Mexico's Reply to Britain The British Note to Mexico, demanding
restitution of the expropriated oil wells, has had the reply which was expected. President Cardenas has explained that he means to indemnify the companies in full but cannot consider restoring their properties. On Good Friday the Mexican Parliament approved the immediate issue of a patriotic loan of £10,000,000 which will be used to compensate the companies. Until it is finally known whether President Cardenas can fulfil his promise, it is difficult to know what further step Great Britain can take. The moderate terms of the American Note, which accepted the principle of compensation, can be backed up by commercial reprisals which will affect Mexico seriously ; the much stronger terms of the British Note have little force behind them. Indeed the British Government appears to be in a bad bargaining position. Mexico is important to this country as a source of oil which can come to this country by a safe route in time of war, and the loss of such supplies would be serirsus. Thus the activities of the ubiquitous Mr. Rickett are of some interest. After an announcement that ho had left Mexico City, he was later reported to have negotiate: an agreement on behalf of British interests for the deliver\ of 15,000,000 barrels of Mexican oil.
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