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Last week foreign oil companies, already vastly excited over the expropriation, suddenly heard a rumor that the Board of Arbitration was about to decide in favor of the $7,000,000 wage increase previously ordered. Immediately the oilmen got together, announced that they would "suspend operations" and abandon the country rather than pay it. It was at that point that President Cárdenas, who has plenty of resolute and resourceful Indian blood in his veins, called in representatives of Mexican Eagle Oil Co., affiliate of British Royal Dutch-Shell which already controls 60% of Mexican oil production. He handed them an agreement promising them full control of the Poza Rica field, 7,700 of whose 13,000 proven acres Eagle already holds. In return Eagle agreed to give Mexico 15% to 35% of the petroleum it produced, varying with type and amount. Britain and Germany both began bargaining to buy from Mexico whatever portion of this oil royalty Mexican industry does not consume.
From the British point of view the concession is like money from home. It gives Great Britain a huge oil reserve which can be reached without passing through the Mediterranean, where she no longer has undisputed control. From the U. S. point of view the move looked like an astute means of splitting the unified stand of the foreign oil companies on the wage question.
*After the U. S., 3,455,000 bbl.; Russia, 517,000 bbl.; Venezuela, 502,000 bbl.; Iran, 191,000 bbl.; Netherlands Indies, 148,000 bbl.; Rumania, 146,000 bbl.