The Washington times., 1938-04-04
Oil Is Power
THE Mexican oil crisis, started by President Cardenas
i grows more and more serious tor Cardenas.


i grows more and more serious tor Cardenas
Cardenas' appropriation of $450,OOO,000 worth of
American British and Dutch oil properties in Mexico
choked off about IS per cent of Mexcos oil production
within a week. A lot of Mexican oil workers sud-
denly divorced from pay rolls the eso took off long
though not graceful dive, and various woud-be
Mexican Hters back in the hills began polishing up their
rifles and drilling their soldiers in earnest
Late last week there entered tie picture couple OF
gentlemen of whom the world has heard before. These
Bernard E. Benz Smith, long known as one of the
New York Stock Exchanges most daring operators and
Francis w. Rcket the promoter who was going to res
cue Ethiopia from Mussolins onccnnG egons by selling
huge Ethiopian oil concessions alegedy to Standard Oil
of New Jersey.
Messrs Smith and Ricket were reported negotiating
deals with Cardenas whereby they would take the ZAP
proprated oil off his hands at low prices and sell it for
what they could make it to customers as yet undls
closed.
Meanwhile Mr.. Cardenas has been talking, always
without directly committing himself, about paying for
these oil properties He hints and again that pay
ment will be made either in paper pesos
PaUH1ent in Mexican bonds, within ten years or so.
NJ Good We do not see how cur State Department
can agree to either kind of payment-or to
any payment. Mexican pesos bum currency Mexican
bonds are even But payment in gold would not
compensate for this attempt to seize petroleum developed
by English and American capital and resell it to other
countries.
Some of those countries might he actual potential
enemies of the United States or Great Britain Money
something you use to buy power; but oil is power in to-
days word-power to drive airpanes lover Barcelona
for exampe) power to drive batteshps against Shang
hal for example, power to keep the people of whole ma
ton enjoying standards of living far above those prevail
ing in countries which lack easy economical access to OIL
Neither the United States nor Great Britain can
afford let Mr.. Cardenas get by with this action as
of radical thinkers say they should do Nor
can we afford to let Smith,
~ CWoe"aS "etS Rickett or anybody else buy
By With This Grab this ex-American oil from
Cardenas and sell it elsewhere.
If Cardenas makes this action stick, Central and
South American nations will be encouraged to begin
kicking Uncle Sam in the pants and inviting European
exploiters to over in defiance OF the Monroe
Doctrine Nations where British money is invested in
oil wells may be encouraged to start tampering with
Britans oil supply That would move Britain to fight
for its life-and thus huge and disastrous might
grow from Mexican Bolsheviks ill-advsed grab of
other peoples property.
We nothing for Government to do but to play
power politics along with Great Britain until Cardenas
has to back down. This is debate over national
"GOOd NeighbOr" Policy .Go ianeTon;" tS;.
Should Work Both Ways is fiabt and t the
stake is the kind of power modern nation must have
to stay modern.
We should take steps especially to that Mr..
Cardenas shall smuggle of this oil into this coun-
try; that oil companies, and their employees many
Of them out of work. shall get whatever additional
business they may because of the halt in Mexican oil
production.
The good neighbor" policy is two-way PROPOSE
ton. When neighbor stops acting like a good
neighbor, the other neighbor is in no way obligated
to go on being good neighbor.
We need the best navy in the world
(FrOm New YorkD Daily NewD