NOTE RESENTED

Waikato Times, Volume 122, Issue 20499, 16 May 1938, Page 7

NOTE RESENTED

MINISTER RECALLED MEXICO CRITICISES BRITAIN ALLEGED UNFRIENDLY ATTITUDE Lulled Press Assn.—Elec. Tel. Copyright MEXICO CITY, May 14 The Mexican Government has recalled its Minister in London, Senor Primo Villa Michel, in view of Britain’s “unfriendly attitude.” This follows the action of Mexico in expropriating by a decree on March 19 last, the property of 17 British and American oil companies, worth about £BO,000,000, following a dispute between the companies and labour over an arbitration award, and reoent British pressure upon Mexico regarding debt payments. The suspension of diplomatic relations and the closing of the legation in London were announced in a Note handed to the British Minister in Mexico City, Mr Owen O’Malley, by the Foreign Minister, Senor Edouardo Hay. Simultaneously, Senor Hay handed Mr O’Malley a cheque for 361,737 pesos covering the claims for the annuity due on January 1, 1938, plus interest, which was the subject of Britain’s last Note to Mexico. The Mexican Reply The text of the Mexican reply to the British Note demanding the payment of special claims maintains that the agreement of December 31, 1935, recognises Mexico’s right to defer payment by delivering the interest on unliquidated annuities, which therefore make's them not demandable. 44 In view, nevertheless, of vour Government’s attitude in the matter," the Note proceeds, 44 I have pleasure In attaching a cheque for 361,737 pesos, it having been necessary to rectify the figure of 370,962 pesos mentioned by your legation since the latter was erroneous. 44 As the object of the Note which Is hereby answered is to require the above-mentione'd . payment, I refrain from taking into consideration the diverse reference which the same contains regarding the state of the internal and external debt of Mexico. These references do not take' into account on the one hand that your Government lacks any right to analyse the interior situation of Mexico, and on the other hand the complex circumstance's involved, which explain and even justify the attitude of my Government. 44 These references do not halt at the limits that might be expected. Allow me, only because I consider it pertinent, to call Ihe attention of Your Excellency to the fact that even the most powerful States, and those which have at their disposal abundant resources, cannot boast that they are up-to-date in the payment of all their pecuniary obligations.” Closing the Legation A Mexican press communique stated: 44 Mr O’Malley was notified that, in view of the not very friendly attitude of the British Government toward the Mexican Government in connection with the recent expropriation of the oil companies, the Mexican Government feels it necessary to withdraw its Minister in London and the legation personnel in that country. Tt is closing Ihe legation, leavthe' archives in the custody of the Mexican Consul-General.”

MINISTER RECALLED BREAKING OFF OF RELATIONS United Press Assn.—Elec. Tel. Copyright (Received May 16, 11.25 a.m.) LONDON, May 15 Following Mexico breaking off diplomatic relations Britain has recalled the Minister, Mr Owen O’Malley, leaving affairs in the hands of the Consulate.

CAUSE OF ACTION ~~ INTERNATIONAL C OMPLIC ATI ONS MONROE DOCTRINE RELIED ON (United Press Assn.—Elec. Tel. Copyright) NEW YORK, May 14 Mexico's sudden action, carrying with it serious international complications, was the direct outcome of three British Notes to Mexico between March 11 and April 8, says the Mexico City correspondent of the New York Times. Mexico is counting upon the Monroe Doctrine to protect her from Britain’s wrath, and the unpleasant situation is laid at the doorstep of Washington. It was strongly rumoured to-night that Britain had been leading up to the break in relations by the Notes. Air O'Malley, the British Minister! denied this emphatically, however.

SALES OF OIL MANAGER NOT IMPRESSED PAYMENT FOR PROPERTIES (United Press Assn.—Elec. Tel. Copyright) >enor Vicente Cortes Herrera, Senior Vicente Cortes Herrera, manager of ihe Mexican Petroleum Commission, is not impressed by the rupture between Britain and Mexico. "The British and American oil companies must accept payment for the expropriated properties in oil or funds derived from Ihe sale 0 f oil to other nations." lie said. "Mexico is already selling oil to other countries, including Germany, France and South America-’’