Evening star., 1942-04-19
Mexico Offers 10 Pay
"a Million 10 i. 5. for
appropriated Lands
Presidents Exchange
Acceptance Messages;
Oil Firms Yet TO Act
By GARNETT d. HORNER.

Official recommendation for
settling the four year-old contrO-
verSy over Mexican appropriation
of Americana owned oil properties
through the payment by Mexico
of $23,995, 1891 over a ive-year
period was announced by the
State Department last night.
Accepted by the two governments
as a satisfactory basis for settle
ment of what has been one of the
most troublesome questions in their
good neighbor" relations, the rec
ommendation by joint United
States Mexican Commission is not
binding on the oil companies in
volved There was no immediate
word here as to the companies at
titude.
The joint commission, composed
of Morris L. Cook and Manuel J.
Zebada, was set up last November
to determine the compensation due
the American oil companies which
had failed to agree directly with
Mexico on the value of their prop
critics taken over by the Mexican
government on March 1S, 1898.
Agree on Valuation.
Evaluating the properties at S23,-
995,99l the two experts recon-
mended that Mexico pay this
amount to the United States Gov
eminent on behalf of the oil COM
panieS, with one-third being paid
on July l, 1912, and the balance in
five equal annual installmentS.
The total amount of compensa-
ton agreed on was allocated as
follows; Standard Oil of New Jer-
sey group, S18,391,641; Standard Oil
of California group, 50 599 158 Con-
Solidated Oil Co. group, $63O,15l;
Sabalo group, s89767l, and Sea-
board group. S487 $40.
Sinclair oil interests. which set
tied their claim in 1910 by direct
agreement with the Mexican gov
eminent for S8.5OO,OOO. were not in
volved in this proposed settlement.
President Avila Camacho of Mex
iCO, in an exchange Of telegrams
with President Roosevelt, hailed the
Cook-Zebada agreement as carry
ing with 1t "a definite settlement
OF the sO-called petroleum question
In reply. Mr. Roosevelt declared
that Mexico and the United States
once again have given a demonstra-
ton to the world that the most
difficult international problems can
be satisfactorily solved when ap-
preached with good will and in a
spirit OF fair play"
Sends Friendly Answer.
President Avila Camacho said the
spirit Of Cancellation" shown by the
agreement should be considered a
confirmation of his governments
attitude in its desire to grant ample
guarantees to the participation Of
private capital" in development Of
Mexican resources.
With the Gil question happily
settled he added. the path remains
open for 'redoubling our effort" in
The common struggle for the "trI-
umph Of democracy and the defense
Of CODt1DnDral sOlrIa,,r,-
Mr. Roosevelt expressed the very
deep appreciation of my country for
the active and constructive collab-
Grafton and assistance Of Mexico on
the cause of freedom and democ-
racy."
The agreement of the two gov
ernmentS on value of the expropri-
ated oil properties represents a COM
promise favorable TO Mexico be-
tween claims of the oil companies
that they were worth Sl50OOO 900
10 $200OOOO0O and previous Mexican
contentious that they were worth no
more than $4,000 600 70 $50 900 900.
Whether accepted Immediately by
the oil concerns involved, the off,
Clal agreement removes the last
sore spot" in relations between the
two governments.
Radio Prooronx Pnoe Ed