812.6363/4673
The Ambassador in Mexico (Daniels) to the Secretary of State
[Received August 31.]
Sir: I have the honor to refer to my despatches No. 6774 of June 2, No. 6794 of June 7, No. 6812 of June 10, 1938,17 and other data that have been forwarded to the Department, all with regard to the properties subsidiary to or affiliated with the expropriated petroleum companies, which have been occupied by the Government.
In brief, it will be recalled that the Expropriation Decree states, among other things, that the Ministry of National Economy was to issue a list of the properties to be occupied. Up to the present this has not been done, but many of the properties not directly belonging to the companies mentioned in the Expropriation Decree have, nevertheless, been occupied.
Amparo proceedings, as indicated in my despatches above mentioned, were brought by various of the affiliates owning the occupied, but not expressly expropriated, properties, and these have made some progress. The main hearings (the majority of which were scheduled for Tuxpam and Tampico courts) were in general to be held in the week of July 4–July 13. Delays ensued, and on July 29 a hearing was held; this was not on the issue at hand but merely on whether or not the various cases should be consolidated.
It was decided to do this and the case is now set for September 2, 1938.
[Page 759]The companies are going to send their representatives before the courts on that day, but they believe that their case is so strong that it will not be heard and that merely a further postponement will be the order of the day.
In connection with the companies’ case, reference is made to the court decision of July 26, 1938, which denied the appeal of the companies to the effect that the new administrative organization constituted a monopoly, and thus countervened the Mexican Constitution.
Respectfully yours,
- None printed.↩