Evening star., 1938-04-09
MEXICO OIL BOND
PLAN BROADENED
Economic Redemption Issue
Would Be Subscribed
in Capital.
I3y ths Associated Press.

BY the Associated Press.
MEXICO, D. F.. April s.-The is
suance Of economic redemption
bonds in the federal district was con-
templated today as means OF helping
relieve the financial situation pre-
cipitated by appropriation Of the
foreign oil industry.
A committee headed by DR.. Jose
siurob, chief of the Federal district
department, drafted plans for floating
the bonds, 1t was said that it would
be the patriotic duty" of federal
district employers and workers to
subscribe.
Congress Meets Monday.
This plan was brought forth while
Congress prepared to convene Mon
day to vote a l00.0oo,000 peso (about
s24,75o00o bond issue to compen-
safe the II British and American oil
companies for holdings nationalized by
President Lazaro Cardenas.
Great Britain yesterday demanded
return to the companies Of oil prop
critics which the British value at
s25o,000 900. The Mexican govern
ments reply to the British note will
be delivered early next week, informed
sources said.
Offers Are Studied.
The government continued studying
offers received from foreign concerns
interested in Mexican oil. No agree
nent has been reached with any one
authorities said.
Under the Siurob plan for economic
REDEMPTION" bonds, every worker IN
the district would be asked to con-
tribute one days pay monthly for the
rest of the year Employers Woulo
contribute three times that much
Those complying would be given GER
tificates which they would be expected
to display.
Britain Embarrasses u. ,.
Britain's strong note to Mexico oe-
r,anding return of the eXproprlateo
British oil properties dropped serious
nroblems into the lap OF the State
Department last night.
Nv adopting a menacing attituoe
toward Mexico's seizure Of the British
Oil companies, Britain placed the
Tinted States in a delicate position.
Previously, in acting toward MEXICO
Great Britain has been content to fol-
low the lead taken by the United
states, which generally has been stern
Now .he seems determined to strike out
on her own.
The British attitude was described
Nv offcjals as almost diametrically op-
nosite that of the United States. This
country has formally acknowledged
Mexico's right to appropriate the OIL
wells provided she gives reasonable
compensation.
Seizure Held Unjustified.
Britain denies the right and says
the appropriation was inherently un-
justified"
The United States has informally
indicated this Government will not
press claims for full compensation OF
the oil companies at their own val
uation, but only at figure represent
ing the original investment less de-
probation. Britain, on the other hand
wants the companies turned back to
their owners.
Her move did not come as a surprise
to the State Department, but it was
nevertheless unwelcome. Persons close
to the department did not believe 1t
would be successful. This is the strong
arm attitude, they said, which the
United States has adopted in the past,
and it has not worked Now the United
States is trying a new experiment.
Menace to Experiment.
There was a feeling here, however,
that the experiment is prejudiced by
Britains action 1t is realized that
Britain does not have the same good
neighbor' preoccupation as the United
States, but British action which
would interfere with out policy is most
unwelcome to American officials.
On the other hand, Britain is un-
derstood to believe that the American
policy toward Mexico will fail Of pro-
ducing results.