Enforcements Begin

One hundred and seventy-nine permits to U. S. oil companies operating in Mexico were canceled by the Calles Government last week, under the so-called confiscatory Mexican laws pertaining to land and oil (TiME, Jan. 25, 1926 et seq). The U. S. oil operators affected by these cancellations prepared to begin litigation through the Mexican courts to prevent actual seizure of their properties.

There is a possibility that a test case, if rushed, can be gotten through the Mexican Supreme Court by next May or June. The immediate effect of cancellation of permits was to throw some 3,000 Mexican laborers who had operated the wells out of work. The Mexican Government appeared disposed to wait until the Mexican Supreme Court had ruled before taking action to alleviate the situation.