HC Deb 26 April 1938 vol 335 cc32-3
65. Mr. R. Robinson

asked the Prime Minister whether he can make a further statement with regard to the expropriation of British oil interests in Mexico?

Mr. Butler

On 12th April the Mexican Government in a Note, the text of which has been published, refused the request, conveyed on 8th April through the intermediary of His Majesty's Minister at Mexico City, that they should restore the properties of the Mexican Eagle Company on the grounds that the expropriation decree of 18th March was inherently unjustified. As this Note saw fit to challenge the locus standiof His Majesty's Government to intervene, His Majesty's Minister at Mexico City on 21st April communicated a Note to the Mexican Government, the text of which has been made public, to the effect that the important British interests involved give His Majesty's Government an undoubted right to make representations. In this Note the Mexican Government were once again requested to restore the expropriated properties as the only practical means of avoiding a serious injury to extensive British interests.

Mr. Thorne

Is the Minister aware that the cause of all this trouble is that the oil company in question have refused to carry out the decision of the arbitration board and also of the court of appeal?

Mr. Butler

I cannot accept the hon. Gentleman's version of the situation, and I would advise him to read the statements that have been made publicly.

Mr. Gallacher

Can the Minister tell me why His Majesty's Government, who at the present time have just taken coal out of the hands of the royalty owners in this country, are complaining of the Mexicans taking oil from these companies?