The Archive · 1938

Mexico Surprised

Mexico City, Mar. 31.

Mexican Government officials expressed "surprise" to-day on the implications of the American Secretary of State, Mr. Cordell Hull, that Mexico must pay for the lands seized by the Government under its agrarian programme and for foreign oil holdings confiscated by the Government.

An exact estimate of the curtailment of oil operations was at present impossible, Foreign Companies to Sue The seventeen foreign oil companies whose properties were recently confiscated, will seek court action to set aside the seizure decrees, it was announced here to-day.

The special meeting of Congress called for April 11 by Gen. Cardenas, will consider the following urgent measures:

Authorization of an internal loan of $28,000,000 for "national redemption"; Modification of Mexico's import and export duties; "Adoption of an amendment to the existing petroleum laws, and Proposal to amend the labour section of the constitution and consideration of twenty other new measures.

Well-informed quarters understood the new loan would be used as part payment for the confiscated properties of foreign oil companies.—United Press.

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