Evening star., 1939-08-18
Parish Stresses Huge
Stake in Mexican
Oil Situation
Letter to Hull Cites
Voiding Of Previous
Negotiations
By the Associated Press.

By the Associated Press.
NEW YORK, Aug. 18.-W. S.
Parish, president of the Standard |
Oil Co. of New Jersey. disclosed |
yesterday that he had called upon
the United States Government ito
remind she Mexican government"
that the oil companies whose
Mexican properties were expropriat-
ed last year are associations OF
injured American citizens who have
been despoiled of rights acknowl-
edged wherever civilized people are
engaged in peaceful commerce
among nations"
The American companies con-
cerned have estimated their Mexican
properties as worth $150,000000 to
5000 100000
The request was contained in a
letter sent by Parish August 10 to
Secretary of State Hull and made
public yesterday.
At the same time, Parish made
public a letter sent by Donald R.
Richberg, negotiator for the Oil
companies, on July II to DR.. Fran
cisco Castillo Ma jera, Mexican Am
bassador to Washington, in which
was stated Il am regretfully forced
to conclude that the efforts hereto
fore made to arrive at an UNDER
standing of basic principles for the
return of the oil properties to the
companies) have now been aban-
doned: and, without such an under
standing, further negotiations would
be useless"
Cites 1888 Agreement.
Parish, in his letter to Hull, |
asserted that late in 1898 the COM
panies and the Mexican government
agreed to the following program:
Provision through the medium
of a long-term contract for the
operation by the respective COM
panies of properties taken, in ac-
cordance with the terms OF the
contract free from restrictions,
claims or obligations not embodied
therein.
"A fixed schedule of rates DELI
nitely determining all taxes and
similar payments to be made during
the life of the contract.
"A reciprocal guarantee, for the
life of the contract, of reasonable
and workable labor conditions.
An appropriate measure and
means of reimbursement for losses
sustained by the companies to date
of contract by reason of seizure OF
properties on March l8. 1888.
Upon expiration Of the long-term
contract all claims and interests of
companies in producing properties
in Mexico to be released and trans
ferred to the Mexican government
without payment of any further
consideration"
Attitude Changes.
The oil company head said a
thorough understanding was estab-
lished" on the matter, then added:
But when it appeared that sub
Stantial agreement upon major prln-
ciples had been reached tentatively
in Saltillo on May 3. and that an
expert negotiation of the detailed
provisions of contracts would be
next in order and should be under
taken at an early date, a sudden
change took place in the attitude OF
the Mexican government.
After long and unexplained de-
lay. and then a patient resumption
of discussions with the Mexican Am
bassador in Washington, letter
was received by Mr.. Richberg on
July II dated July s. setting forth
the position of the Mexican govern
ment in such a way as to nullify the
results of the previous negotiations"
Farish asserted that. since that
time. the oil companies have not
undertaken any discussion of any
proposal differing from the "objec-
tiveS originally written as the basis
for the discussions between Rich
berg and the Mexican government.
1T becomes necessary, accord
ingly," Parish wrote, TO report to
the Department of State that the
companies have found it impossible
to arrive at an agreement with the
Mexican government for adjusting
equitably the controversy arising
out of the forcible seizure of these
properties.
"Obviously it would not be appro-
pirate for the Government of the
United States to undertake-and it
is not being asked to undertake
negotiations to determine the
amount or method of paying a COM
penSation which the Mexican gov
eminent confessedly is both unable
and unwilling to pay.
Seizure Denounced.
1T is appropriate, however, in
the present situation again to re-
quest the Government of the United
States to call upon the Mexican
government to return to the pos
session and control of American
citizens their properties which have
been unlawfully seized and held by
the Mexican government and to
call upon the Mexican government
to recompense the owners of these
properties for all damages and
losses *,+
I'VE think it would be also ap-
propriate for the Government of the
United States to remind the Mex
lean government that the companies
are not to be regarded as suitors
for favor but as associations of in
jured American citizens who have
been despoiled of rights acknowl-
edged wherever civilized people are
engaged in peaceful commerce
among nations"