812.6363/2978
The Chargé in Mexico ( Boal ) to the Secretary of State
[Received August 11.]
Sir: With reference to my despatch 5169 of August 4, 1937,62 I have the honor to enclose the first eight volumes (in Spanish) of the findings of the Commission of Experts which has been investigating the economic situation of the petroleum companies in Mexico. These volumes have been supplied to the Commercial Attaché by the Huasteca Petroleum Company and further volumes will be forwarded as they appear. As no second copies are available, none are being retained for the Embassy; it is, however, hoped to obtain extra copies later on.
The companies have until August 10, 1937, to present their observations on the report of the Commission. They intend to do this, taking exception particularly to the Commission’s statement of profits, which the companies claim to be in the neighborhood of 18,000,000 pesos rather than the 77,000,000 pesos reported by the Commission. They will also take exception to the Commission’s conclusions regarding the role of the companies in the life of the country and to the Commission’s recommendations in the matter of wages and social benefits.
On the other hand, the Syndicate is expected to oppose objections to the Commission’s findings and recommendations, advancing claims for considerably more than the 26,000,000 pesos which the Commission considers should be the increased cost to the companies for higher [Page 662] wages and better social services for the workers. The Syndicate is also expected to object to the number of confidential positions which the Commission’s report would allow the companies to retain.
As it will appear from the above, the controversy is likely to drag on for some time to come in hearings before the Labor Board No. 7. In their present mood, it is possible that the strikers will refuse to accept the Commission’s recommendations if they are adopted by the Labor Board, so that the possibility of another strike at an early date is not precluded.
It is believed that the Labor Board will begin consideration of findings, comments, and countercomments during the week beginning August 16th. Copies of the companies’ and the syndicate’s objections will be forwarded to the Department as secured.
Respectfully yours,
- Not printed.↩