DARING MOVE

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

DARING MOVE

BREACH WITH BRITAIN TIME OF ECONOMIC STRAIN THREAT OF WIDESPREAD STRIKES (United Press Assn.—Elec. Tel. Copyright) NEW YORK. May 14 Widespread opinion in Mexico City attributes the diplomatic breach with Britain to a. daring move by President Cardenas to strengthen public support a I a time of economic strain due to the. boycott of Mexican oil .says the Mexico City correspondent of the New York Times. There has been a collapse of business, and labour leaders threaten widespread strikes because of the consequent reduction in wages. The newspaper Novedades says the leaders of the Confederation of Mexican Workers charged many industrial firms with attempting to take advantage of labour's restraint to impose wage reductions and readjust personnel. The confederation Issues a warning that it will resort to the strike weapon if necessary. America Concerned Washington is gravely concerned at the breach of relations between Britain and Mexico, says the correspondent of the New York Times. Apprehension is felt lest coolness might develop between Britain and the United States because of their different policies and of the increased difficulties it may occasion in the adjustment of the expropriation dispute. Great reserve is manifested, however, In studying this possibility, for there had been some indication recently that if Mexico failed to submit soon an adequate proposal for compensating the British and American Oil Companies the United States might seriously consider abandoning the softer policy and moving over to the British position with a demand for the return of the properties. There have even been tentative conjectures whether there W£|s a tacit understanding between Washington and London in this regard. In the background stand the questions whether the Monroe doctrine might become directly involved, and whether the good neighbour policy will be subjected to a severe strain. British Minister to Leave The suspension of diplomatic relations between Britain and Mexico was completed when the British Minister, Mr O’Malley, and the personnel of the Legation received instructions to leave Mexico, says the Mexico City corres -pondent- of the United Press. They will take train for the United States, on the way to London, in a few days.