Mexico City, Apr. 2.
Disappointed by what they regarded as a relaxation in American diplomatic pressure on Mexico in negotiations over confiscation of American-owned oil properties in Mexico, many company officials to-Gay abandoned hopes of collecting compensation from the Mexican Government.
Government officials, however, continued consideration of various plans for payment of compensation to the four American and thirteen other foreign oil companies affected. One plan suggested by Senator Wilfirdo Cruz would provide that, certain areas of each Mexican state be reserved for cultivation of crops under Government control. Income from the crops would be employed to pay off claims of the foreign oil companies.
American companies estimate their holdings in Mexico at $400,000,000 but it was believed the Mexican Government was basing its deliberations on the tax evaluation of $275,000,000.
"Mexican officials to-day expressed satisfaction with President Roosevelt's reported view that the prudent investment principle of evaluation should govern the compensation requested of the Mexican Government.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.