Show W MORROW 1 FACES I TImE ISSUES WHEN HE lIE ARRIVES m ES 1 IN 1 I MEXICO l the EDITORS EDITOr NOTE KOTE- This Is the third of ot a 0 series of o four articles on our policy poy toward t Mexico as affect affet- affected ed by b ti appointment of Morro aa as ambassador Tomor- Tomor Tomorrow Tomorrows rows row iding article will w deal ded tha th forthcoming Mexican presidential eleton cleton Ey By RODNEY NEIL NEA loa Service Writer WASHINGTON OCt II When When the th Hon DwIght Morrow arrives In Mexico as our nsw naw n w ambassador the chief matters which will occupy his will be be 1 The I.-The The Mexican oil land laws 2 The The payment of ot Interest on Mexican m bonds held hel In this country and abroad 3 The The Mexican presidential elec elec- tion All these problems are arc more or orless orless less tied up with each other and andare andare andare are of ot considerable interest to the people of ot the United States The petroleum laws question I which caused a nasty exchange of ot notes and considerable talk of oJ in intervention In- In Intervention less than a year yeu ago has to a diplomatic deadlock between the two governments which is still shot with possibilities If It the Mexican supreme court decides the laws hews are arc not net constitutional constitutional tlona the Issue will be dead But if it decides the other way nay and the Calles government seizes Ameri Amen American American can property It is still st likely that the arms embargo will be lifted and the Mexico hill hili by design be plunged Into chaos The em em- embargo embargo embargo bargo remains this country's big club chub over Mexico The situation has been been sa eased sa d to date by President Calles' Calles arlous various concessions and his failure to confiscate any oil lands hands Unless he commits some unexpected overt act it may be that with Mor Nor Morrow Morrow row now In Mexico City the situation eventually will sill be solved by arbi arbi- arbitration arbitration as recommended so over over- overwhelmingly overwhelmingly by the United States senate Incidentally the big reason that this government feels It cant can't al allow al- al allow allow low Mexico to enforce her oil land hand laws lass Is that a precedent would be established for northern countries of South America where we have huge huce oil stakes By Dy providing for forthe forthe forthe the 50 year concessions the Calles government has demonstrated that it doesn't Intend to prevent our companies from getting all the oil out The reader may may recall recall one or two reports within the last year ear concerning the doubtful ability of ot Mexico to make her annual bond Interest payment amounting to near near- nearly nearly ly hy These reports were not riot exaggerated Her internal religious troubles and her row with foreign oil In Interests In- In Interests forests have not left heft Mexico In ex excellent ex- ex excellent financial condition The oil companies have drastically curtailed Mexico production putting a crimp In tax collections This curtailment was due either cither to a desire to retaliate against Mexico or to the overproduction In this country country or or both Mexico came through last year with her first payment since the tile fall of ot Porfinio Diaz She has con con- continued continued continued just about to make the grade The Panl-Lamont Panl agree agree- agreement agreement agreement ment calls for monthly payments the balance to be made up at nt tho the end of the year car Preal- Preal President President dent Calles Incidentally allowed only 8 per cent for oil taxes In his 1927 1527 budget and on his budget for next year ye r has failed to enter any credit for oil oU taxes whatever Morrows Morrow's presence In Mexico City will be so much added In Insurance In- In Insurance insurance for continued payments If Mexico falls tails down dowis on them her credit is virtually ruined through through- throughout out the world Morrow undoubtedly will be Interested In keeping ke Mexico In a 1 position where she I he can pay p y and his financial mind will also the possibilities for eventual repayment of the tho bonds' bonds principal The rhe Morrow appointment also seems to Improve Alvaro Alyaro Obre- Obre Obregon's Obregon's gons gon's chances for the tho presidency In the first place Obregon would surely maintain a stronger gov gov- government than any other candidate now In the field Secondly Obre- Obre Obregon Obregon gon was the Mexican sponsor of the Payne Warren and La Patti mOnt agreements The first accord has h s been waved by this government In the oil laws las dispute to be met by tho the Calles governments government's assertion that subsequent Mexican laws did cud not i k el j C Alvaro Obregon as a. a caricaturist 1st saw him violate a It and a that t even f If it they did It was only IY a agreement I e ethe with the Obregon government which did not no bind ns n's successors sors cors It was only on Ithe Ithe signing sl of ot these agreements thit th t this gov gov- government government government recognized Obregon Oregon and Invoked the arms embargo in such sucha a way that he was able to contin contin- continue ue to hold power With V Obregon president again it is believed that this government could hold him to his own agreements |