Evening star., 1938-09-13

stands pat answering Hull's sermon
on conf1scation with an impertinent
reference to the New Deals gold seiz-
ure. All shades and classes in Mexico
and newspapers throughout Latin
America cheer the Shanghai gesture to
big Tio Sam.
To break off diplomatic relations,
placing lis outside on the doorstep
with John Bull. does not appeal to
Mr.. Hull who knows that Germany,
Italy and Japan are waiting to take
advantage Of just such a move. Nor
to American business men who are
still doing business in the Latin
American market. With Asia in chaos
and Europe high-tailing it toward the
abattoir we must keep that market.
Others desire 1t. and Latin Americans
are touchy people who have a per-
sonal and racial way OF looking at
things!
Until recently our latest quarrel with
Mexico has interested John Citizen
but little. But now there is talk
loose, of course-of the marines land
ing again. John is sitting up and
asking what it's all about
Several Important Clues.
There are several important clues
in the Mexican puzzle not revealed in
recent dispatches and articles or in
the special edition of the blue-stock-
ing Atlantic Monthly on the subject.
| One is that important American busi-
ness interests. aside from OIL do not
favor the drastic policy instituted by
our State Department. For instance,
the automotive industry. doing we'll
below the border, expects to do even
better with the completion of several
thousand miles Of paved highway un-
der construction. Chrysler Corp,
showing its faith. has just signed with
Signor Azcarraga, Mexican Indian
capitalist who is already part owner
OF Mexican General Motors, for the
construction of million-peso assem-
bly, plant in Mexico City. Chrysler puts
up equipment and technique, Azcarraga
puts up half a million and the re-
manning Chrysler distributors through
out Mexico chip in the remaining
half. At this writing correspondents
in Mexico have not yet picked up this
striking bit Of news.
Here's another significant clue that
has been overlooked On August II the
Canadian Car &, Foundry Co., Cana
dian and British owned and controlled,
signed contract with the Mexican
government to build a huge airplane
factory for the production of United
States Gruman military planes for all
OF Latin America. Britain and Mexico
nave severed relations but that does
not prevent major Canadian COM
pany from seizing opportunity by the
fetlock. The American manufacturer
OF Gruman planes will Of course get
royalties
Brokers Seek Disputed Oil.
There are other deals, including
those OF three American, one British.
one French and sundry German and
Japanese brokers for the disputed Mex
lean oil. which cause Mr.. Cardenas to
feel that he is not entirely alone in the
world. The point Of these recent deals
IN Mexico by foreign capital in the
know is that they are being made in
cooperation with Mexican capital.
These straws in the wind NAV lead
United States John Citizen to explore
basic truths concerning Mexico quite
at variance with the myths floating
ABOUT. One fundamental is that a new
mestlzo industrial plutocracy has arisen
as the old landed plutocracy has been
crushed, and that this new capitalism
IS not only protected but pampered by
Cardenas and his government. As
matter OF fact. they are that govern
ments backbone. They buck far fewer
restrictive laws and taxes than does
the American capitalist. There are no
laws against private ownership. There
Is no income tax! Americans have CON-
iuseo the DEGREES breaking up large
estates and squeezing out foreign
owned monopolies with prohibition of
private ownership. The truth is that
private oWnership-for Mexicans and
ior foreigners who play with the Mex
lean crowds less trammeled in Mex
lco today than in the United States
MOI one OF the Mexican capitalists
TAXED with was afraid that Trotskv
or Stain or Vincente Lombardo Tole.
oano advertised as "Mexico's John L.
LeWs) was going to take over the
country. Some of them laughed heart
ny at the over-simplified picture of
lrotsky running Cardenas and Car
oenas aping Stain, which is being
screened for us Yankees contempo-
raneously with the revelations of the
Oles Committee. If Cardenas could
manage without Marxist phraseology
or without the visionary Toledano (he
is really quite unlike John L. Lewisl
tnese Mexican capitalists would not
OBJECT. But they are for Cardenas
flrst and last. Their bugaboo is not
Mexican Communism under Cardenas
but the chaos which would result from
our intervention or economic reprisal.
period OF chaos would destroy their
new Industries and businesses or nut
these IN new hands-in the hands not
OF socialist state but a new crop of
military adventures. The new gang
would be more Mexico for Mexi-
canos" themselves first) than the
old-which would take the fun out of
intervention or reprisal for us.
No Communist Revolt.
What has happened in Mexico is not
Communist revolution. Only extrem-
lists at both ends put out such re-
ports. The Communist party in Mexi-
co is much smaller and less i'm
portant than in the United States,
Trotsky. very sick man, lives in a
poor suburb in isolation between two
federal police boxes, not with artist
Diego Rivera-as amazingly reported
by recent writer whose observati tions
were limited by the necessity of get
ting back to the Kansas primaries.
Trotsky has no intercourse whatso-
ever with President Cardenas or with
Labor Leader Toledano, who recently