SUSPENDED DIPLOMATIC RELATIONS

Waikato Times, Volume 122, Issue 20500, 17 May 1938, Page 6

SUSPENDED DIPLOMATIC RELATIONS

Britain and Mexico have suspended diplomatic relations to the extent of withdrawing their respective Ministers, but charges d’affaires or consuls will probably deal with any formal business in the meantime. It will be interesting to see what attitude the Government at Washington adopts. The Mexican Government, when it decided to seize the oil properties, received protests from both Washington and London, for Anglo-American interests, to the extent of £80,000,000, were said to be at stake. The American Note did not challenge Mexico’s right to expropriate the foreign interests but asked for fair and prompt compensation. The British protest was much more pointed. It did not deny the right to expropriate but challenged the grounds for the action, which, it held, was the culmination of a series of injustices. The British Government alleged that Mexico’s real motive was political; that expropriation really amounted to confiscation, under the camouflage of the labour issue, and that the action transgressed the principles of international law. The Mexican reply took the line that the British Note amounted to an effort to interfere with internal affairs in Mexico. It was held that the actions taken were in accordance with Mexican law, and for that reason could not be challenged by any other Government. The question of compensation has since been mentioned in cable messages, but apparently no definite offer has yet been made. The Mexican attitude is that it will pay compensation to the former owners, but only out of the proceeds of oil sold, and as the two protesting Governments are in a position to control the largest markets the sales may be slow and the returns inadequate. The United States has, ever since the advent to office of President Roosevelt, followed the policy of the good neighbour, but that has not prevented the Mexican Government from seizing properties which' were developed by American capital. It is one thing to seize a highly technical industry and quite another to operate it successfully, and without expert management even the oil-wells of Mexico may not be the revenueproducers that the Government had hoped.