Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-05-15

and demanding prompt return of the
properties.
Second Note Sent.
On April IL Mexico rejected the
British contentious, and on April 81
Britain sent a second note, substanti-
ally a reiteration of her first
In contrast, on April %, PreSi-
dent Roosevelt and Mexican officials
exchanged fluctuations, and diplo-
matte tension over the oil incident
was termed buried.
Next. on May IL, Britain, on
another tack. demanded Mexico make
immediate payment of an INSTALL
ment Of 370,962 pesos (about $685.
103 at current rates. due London for
British losses in Mexican civil wars
between 1910 and 1920.
Britain here charged specifically
that Mexico was following policy of
apparently discriminatory" treat
ment in favor of the United States.
Claims Payment Made.
This American angle was continued
beneath the surface right up to the
final break. Minister O'Malley was
given a check for the separations
: payment just before he was advised
the Mexican Minister was being re-
called from London. and Mexico is
sued note announcing the break
with Britain in which she replied to
Britain's stand in this manner:
Il (Foreign Minister Eduardo Hay)
allow myself to call to the atten-
ton of your excellency (OMalley,
inasmuch as 1 deem it to be peril
nent, the fact that even powerful
states having at their command
abundant resources cannot pride
themselves on being up to date in
the payment of all their monetary
obligations
This was interpreted as a slap at
European nations owing war debts
to the United States. Britain has
defaulted on these debts for five years,
the last passed inStallment being one
Of $l22.670.7 65.05 due last December
Is, when Britain owed total of
1894, 486, 367.03 in war debts to WASH
ington.
Hay today handed the French and
italian Ministers checks for 127,-
1S42l pesos and 29,41492 pesos re-
spectively to cover unpaid INSTALL
ments due January l to their ma
tionals for revolutionary war claims
Neither Italy nor France had pro-
tested non-payment, as Britain did.
Return of PrODerties Asked
NEW YORK, May IA (P).-Immedi-
ate return of appropriated Mexican
oil properties to American companies
was urged today in a booklet printed
for public distribution by four COM
panies.
A spokesman for the companies said
the statement, which charged the
Mexican government with prejudice,
bias and undue influence" would be
filed with the American State De-
partment in Washington and with
President Lazaro Cardenas of Mexico.
Illegality Charged.
After tracing the history of the seiz-
ure by the Mexican government last
March 10, the booklet charged the
appropriation was illegal and that the
government was in no position to pay
for the properties in full.
Huasteca Petroleum Co., Standard
Oil OF California, Mexican Sinclair
Petroleum Corp. and Penn Mex Fuel
Co. elaborated in preparation of the
pamphlet. A foreword said the state
ment was intended to assure public
understanding of the situation"
1T Is the contention of the COM
panies," the statement said, that
there has been no compliance with the
prerequisites of valid appropriation:
First, compliance with established
legal procedure.
Second, immediate payment of full
value in cash."
Saying compliance with the first
was now impossible, the companies
continued:
mot only Is the Mexican govern
ment financially unable to pay full
value in cash and Immediately, but
1t has evidenced no indication of so
doing-except as the appropriation
decree mentioned that payment should
comprise percentage of oil to be
produced from appropriated proper
ties" ..-
Seizure of the foreign holdings ere
ated q situation adverse to the people,
workers, government and to the oil
companies, the booklet declared, be-
cause the government has confessed"
inability to pay the interest on the
national external debt of SOTO, 000, 900
AN admission which has caused no
little concern among the many stock
holders Of the companies involved a.
to the safety Of their investments IN
Mexico"