The Chargé in Mexico (Boal) to the Secretary of State

No. 5226

Sir: I have the honor to refer to Mr. Boal’s telegram number 224 of August 14, 1937,63 relative to the proposed visit of various members of the petroleum industry in Mexico with Mr. Sumner Welles during the latter part of this week. The members of the petroleum industry will leave Mexico City for New York by airplane today and will thoroughly discuss their Mexican problems in New York before proceeding to Washington. Reports are current to the effect that the New York conference will determine whether or not the petroleum companies will continue operations in Mexico if the suggestions or recommendations of the Committee of Experts should be followed in the decision to be rendered by Junta No. 7 of the Federal Board of Arbitration. It is believed that the petroleum situation is now approaching a very definite crisis and, therefore, the petroleum companies are beginning to prepare a case before the Department of State in anticipation of a denial of justice by the courts.

As stated in Embassy telegram number 224 of August 14, 1937, mentioned above, Lockett has secured a copy of the memorandum which will be presented to Mr. Sumner Welles by the representatives of the petroleum companies. A copy is attached hereto, marked number 1,63 in order that Mr. Welles may be previously informed of the object of the visit of the petroleum representatives. It is also believed that the conference with Mr. Welles will be utilized to discuss the entire petroleum situation in Mexico.

For the Department’s further information, there is attached a memorandum63 prepared for the petroleum companies by Attorney Luis Cabrera, which sets forth the illegality, particularly referring to the Federal Labor Law, of many recommendations made by the Committee of Experts. This memorandum reinforces the claims of illegality as recorded in the general memorandum, marked number 1, which will be presented to Mr. Welles. Attorney Luis Cabrera’s memorandum is attached and marked number 2.

Respectfully yours,

For the Chargé d’Affaires ad interim:
William P. Blocker

First Secretary of Embassy
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