Expropriation in Mexico The history of the dispute between the
Mexican Govern- ment and the foreign oil companies who have now been expropriated is long and complicated ; the immediate cause of the Government's action was the companies' refusal to accept a wage award made by the Federal Labour Board and confirmed by the Supreme Court. It is difficult to judge whether their refusal is justified ; the companies contend that the costs of applying the award would more than swallow up all their profits, but it is significant that, too late, they appear to have made an offer which, while rejecting the administrative changes demanded, comes very near the terms laid down by the Board. But justice is not likely to decide the issue of the dispute ; the driving force behind the Mexican Government is the wave of Socialism and extreme anti-foreign nationalism which has swept Mexico. At the same time President Cardenas appears to realise the need of foreign investment and technical advice, and of satisfactory com- mercial relations with the United States, if the resources of his country are to be developed. But it is difficult to see how he can reverse so drastic a decision without provoking extreme hostility among the workers, who are now in possession of the oil-wells and on whom his position depends. If the dispute is to be settled in a manner agreeable to the oil companies, the fall of the Cardenas administration would seem to be a necessary preliminary.
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