Show MEXICO'S LAW MAY HIT TRADE LT u S Has lias Over Oyer Billion Invest Invested d Fear Confiscation Confiscation tion of P Property Uy 11 li X COLI S SpecIal 11 Correspondent nt of The K l Copyright I 1926 92 6 Consolidated Press PreM Association WASHINGTON Nov 27 Dust Busl Busi ness ness- ness very veTy well the tho dis- dis disclosure dis disclosure closure this week of ot straIned re- re relation re relations lations lation between the United Stat s san an nod l Mexico 1 I revelation of ot the some some- what some what acute status of at affairs b between tween the two nations was not unlike hearing that thata R a friend who who- had 1 been an Invalid for many mol months month II was w weaker aler American In Mex tx Mexico ico leo aggregate more than a billion dollars and through corporation stock ownership affecting direct direct- directly directly directly ly probably a I million citizens of of o othis this country would be placed in more or less len jeopardy were dip clip diplomatic dip diplomatic lon relations between the re- re repUblics republics re republics publics severed But It Is cx- cx ex exactly acOy because a large largo part of oC same investments already are threatened that the tho present situation has arisen LY HOSI-LY RURAL Mexico's Inhabitants about about equal the population o Pennsylvania find Ohio Combined nr are scattered over Cr over Its Us square miles I of ot area a territory almost nine times as great as that ot of- these those two t states Seventy per percent percent cent of Its population Is rural it II Is It a country of ot extremes wealth confronts haggard poverty renowned universities are con con con- contrasted contrasted with a high percentage ot et illiteracy Under such circumstances circumstance it Is not surprising that mush mu h ot of the development ot of the great wealth of oC natural resources of ot Mexico has Jas been the result of or foreign capital While American money has been ben poured poured- Into the south south- southern em ern rn republic especially In the thc la lat t 2 years cars British Dutch and G Gr- Gr Grman inan Gy-inan man Investors also Iso have a lar stake there Mexico welcomed foreign investments In Investments vestments which gaD gaw opportunities opportunities ties for the tho labor of oC the coun colic country try tiT and produced cd a heavy reve revenue nue flue from Crom ta taxation while nt dt the same samo time lime setting ah alt example to fo her her cr own moneyed people The rhe present strained strai ned relations relation the United States States- and the sister republic are not du dus to toa t ta ca a desire b by the United States to protect protect- any of Its nationals who are arc exploiting 1 Mexico illegally hut but are the tho result of ot what the state elate department considers fail failure tall fail uro ure to e execute an agreement reached b by a mixed commission In 1323 1923 and and and- which led to recognition of ot the government go of ot Prest- Prest President dent Obregon gon Under thi this agree agree- agreement agreement agreement ment It t was made plain that the thc provisions of or article 27 17 ot of tIps the n constitution of ot 1917 cop I con concerning corning property rights tor for for tor- for foreigners eigners In Mexico should not be considered retroactive and the United States resene reserved all of o Its rights under International l lw lv v nith Ith respect to Its Its own nation als ala new new Article 27 or of Mexico's new con con- constitution con constitution declares that the to mineral minerai and other deposits Is in the tho th people ot of that na- na nation na tion and that only Mexicans and Mexican corporations have ha the in 6 w LV uw oil t- t The article stipulates that thata a foreigner may nifty secure such a aright aright aright right only It If he renounces the thc privilege of ot appealing to gov his his gov- gov government for tor dress through dip dip- diplomatic dip diplomatic channels Foreign cor cor have felt Celt that the in- in intent In Intent tent of this part ot of the constitution constitution tion and its b- b the Mexican authorities amounted to confiscation InCH IN X MINERALS LS Mexico has a wealth of at min mm- minerals min minerals orals which thich have halo been mined for tor centuries by friend and foe toe with her Iter resources still being scarcely scratched She produces now about third one-third of at all aU the silver In the world About of American Ame capital Is Invested Invented In l alone In the southern re- re republic republic re republic public While oil production at present is tha tha center of oC attention apparently because oil Intrigues ues the public Imagination more moro than ore ore ore- It Is only In comparatIvely Cly recent years that Mexico Melco has been beena II a heavy y producer of petroleum For the last five Che years ears its out out- output output out output put has averaged ed more than barrels annually So tar far as concerns commerce withdrawal ot of recognition of o the Calles go ern government ent probably would have o a a bad effect on some Amer Amer- ican American lines but the record of o pta pre pre previous similar situations between two countries falls tails to substantiate substantiate substantiate ate any tear faar that trade would be cut ott Olf entirely Trade with the United States both Joth oth as to ta Imports and exports was heavier last year ear than ever before beCore but less than 20 per cent cent- greater than prior to the tho recognition of tips the Obregon government Out Our Imports tram from Mexico last rl r were valued at while exports to- to to tailed totalled The eco ceo eco economic comic boycott boy ott within Mexico due to the religious controversies aI- aI al already ready has caused a slump In American i exports this year MUST SET EXT Although a billion dollars of 18 are not to be bo con con- considered conSidered con considered lightly American busi bUill- busi- busi business business ness apparently feels that even In evenIn the most niost extreme case hebe ts could could not be bo wiped out although they thy might s1 shrink I In value alue Precedent Is there Is the thought tha If the United d States does doe 11 not nt t a as- as assert sert ai-sert sert Its right under in- in international in law to protect the le- le legitimate le legitimate Interests of ot Iti als als abroad the hazard to oth other r billions ot of Am which Is placed In n other uther ther countries s would be become como great grat great 00 |