The Archive · 1938

U.S.—Mexican Impasse

Washington Unwilling to Force Gen. Cardenas Out of Dictatorship; Insistence on Rights Washington, Apr. 1.

WING to fears that the Fascist regime may supervene in Mexico if the President, Gen. Lazaro Cardenas, is forced out of office, the United States Government is resisting suggestions to intensify pressure on Mexico over the expropriation of foreign oil companies. Mr, Cordell Hull, the Secretary of State, is confronted with a very delicate situation as the rights of.the United States must be upheld but the United States Government is determined to encourage aled Liberal government in Latin America even at some expense to American interests—Reuter.

Washington, Mar. '31. gress summoned here by the Presi-'The Post Office Department announced to-day, the suspension of dent, Gen, Lazaro Cardenas: yester COD. and registered mail services The bonds, to be, called "Nationa to. Mexico, Redemption ' Bonds," will bear no While the announcement said the interest for the first ten years, after suspension was a routine measure which there will be a moderate since the Mexican Government had return. Redemption of the bonds Suspended issuance of money orders will, it is understood, be made by payable In the United States and had no connection with the current crisis, observers contended that the Mexico Feels El Shortage ow "move, being a suspension of Mexicali, Mar, 30. another normal service, was not All petrol stations closed here to-detached from the present dispute. day because of lack of supplies. Remaining supplies are being conserved Mexico Surprised for use in farm tractors and pumping Mexico City, Mar, 31. machinery in the irrigation district.

Mexican Government oficiais ox-Local el! supplies previously were pressed "surprise" to-day on the imobtained in the United States, but plications of the American Secretary suspension of foreign exchange {rans of State, Mr. Cordell Hull, that actions has made it impossible for Mexico must pay for the lands'selzed Mexican dealers to renew their sup-by the Government under its plies—United Press. agrarian programme and for foreign all holdings confiscated by the Gove ernment, British interests An exact estimate of the curtallment of all operations was at present impossible, Companies to Sve seventeen origin li compete, thos apes wer Sen Bande, wt neck Cost elon 1 St ende"the ore dross wad angoued lite apodal rieing a Congr cal of pont by a, arenas seo the Zain get euteton of an nona un, of oct tian Sage © te "Propendia tov amend the labour roe rare Sentai eat Vellore. quater understand ant an id eae Dibner at "Be ceased" Bes ferier et foreign si eampniea hited Bie Mexico's Right Washington, Mar. 30, Relations with Mexico may be seriously strained if she fails to pay just and equitable compensation for expropriated foreign properties, Mr. Cordell Hull, Secretary of Stale, indicated to-day in his frst statement singe the southern republic confiscated. American of Jands valued '$206,000,000, Mr. "Hull expressed the "very earnest hope" that for the benefit friendly relations, the Moxiear. Uevernment "may soon find. a fair and equitable solution for the exproprin" Hon problems."

The statement followed a lengthy conference with Stale Department} division heads after Mr fo-chus Daniels, the American Ambassador to Mexico, made stern, representations to the Mexican Foreign Omec.

Mr. Hull declined to discuss Mtr. Daniels' overtures, but he outlined the United States" position and said pointedly that "payment of full compensation for seized property is in accordance with every principle of! International law and of equity.'

'The Secretary' of State recognized the legality of Mexico's expropriation law and said that no pressure was doing brought for return of American properties. "This Government's representations and negotiations", "he said, "revolved round the question of proper compensation.

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