The Ambassador in Mexico (Daniels) to the Secretary of State

No. 8165

Sir: I have the honor to report that at my weekly call on Thursday at the Foreign Office I informed Minister Hay29 that Mr. Donald Richberg, representing the companies whose oil properties were expropriated in March 1938, had reached Mexico to open negotiations with the Mexican authorities looking to some mutually satisfactory agreement. I took occasion to say that my Government sincerely hoped that an adjustment between the oil companies and the Mexican Government could be reached. General Hay said that was also his earnest hope. He added that delay in negotiations did not lie at the door of the Mexican Government, for immediately after the expropriation he had told me that the Mexican Government wished to confer with the representatives of the oil companies and was determined to pay for the properties expropriated, and that President Cárdenas had publicly and in all ways invited the companies to name representatives with whom he could confer. He said he was glad that the negotiations were to take place and he hoped for the best results. He indicated that the conferences would take place at the Department of Hacienda. The President from the beginning has acted through the Minister of Hacienda30 in all oil matters.

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As President Cárdenas will be absent from the city until the latter part of the week, he will not engage in any conferences until next week.

The Department will be kept advised.

Respectfully yours,

Josephus Daniels
  1. Eduardo Hay, Mexican Minister for Foreign Affairs.
  2. Eduardo Suárez.