Evening star., 1940-05-05

tdry OF State Hulrs note suggesting
International arbitration OF the oil
appropriation dispute:
Mexico City, D. F.,
May l, 1910.
Mr.. Ambassador:
I have the honor to refer to the |
courteous note addressed on the
third of April last by Your Excel
lency's Government to the Ambas-
sador Of Mexico at Washington. In
it Your Excellency Cs Government) |
is good enough to state that during |
the course of the last years various |
matters have arisen between the |
government Of Mexico and that of
the United States, some of out
standing Importance, the equitable |
and friendly solution of which would
benefit the peoples of the two coun-
tries and that, attempting to reach |
a solution of these matters and for
the purpose Of preparing a way for
their expeditions settlement, your
Government had suggested a COM
prehensible and immediate study
thereof.
It is added that at that very mo-
ment the appropriation of the oil
properties belonging to American
nationals took place, for which no
payment has been made, nor is
there any prospect therefor, al
though the government of Mexico
has declared on various occasions
its readiness to pay, as well as its
ability to do so. The Government
of the United States once more ad-
mits the right Of appropriation
which for reasons of public utility
belongs to every sovereign state,
adding that that right is coupled
with and conditioned on the obliga-
ton to make effective, prompt and
adequate compensation. For this
reason it is recalled that in a pre-
vious note Your Excellency's Gov
ernment stated that the structure
Of international relations in their
various phases rests on the respect
OF governments and peoples for
each others rights under interna-
tional law. and that prompt and Just
compensation was part of this struc-
ture; a principle professed by all
governments of the world and to
which that of Mexico has given its
support. s,s.
It is true, as is affirmed in the |
note to which reply, that expropri-
alton of the properties Of the PEE
troleum companies occurred pre-
cisely when there appeared to be
presenting itself a prospect of an
adjustment regarding some pending |
questions, but the time was not |
chosen by the government of Mex
leo, which was obliged to act in view |
OF well-known circumstances.
Notwithstanding that in the note |
to which I am replying, all the |
matters awaiting settlement to which |
reference Is made above are not |
detailed, 1t must be recognized that |
there exists important questions |
between the two governments, for |
the immediate and equitable ad- |
3ustment of which the government
Of Mexico has shown particular zeal;
their solution might be attempted at |
once, since no justifiable reason
exists for considering it necessarily
indispensable to subject the settle
ment OF other important questions to
that OF the oil case.
Necessity for Deciding
Amount Of Payment Cited.
It Is imputed to Mexico that In
spite Of having declared its support
OF the principle Of right to an
equitable and prompt compensation
for the appropriated properties" 1t
has not carried 1t out in practice.
With respect to this. my govern
ment sees itself obliged, once more,
to insist upon what it has repeated
continually and in all forms, that is
to say, its determination to pay the
indemnity which is proper, it ap-
pearing to be unjust to maintain
that Mexico has not complied with
the obligation involved in that prin-
ciple, only because it requires, as is
obvious, that the total of the amount
which it must pay be previously
fixed. The frequent settlements in
daily transactions between private
individuals, the decisions on the
multiple controversies which are
taken before the local courts, in the
judgments on compensation, among
which there can be pointed out some
very important ones rendered, for
example, by the courts of the United
States and the arbitral decisions on
differences between states, prove
overwhelmingly that the obligation
to pay cannot be exacted until after,
by some means, the total of the
amount which must be paid may be
learned and established.
The fact that the said obligation
has not been Hquidated is to be at
tributed to the companies themselves
which have Systematically refused
to allow the value of their properties
to be determined, whether in the
friendly manner proposed by Mexico
through private negotiations or be-
fore the competent courts, to which
my Government, more desirous than
the other interested parties to ter
inmate this matter, has entrusted,
in compliance with the law, the task
Of determining through experts the
value OF IHe SdlQ properties.
This decision originates in the at
titude of the companies which, by
all means at their disposal, have
prevented the attainment of a i
knowledge of the amount of the in
demnity, an absolutely indispensable
requisite for being able to effect pay
ment. Both by certain activities Of
the companies and by publications
which they have distributed, it be-
comes obvious that their efforts have
ever been directed toward delaying
the settlement of the dispute, by
which means they have caused seri-
GUS economic injury to Mexico and
to the commercial relations between
our two countries, the said COM
NAMES even c0inp Sc far nc fn