812.6363/6350: Telegram
The Ambassador in Mexico (Daniels) to the Secretary of State
[Received December 7—1:15 a.m.]
392. According to the press of December 5th Attorney General initiated before the First Civil District Court procedure for the appraisal of properties expropriated from the petroleum companies. Under such procedure the district court will cite petroleum companies to appear and appoint an appraisal expert who must be designated within three days after presentation of summons. Attorney General is quoted in the press as saying that appraisal of companies’ property is next to last step in oil controversy with the fixing of the form of payment as the last. Information received indicates that court will attempt to present summons Thursday or Friday. If companies do not appoint appraiser then court can appoint one for them and proceed with appraisals legally. Sollenberger of Huasteca Petroleum Company left by plane today to confer with Standard officials in New York on Thursday at 10 a.m. He stated that from local Mexican angle it would be to companies’ advantage to appoint appraiser rather than to permit court to do so. He said that from an international [Page 714] angle it might be unwise to do so and for that reason he was flying to New York. Sollenberger further stated that he believed acts of his company would depend upon attitude of Department of State. If the Department shows no inclination to intervene on behalf of companies under assumption denial of justice had resulted from legal procedure in Mexico it would place companies in a very difficult position in making a decision as to whether or not to continue the battle or accept principle of compensation. Sollenberger expressed his views to the effect that if the Department does not intervene on behalf of companies battle will have been lost. Sollenberger said that after the meeting at New York Thursday morning he believed that officials of Standard would go to Washington the following day to confer with Department. Airmail despatch follows.