lizard lips
Super Nomad
Posts: 1468
Registered: 8-30-2002
Location: EARTH
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Mexican Holidays Monday
Benito Juarez Birthday and Oil Expropriation Day are this Monday March 18, 2013.
Banks, schools, and government offices will be CLOSED!
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shari
Select Nomad
Posts: 13047
Registered: 3-10-2006
Location: bahia asuncion, baja sur
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Mood: there is no reality except the one contained within us "Herman Hesse"
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thank for reminding us...dang...Monday was gonna be a bank day...the lagoon will be crowded then with school kids I bet.
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DavidE
Ultra Nomad
Posts: 3814
Registered: 12-1-2003
Location: Baja California México
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Mood: 'At home we demand facts and get them. In Mexico one subsists on rumor and never demands anything.' Charles Flandrau,
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Cut And Paste From Wikipedia
The Mexican oil expropriation (Spanish: expropiación petrolera) (also petroleum expropriation, petroleum nationalization, etc.) was the expropriation
of all oil reserves, facilities, and foreign oil companies in Mexico on March 18, 1938. It took place when President and General Lázaro Cárdenas
declared that all mineral and oil reserves found within Mexico belong to the nation.
It is one of the Fiestas Patrias of Mexico, celebrating the date when the President, General Lázaro Cárdenas, declared that all oil reserves found in
Mexican soil belonged to the nation, following the principle stated in the Article 27 of the Constitution of 1917. This measure caused an
international boycott of Mexican products in the following years, especially by the United States, the United Kingdom and the Netherlands.
Contents
1 Background
2 Legal conflicts
3 March 18, 1938
4 Opposition
4.1 International
4.2 Local
5 See also
6 References
Background
History of Mexico
Coat of arms of Mexico.svg
Pre-Columbian
Spanish rule[show]
First Republic[show]
Second Federal Republic[show]
1864 – 1928[show]
Modern[hide]
Maximato (1928–1934)
Petroleum nationalization
Mexican miracle
Students of 1968
La Década Perdida
1982 economic crisis
Zapatista insurgency
1994 economic crisis
PRI downfall
Mexican Drug War
Timeline
v
t
e
The political support of labor unions and the founding of Petromex (now called Pemex) immediately after taking power by President Lazaro Card##as,
were the proximate events closest to the Petroleum Expropriation.
In 1924, after several failed strike efforts and break-ups by the Mexican Army, a strike began in Tampico against the refinery “El Aguila”, in which
workers emerged triumphant and achieved recognition from the management for the labor union and reached a collective bargaining agreement.
On August 16, 1935, the Petroleum Workers Union of Mexico (Sindicato de Trabajadores Petroleros de la República Mexicana) was formed and one of the
first actions was the writing of a lengthy draft contract transmitted to the petroleum companies demanding a 40 hour working week, a complete paid
salary in the event of virtually unlimited time off for personal or family sickness, and claimed to replace the distinct collective contracts
governing labor relations.
On November 3, 1937, the union demanded that the companies sign the collective agreement and on May 17, the union summoned a strike in case their
demands were not met. In the early days of June, the union sued the companies before the General Arbitration and Conciliation Board (Junta General de
Conciliacion y Arbitraje). The aforementioned strike started on a limited basis on May 31 and fully burst open on June 9.
The petroleum workers struggle was well regarded by the President and the population despite problems caused by the petroleum shortage. In July, as
instructed by the arbitration board, a commission of financial experts was formed that investigated the petroleum companies finances, concluding that
their profits easily permitted them to cover the demands of the workers. The companies, however, insisted the demands would cripple production and
bankrupt them.
But, on December 8, the companies hired other unemployed workers and had not responded to the arbitration board. On December 18, 1937, the board gave
a verdict in favor of the union by means of a “laudo” (binding judgment in arbitration) which demanded that the companies fulfill the requirements of
the petitions and pay 26 million pesos in lost salaries. The petroleum companies initiated a lawsuit on January 2, 1938 before the Mexican Supreme
Court to protect their property from the labor union and arbitration board, which denied the request.
Consequently, the foreign companies rebelled against the imposed contract, and the maximum Judicial Authority responded by rendering a decision on
March 1, giving the companies until March 7 to pay the 26 million pesos penalty.
In 1935, all companies in the business of extraction, processing, and exporting of oil in Mexico were foreign companies with foreign capital. These
companies attempted to block the creation of labor unions and used legal and illegal tactics to do so. However, the creation of individual unions
within each company was made possible, but work conditions differed from one another.
On December 27, 1935, the Sindicato Único de Trabajadores Petroleros was created, despite the legal opposition in the states of Tamaulipas and
Veracruz. On January 29, 1936, this union joined the Comité de Defensa Proletaria ("Committee of Proletarian Defense") which would become in February
the Confederation of Mexican Workers (CTM). On July 20, the union celebrated its first convention, in which it was proposed a project of general
contracts for each oil company and it was decided on a strike to push towards an agreement.
Lázaro Cárdenas intervened between the union and the oil companies in order to force an agreement on the contract. The strike was delayed for six
months, but the companies never agreed to the contract and on May 28, the strike took place. The entire country was paralyzed for 12 days, with
consumers unable to buy gasoline. Cárdenas convinced the union to end the strike until a decision by the companies could be made. However, the
companies declared themselves unable to meet the demands because of financial problems. Cárdenas ordered an investigation and on August 3, the
findings were that the Mexican oil industry produced higher returns than the U.S. oil industry.
Legal conflicts
After the publication of the findings, the oil companies threatened to leave Mexico and take all of their capital with them. The government entity in
charge of the conflict between these companies and the union, the Junta Federal de Conciliación y Arbitraje (Federal Conciliation and Arbitration
Board), was not able to make a decision quickly and the union declared a 24-hour strike in protest on December 8.
On December 18, the Arbitration Board declared in favor of the union. The oil companies had to pay 26 million pesos of wages lost because of the
strike, but they appealed to the Supreme Court. The Supreme Court then rejected the appeal and ordered them to raise salaries and improve working
conditions for the union members. The oil companies protested this decision and President Cárdenas mediated a compromise; the union would accept 26
million. Cárdenas offered to end the strike if the oil companies paid the sum. According to witnesses of this meeting, representatives of the oil
companies asked the President "Who can guarantee that the strike will be over", to which the President replied "I, the President of the Republic."
After the businessmen asked with sarcasm "And who guarantees your word Mr. president?" President Cárdenas ended the meeting saying "Sirs, we are
finished!".
As a result, Cárdenas decided to expropriate the oil industry and create a national oil company.
March 18, 1938
On March 18, 1938 President Cárdenas embarked on the expropriation of all oil resources and facilities by the state, nationalizing the U.S. and
Anglo-Dutch (Mexican Eagle Petroleum Company) operating companies. Two hours before informing his cabinet of his decision, he made the announcement on
the radio to the rest of the country. Five days later, a crowd of 100,000 (according to the press) rallied in support of Cárdenas (see photo).
On April 12, 1938, a crowd of thousands of women gathered in front of the Palacio de Bellas Artes to make donations to pay the debt to foreign
companies. Donations varied from chickens to jewelry, since the women encompassed all social classes.
On June 7, 1938, President Cárdenas issued a decree creating Petróleos Mexicanos (PEMEX), with exclusive rights over exploration, extraction,
refining, and commercialization of oil in Mexico. On June 20, PEMEX started operations.
Opposition
International
In retaliation, the oil companies initiated a public relations campaign against Mexico, urging people to stop buying Mexican goods, and lobbying to
embargo US technology to Mexico. Many foreign governments closed their markets to Mexican oil, hoping that PEMEX would drown in its own oil. Between
1938 and 1939, PEMEX survived by trading oil for money and machinery to European countries with fascist governments. In spite of the boycott, PEMEX
developed into one of the largest oil companies in the world and helped Mexico become the world's fifth largest oil exporter.
During World War II, American and British governments blocked Mexican oil exports to their allies and dependencies. The US stopped buying Mexican
silver for the Treasury.
Local
Saturnino Cedillo, a cacique from San Luis Potosí and former Secretary of Agriculture, showed the strongest opposition to Cárdenas's measures. Cedillo
had in the past supported Cárdenas in a conflict with ex-President Plutarco Elías Calles, but disagreed with his plan of reforms. On May 15 of the
same year, the state congress of San Luis Potosí issued a decree where it refused to recognize Cárdenas as President and declared that the
expropiación petrolera did not benefit the economy of Mexico. Cárdenas did not consider this a serious threat and minimized efforts to suppress the
rebellion, instead choosing persuasion. The US government did not support the rebellion because it was more concerned that fascist and communist
movements from Europe would spread to Mexico.
The key to the success of the measures taken by Cárdenas was not just to control the opposition, but to keep afloat an industry in the absence of
qualified personnel. The government had to depend on the Sindicato de Trabajadores Petroleros de la República Mexicana (STPRM, or the Union of Oil
Workers of the Mexican Republic) to resolve disagreements over the management of oil resources, and deal with threats of strikes and sabotage. In
spite of these and technical challenges, local workers who replaced the foreign technicians were successful in making the new nationalized oil
industry work. Josephus Daniels, U.S. ambassador to Mexico, explained to President Franklin D. Roosevelt and Secretary of State Cordell Hull that
Cárdenas' reforms could not be undone, since his position as president and the position of PEMEX were secure.
A Lot To See And A Lot To Do
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David K
Honored Nomad
Posts: 64759
Registered: 8-30-2002
Location: San Diego County
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Mood: Have Baja Fever
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In the 1950's and early 60's there still were Standard Oil and Union 76 gas station signs still in Baja... When was the Pemex purge of competition
complete? I only remember Pemex since my first trip in '65.
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MexicoTed
Senior Nomad
Posts: 708
Registered: 8-2-2004
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Good I can recover from St. Patrick's Day!!!
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Udo
Elite Nomad
Posts: 6343
Registered: 4-26-2008
Location: Black Hills, SD/Ensenada/San Felipe
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Mood: TEQUILA!
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For what it's worth , DK...
I was in Venezuela from 1950 through 1963.
At that time the US oil companies were in control of Venezuela's oil reserves. The Venezuelan citizens were totally anti-American at that time (and it
is even worse now).
Then in the early seventies, the Venezuelan government nationalized the oil reserves and we know what the rest of the story is now.
PEMEX is now going the opposite way.
The US initially tried to get into the Mexican oil market, but Mexico resisted.
But guess what...
Pemex is now asking the US oil companies to invest into exploration and other entities.
However, I do not see the US EVER going back into Venezuelan oil.
| Quote: | Originally posted by David K
In the 1950's and early 60's there still were Standard Oil and Union 76 gas station signs still in Baja... When was the Pemex purge of competition
complete? I only remember Pemex since my first trip in '65. |
[Edited on 3-16-2013 by Udo]
Udo
Youth is wasted on the young!
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