An Analysis Of American Government Policy On Mexican Oil Nationalization Reform, 1938-1941

On 18 March 1938, Cardenas issued a decree expropriating the oil properties of certain named companies:subsidiaries of Shell, and the American companies Standard Oil of New Jersey, Standard Oil of California. This article is to analyse from 1938 to 1941 American government policy on Mexican oil nationalization reform.On the eve of Mexican oil nationalization reform, without formulating clear-cut counter-measures American government did not interfere in the oil controversy between the oil companies and Mexico directly. Although American government was deeply concerned about overseas economic interests, it did not make reactions to Mexican labour controversy in favor of oil companies basically, because it also paid close attention to American stability. The reason of Cardenas government issued such a statement was that American government had modified the policy on Latin American countries. In order to follow the principles of consolidating American countries' stability and not interfering in their internal affairs, American government defended the Good Neighbour Policy, therefore the support it gave the oil companies was limited.From 18 March 1938 to 1 September 1939, the policy of American government on Mexican oil nationalization reform was from tough to mild. By taking the hard-line policy, it showed its protest to Mexican oil nationalization reform, in the hope of terrorizing other countries not to follow Mexico. Moreover, it cooperated with the oil companies by taking the boycott, in the hope of forcing the closure of Mexican oil nationalization reform. But in view of Mexican people's high national democratic emotions, American safeguard and the real influence of the boycott, it's policy on Mexican oil nationalization reform was to alleviate.From 1 September 1939 to 19 November 1941, American government took the compromise policy on Mexican oil nationalization reform. The Second World War broke out, which increased the threats of fascist countries to American safety. In order to keep Amercian stability and consolidate American countries' unity, it's policy on Mexican oil nationalization reform was to compromise. In addition, the powerful political pressure forced Roosevelt to come up with arbitration, which indicated American government officially began to compromise. On 1 May 1940, Mexican government issued the Sinclare Settlement, which further shook its determination to maintain the oil companies' interests. At the same time, German triumph in WWII intensified American concerns about defence, which forced it to take the policy of compromise further in order to settle the oil controversy as soon as possible. With the relationship between America and Japan and the Pacific situation deteriorating day by day, the United States thought that defence was more important than the oil companies' interests. In order to ensure Mexican military cooperation, on 19 November 1941, American government signed the last settlement with Mexico.