812.5045/662: Telegram
The Ambassador in Mexico ( Daniels ) to the Secretary of State
[Received 6:43 p.m.]
40. My telegram No. 39 of March 3, 1 p.m.72 Notification of the Supreme Court decision73 was made to the companies last night and the Labor Board has given them until noon, Monday, March 7, 1938 to comply with the decision. At that time the question of wages at the increased rate from January 1, 1938 will arise and also the question of the application of the work provisions of the award including the 40-hour week. It is conceivable that there might be some delay with regard to the payment of the wages from January 1 on the basis of calculation as has been the case with regard to the strike wages for last year. If the companies refuse to grant the 40-hour week on Monday they may provide the workers here and in other countries with a strong talking point. The companies offered to grant the 40-hour week as part of one of their previous offers to meet the situation; however, the entire offer of which the 40-hour week was only one item was rejected by the Syndicate of Petroleum Workers.
Some of the companies’ managers and officials here anticipate rioting and possibly bloodshed in the oil fields next week.
We have mentioned this fear to Licenciado Beteta today who said that he anticipated no disorders but would take the precaution of mentioning it to the President.