Catherine E. Jayne, Ph.D.

American and British Reactions to Mexico’s Expropriation of Foreign Oil Properties, 1937-1941

This work by Catherine E. Jayne sheds fascinating light on the few years before Germany and Japan initiated the Second World War. Relations between Mexico and the United States from 1937 to 1941 marked the end of a century of predatory actions against our neighbor, such as our naval occupation of Vera Cruz and the invasion of northern Mexico chasing the revolutionary leader Pancho Villa.

As we proceed with NAFTA and the fusion of these societies, Jayne helps us look back to when President Franklin D. Roosevelt opened a new chapter in bilateral relations with his so-called "Good Neighbor Policy."

In 1938, Mexican President Lazaro Cardenas nationalized the petroleum industry, alleging arrogance and violations of law by English and American firms, which dominated this vital national resource. Policy makers in both countries called for strong action to protect national interests there, in keeping with historical precedents. England was still the preeminent imperial power, but it tried hard to persuade the United States to side with her. Hitler was becoming a threat to England, and secure sources of petroleum were vital to her interests as far away as Asia.

At this juncture, the author points out by means of both American and English documents that FDR and Josephus Daniels, the American Ambassador in Mexico, shaped a new approach to bilateral relations, namely positive persuasion based on long-range mutual interests, which culminated in a peaceful solution to the expropriation of American properties shortly before the Japanese attack on Pearl Harbor. England, whose competing interests in our back yard inspired American resentment, was forced to accept American hegemony in the American continent because she needed us desperately after war in Europe broke out in 1939.

A dominating attitude toward Mexico has died hard. During my time as American ambassador to Mexico, the Pentagon asked for permission to stage live-ammunition exercises within earshot of Vera Cruz. The objective was to frighten Mexico into selling us more oil during the Arab oil boycott that wrecked our economy and doomed Jimmy Carter’s presidency. I invited the naval officials to go over my head to President Carter, if they wished. Despite the icy stares of admirals at this former lowly American sailor, nothing was heard about this again. Clearly they were acting on their own.

This readable and informative work is a major contribution to understanding the development of bilateral relations through the telling of a vital episode that showed American foreign policy, specifically the work of Daniels and Roosevelt, at its best.

Professor Julian Nava served as U.S. Ambassador to Mexico in the administration of Jimmy Carter.