HC Deb 01 June 1938 vol 336 cc2070-1W
Mr. Morgan Jones

asked the Prime Minister whether any assurance was given to British investors in Mexican oil companies that the diplomatic machinery of His Majesty's Government would be used in support of their claims?

Mr. Butler

It is not the practice of His Majesty's Government to give definite assurances of diplomatic support in advance of the case arising and no such assurances were given in the present instance.

Mr. Morgan Jones

asked the Prime Minister on what grounds His Majesty's Government is demanding the return of the properties of the oil companies in Mexico, while the United States Government has admitted the right of the Mexican Government to expropriate such properties and is only demanding compensation; and whether he will take steps to avoid this divergence of policy in a matter in which the interests of the two Governments are identical?

Mr. Butler

Although the United States Government have so far concentrated upon an attempt to secure adequate compensation for the United States interests concerned, they have nevertheless fully understood the somewhat different attitude adopted by His Majesty's Government and have accorded a sympathetic reception to the explanations from time to time imparted to them by His Majesty's Ambassador at Washington of the reasons which have prompted them to request the restoration of the properties of the Mexican Eagle Company. These reasons are fully set out in the White Paper which will be published in the course of the next few days containing the text of the correspondence on the subject between His Majesty's Government and the Mexican Government up to date.

In the circumstances His Majesty's Government see no reason to modify the policy which they have adopted.

Mr. Morgan Jones

asked the Prime Minister whether the Mexican Eagle oil companies have yet given any guarantees satisfactory to the Mexican Government that they would deal reasonably and liberally with their employés;s?

Mr. Butler

On the information supplied by His Majesty's Minister in Mexico, His Majesty's Government are satisfied that the working conditions and wages prevailing in the foreign-owned oil fields in Mexico compared very favourably with those obtaining in other Mexican industries, including the Government-owned oil industry, and that in the negotiations which were proceeding before the expropriation of their properties the companies were prepared to go to the fullest limits in order to meet any reasonable claims of the labour organisations for a further improvement in the treatment of their employés. The position in this respect was perfectly clear to the Mexican Government.

Forward to