812.5045/576: Telegram
The Ambassador in Mexico ( Daniels ) to the Secretary of State
[Received 10 p.m.]
277. President Cardenas received representatives of the petroleum companies on October 18. The delegation was composed of only three men representing Sinclair Pierce, Huasteca, and the Aguila. [Page 673] The representatives stated that since last November there had been 91 unauthorized strikes in the petroleum industry and that these strikes were demoralizing the workers whose attitude toward the companies and their work was unsatisfactory. They remarked that the experts had emphasized that some companies were selling oil on long term contracts at less than world market prices to their subsidiaries and exhibited to the President documentary evidence to show that this was not being done. Van Hasselt67 informed the President that if the experts’ recommendations were put into effect by the Labor Board the companies would of necessity have to cease operations. He informed the President that conferences held in New York with stockholders had revealed that the latter were unwilling to put any more money into Mexico if the recommendations of the experts should go into effect.
As they left the President told the representatives that he would take the situation personally into his own hands and would consult with the experts and with Villalobos68 to see what could be done. The petroleum representatives said that the interview left them hopeful but not too hopeful. The above information was obtained from them.