812.5045/651: Telegram
The Ambassador in Mexico (Daniels) to the Secretary of State
[Received February 25—1:40 a.m.]
34. Beteta63 told Boal64 today that Castillo Nájera65 had just telephoned that he had had a talk with Armstrong, that he felt that Armstrong had not realized when he was here how far the Government would be willing to go to meet the petroleum companies on other points if they would agree to pay 26,000,000 pesos annually specified in the award. Castillo Nájera had some hope that Armstrong would return to Mexico City immediately to discuss the situation further with the Government in the hope of finding an adjustment. Beteta was much alarmed over the situation which would follow a Supreme Court decision upholding the Labor Board’s award and plea of oil men to work under it. He feared that the Government to call forth the necessary [Page 722] sacrifices from the petroleum workers and others if it took over the oil industry would necessarily eventuate in a campaign against foreign capital. He said that he was going immediately to try to see the President and convey Castillo Nájera’s message and to urge that the Supreme Court decision be delayed sufficiently to permit of further discussions with Armstrong.
Messrs. Anderson,66 Tschudin,67 Beckwith,68 Wilkinson,69 and Cabanas70 representing the American Agency companies in Mexico called upon me this afternoon to lodge formal protest against what they term to be prejudgment of their case before the Supreme Court basing their protest on the spirit of President Cárdenas’ statements regarding the oil controversy and the companies in his speech at the meeting of the CTM71 this morning. They say this speech indicates that justice will be denied them. I suggested that they should make every possible concession to avoid an impasse. After this they discussed the general situation with me making it clear that they had no intention of acceding to the 26 million figure, first, because they thought that they could not do so, second, because they feel it would simply be used as leverage to try to obtain further concessions and would not lead to an adjustment of the other questions. I told them without using any names except that of Armstrong of what had been learned from Castillo Nájera through Beteta. They said they understood Armstrong was leaving for Venezuela and had no intention of coming to Mexico City. They were obviously unfavorable to his return here but they said they would be willing to discuss with the Government any plans for solution which did not involve a previous agreement by them to the 26 million.
- Ramón Beteta, Mexican Under Secretary for Foreign Affairs.↩
- Pierre de L. Boal, Counselor of Embassy in Mexico.↩
- Mexican Ambassador in the United States.↩
- L. L. Anderson, Standard Oil Co. of New Jersey.↩
- W. G. Tschudin, Pierce-Sinclair Oil Co.↩
- Palmer Beckwith, Richmond Petroleum Co. of Mexico.↩
- W. W. Wilkinson, California Standard Oil Co. of Mexico.↩
- Of Pierce-Sinclair Oil Co.↩
- Confederación de Trabajadores Mexicanos (Confederation of Workers of Mexico).↩