In very short terms: We forcibly bought a costly operation that was in productive decline, and the US had enough in its hands to make a big fuzz about it. Also, World War 2 was brewing and the US needed Mexico to fly planes to Panama so yeah.
Less short but still very short explanation: The oil worker's union went on strike. The oil companies were making huge bucks in Mexico, more than in the US itself, but their fields here were costly and in productive decline. No resolution between both parties could be reached, so the government had to step in so the country didn't grind to a standstill without oil. When President Cardenas presented the companies with terms, they laughed in his face (according to some, literally), so Cardenas laughed back with a paper that said the oil companies were now ours. The companies started a PR and boycott campaign to manufacture consent and tarnish Mexico's reputation, but the US was still grappling with the aftershocks of the Great Deppression, and FDR had already stated his "Good Neighbor Policy" of non-intervention. Also, Mexico at this time was very left-wing by the US' standards, but nationalistic, wary of foreign intervention, and very stable. There was concern that sanctioning Mexico or destabilizing it could push it towards the USSR. So instead of bringing FREEDOM to Mexico, the US State department mediated between the Mexican government and the companies to agree on compensation for expropriation, for around 200 million USD, which was payed definitely in 1962. You can still meet people from around that time who bought bonds to pay for the expropriation.
Also, thanks to this, Mexico sold oil to both Nazi Germany AND the US during World War 2. Ain't capitalism beautiful?
Amlo's a succdem.
He's about as good as you can get without significantly challenging the US in any way.
He's trying to incrementally expand the role of PEMEX, the state owned Mexican oil company so these absolute ghouls are gunning for him anyway.
Wait, a state owned oil company in Latin America? How did they manage that?
In very short terms: We forcibly bought a costly operation that was in productive decline, and the US had enough in its hands to make a big fuzz about it. Also, World War 2 was brewing and the US needed Mexico to fly planes to Panama so yeah.
Less short but still very short explanation: The oil worker's union went on strike. The oil companies were making huge bucks in Mexico, more than in the US itself, but their fields here were costly and in productive decline. No resolution between both parties could be reached, so the government had to step in so the country didn't grind to a standstill without oil. When President Cardenas presented the companies with terms, they laughed in his face (according to some, literally), so Cardenas laughed back with a paper that said the oil companies were now ours. The companies started a PR and boycott campaign to manufacture consent and tarnish Mexico's reputation, but the US was still grappling with the aftershocks of the Great Deppression, and FDR had already stated his "Good Neighbor Policy" of non-intervention. Also, Mexico at this time was very left-wing by the US' standards, but nationalistic, wary of foreign intervention, and very stable. There was concern that sanctioning Mexico or destabilizing it could push it towards the USSR. So instead of bringing FREEDOM to Mexico, the US State department mediated between the Mexican government and the companies to agree on compensation for expropriation, for around 200 million USD, which was payed definitely in 1962. You can still meet people from around that time who bought bonds to pay for the expropriation.
Also, thanks to this, Mexico sold oil to both Nazi Germany AND the US during World War 2. Ain't capitalism beautiful?