812.5045/629: Telegram

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

15. The President of the Federal Board of Conciliation and Arbitration58 this evening ordered the oil companies to comply with the decision of December 18th [1937].59 This order issued because of failure of oil companies to post bond within 5-day period will become effective immediately upon ratification to the oil companies which will be expected to comply with the increased wage scale by next week.

The Department of Labor this evening called upon all Mexican technicians immediately to register in order to be available to replace any foreign technicians who might leave the country thereby causing disruption in any industry. It states that this measure is not intended to incite nationalistic feeling but to safeguard the foundation of Mexican industry which cannot remain secure as long as the direction of the national industries remains in the hands of foreign technicians for whom there are no substitutes.

Full report air mail.

Daniels
  1. Gustavo Corona.
  2. Award rendered by the Federal Board of Conciliation and Arbitration, Mexico: Mexico’s Oil, a Compilation of Official Documents in the Conflict of Economic Order in the Petroleum Industry, with an Introduction Summarizing Its Causes and Consequences (Mexico, 1940), pp. 697 ff. The award approved an increase of 26,000,000 pesos in oil workers’ wages.