Great Britain has played a very clever game. As Phelan, the American Senator, wrote: "Her companies accommodate themselves to the political views of the Mexican Government." Moreover, they have all, from the Mexican Eagle down to subsidiary companies of the Royal Dutch like the Corona, been placed under Mexican law, which shields them from the effect of the Constitution of 1917. American companies, on the other hand, whether constituted under the laws of New Jersey, Texas or Delaware, remain foreign companies.
Since March 1922 they have been working out a plan for amalgamation, so as to form a powerful American group which could resist the demands of the Mexican Government.
The companies joining the group would be the Standard Oil, the Sinclair, the Texas Company of Mexico, the Atlantic Refining and the Mexican Petroleum. The Supreme Court of Mexico has decided[22] that properties acquired before the Constitution of 1917 was promulgated would not be confiscated—a declaration which has reassured the United States.
Mexico retains only 4 per cent. of her production. In 1920 alone she exported 153 million barrels out of the 159 million produced, keeping for home consumption only 6 million barrels. Seventy-eight per cent. of her production went to the United States. Every year Great Britain takes from Mexico more than 40 million gallons of illuminating oil, benzine and fuel oil. Mexico literally saves the world. Without her there would be a universal shortage of petroleum.[23]
FOOTNOTES:
[16] "During the last nine years," wrote a New York editor on the occasion of the last revolution, "there has not been a single disturbance in Mexico in which Americans have not taken part by lending their aid to the party opposed to the government.... Americans have supported Madero against Diaz, Huerta against Madero, Carranza against Huerta, Villa and Sapeta against Carranza."
[17] Secretary of State for the Interior, an ardent partisan of intervention. Mr. Fall is a believer in the slogan "Standard Oil must prevail."
[18] Evidence of Edward Doheny before Committee on Foreign Affairs of the United States Senate.
[19] Since elevated to the peerage under the title of Lord Cowdray.
[20] According to official statistics of July 2, 1920, the Mexican petroleum industry represents a value of 300 million Mexican dollars.