The Mexican expropriation of British and American properties in
March 1938 marked the first time any oil-producing country
successfully stood up to foreign companies who claimed to own oil
properties in that country and who had the support of their
respective governments. Totally reliant on overseas oil at a time
when war seemed imminent, British officials responsible for policy
toward Mexico immediately emphasized the importance of preventing
other oil-exporting nations from following Mexico's lead.
Washington also sought to make an example of Mexico--one that would
guarantee respect for U.S. businesses operating abroad.
Although both Washington and London wanted to return to the
pre-expropriation status quo, Washington was unwilling to work with
London to achieve this goal, and Washington's attitude paralleled
its reaction to British efforts to get U.S. support on certain
defense issues during this critical period. The resulting
Anglo-American strife over how to handle Mexico was also consistent
with Anglo-American commercial competition and the oil rivalry in
Mexico early in the century.
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