders of Mexico. First they made
600 demands upon the oil companies
and through a so-called national
labor board in Mexico City secured
an order compelling the oil companies
to pay wage increases amounting vir-
tually to double the companies earn
ings. And when this could not be met,
President CardenaS found himself
forced by labor leaders to seize the
foreign-owned properties.
The trouble might have been avert
ed if the American Government had
been mindful of the rights Of her
nationals and If prompt protest in
vigorous terms had been made. Even
today the Department of State ap-
pears to have dawdled along without
making manifest to Mexico that
American properties cannot be seized
without making prompt payment for
them. And it is known that Mexico's
financial condition Is such that her
government cannot pay foreign
claims.
Points to Insecurity of Holdings.
If American oil properties can be
seized with impunity in Mexico and
no payment made, then American
property of all kinds in foreign coun-
tries suddenly becomes insecure and
this involves many billions of dollars.
Foreign trade is considered one Of the
essential parts Of any sound recovery
program in America, but there can
hardly be any tendency on the part
of American citizens to invest abroad
II their own Government refuses to
protect such investments with the Or
dinary safeguards Of international law.
Likewise, it is doubtful if economic
conditions in Mexico can improve as
long as the business interests of the
United States have the notion that
the Mexican government is acting ar
bitrarily with respect to American
property. All the hard work done by
the MeXicans themselves to foster
tourist trade and good relations with
their Northern neighbor will go for
naught If the Department of State
and the Mexican government do not
soon reach a satisfactory settlement
Of the oil problem which is as I'M
precedented as it is dangerous to fu-
ture investments abroad.
Low Pay Argument Falls.
All sorts Of trumped-up excuses are
being proclaimed by those defending
the Mexican action, one to the effect
that the oil industry has paid low
wages, when, as a matter of fact. the
data from the Mexican governments
own department of labor for 1886 show
that the average daily wage in the
oil industry was more than double that
which was being paid in other Mexican
SynI c+vinc ilyoy-icn tho itor,,c fl,r-
nished free to workers by the Oil COM
panies, including housing, light, edu-
cation, transportation, medical and
hospital facilities for the family of the
worker. amounted to the equivalent of
about 36 per cent over and above the
basic wages actually paid by the oil
companies.
Attempts are being made by the radi-
cal labor leaders in Mexico to enlist the
support of American labor organiza-
tions for the communistic plans being
Matched in Mexico. 1t is regrettable
that the Roosevelt administration has
not seen fit to speak vigorous word
for the protection of property as
against confiscation in such a public
manner that the Mexicans could not
possibly misunderstood.
The Mexican people are in the midst
of social revolution and they should be
left to work out their own problems,
but recognition has always been ex-
tended or withdrawn by the Washing
ton Government on the basis of COM
MI xv,,fl, ;v,ka 1o, IL
it may seem easier to seize than to re-
spect property-and the principle of
confiscation is not wholly without its
defenders inside the New Deal-in the
long run, economic stability and en-
ployment for the workers under
capitalistic system is better served by
adherence to legal rights and the Ten