20 MAY 1938, Page 2

Mexico and Britain The rupture of diplomatic relations between Great

Britain and Mexico is greatly to be deplored, most of all because it increases the difficulties of achieving a satisfactory settle- ment of the oil question. The ostensible reason for the rupture was Great Britain's sharp demand for payment of an overdue instalment of Mexico's debt under the Anglo- Mexican Claims Convention. Mexico replied by withdrawing her Minister in London and instructing the British Minister to leave, making a cash payment of D8,0450 and remarking that even great and rich countries did not always honour their obligations. The real cause, however, is the offence given to national sensibility by the manner of Great Britain's handling of negotiations ever since the expropriation of the oil companies. The element of danger in what might be regarded otherwise as an unimportant diplomatic dispute is that foreign interests in Mexico may now resort to sub- versive tactics in order to recover their rights ; it is sur- prising to find a London paper remarking, with no sign of disapproval, that " revolution " is now the foreign share- holders' only hope. " Revolution " means the overthrow of President Cardenas by a reactionary bloc, and if such an attempt is made it would place grave difficulties in the way of the U.S.A.'s " good neighbour " policy and might have serious international repercussions.

* * * *