The Archive · 1938

Oil Company

Seizure Decree Claimed as Covering Property Abroad Washington, June 4.

The Mexican Government has decided to sue the British firm, Mexican Eagle Oil Ca. for delivery of a tanker which is at present in the port of Mobile, Alabama.

The Government arguing that as the company was expropriated, all s belongings.should go to Mexico The tanker in question was at Mobile when the Mexican Pri lent, Gen. Lazaro Cardenas, signed the expropriation decree.

Political circles here pointed out that an important point of international law will be raised by the case, London, June 3. Political circles here comment with great interest on negotiations now being carried on. between the British and the Greek governments. It is expected that conversations wil culminate in an agreement similar to that recently concluded! by London with Ankara, and whic will mot only settle several important financial and economic problems, but will also provide for supply of British war material to Greece.

The same circles considered the negotiations a swift and silent move destined to stabilize and stil ture ther increase British influence In Eastern Mediterranean, and recalled that many influential members of the British Government advocated the formation of a bloc of peaceful nations, running from Poland to the Black Sea and probably. even further east, to the Persian Gulf.—

If the American Federal courts give their decision in favour of Mexico, a precedent will be created permitting Mexico to claim all belongings of the expropriated companies at present abroad.

This would not fail to create difficulties for the American oil interests as the bank deposits and other belongings situated in the United States would fall under the order of seizure in favour of the Mexican Government—Havas.

Text read from the printed page and cleaned; old type leaves the occasional error.

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