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To: navyblue
The Mexican Constitution of 1917 gave the state the right to expropriate property, including that owned by foreign nations, when the property was deemed useful for improving social conditions. This caused rising US tensions in the 1920’s.Because of a good neighbor policy, the United States accepted compensation for seized assets. The United States did enforce a boycott of Mexican oil for thirty years.

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37 posted on 07/01/2006 3:11:43 PM PDT by kcar
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To: kcar
The United States did enforce a boycott of Mexican oil for thirty years.

Slightly off-topic, but no, despite some hotheaded calls for a boycott by some in the U.S., and a short diplomatic break with the British, and a few months when the Mexicans played hardball, sending a few tankerloads to the Germans (real hardball, given Mexico's officially anti-fascist stance), and threatening to hire Soviet engineers, everything went relatively smoothly. For one thing, the U.S. -- and the British needed the oil. Even before Mexico entered the war (after tankers were sunk by U-boats in May 1942), it was supplying oil to the allies. After entering the war, much of the nationalization debt was written off in exchange for selling the oil below market prices.

Paying compensation was made a matter of national pride. A propaganda photo at the time shows the first lady contributing her wedding ring to a collection raised to pay the bills.

International arbitration set the final bill and terms of repayment. The U.S. and Dutch owners were paid off ahead of schedule, the British (being jerks about the whole thing) had to wait -- but still a year ahead of schedule.

42 posted on 07/02/2006 12:42:52 AM PDT by rpgdfmx
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