This article shows how Franklin D. Roosevelt(FDR)'s Good Neighbor policy affected the Latin American country's internal affairs by paying special attention to the Mexican expropriation policy of oil wells managed by foreign multinational corporations ...

This article shows how Franklin D. Roosevelt(FDR)'s Good Neighbor policy affected the Latin American country's internal affairs by paying special attention to the Mexican expropriation policy of oil wells managed by foreign multinational corporations in March 1938. During the Lázaro Cárdenas presidency, the multinational oil enterprises that had operated in Mexico soon came under severe criticism for their maltreatment of workers and their failure to adhere to Mexican laws and pay taxes. The Mexican workers who were considered largely underpaid, precipitated a series of strikes in the main oil production areas and the situation reached a point of crisis. On March 18, 1938, Cárdenas issued a decree that substantially expropriated oil wells of multinational corporations and nationalized the entire domestic petroleum industry.
Facing with the international crisis surrounding the oil expropriation, the Roosevelt administration consistently maintained Good Neighbor policy that would produce a longer effect regarding the national interests. Good Neighbor policy paved a more favorable foundation for pan-American cooperation that would function effectively as the Western hemisphere became closely involved with the wartime situation especially after summer of 1939. Because of its geographical proximity, vast natural resources, and a lack of appropriate protection of unguarded shores, unprotected oil fields and mines, Mexico became a main strategic concern for the U.S. defense project. From the U.S. perspective, this possibility was very significant for several reasons: Mexico shared southern border with the U.S.; Mexico was the second largest Latin American country in population; Mexico had more questions at issue with the U.S. than any of others, especially culminated in oil expropriation dispute; finally other Latin American countries considered the U.S. approach toward Mexico as a yardstick of the reliability of the Good Neighbor policy.
The Cárdenas' presidency has been recognized as the culmination of revolutionary nationalism in Mexico because of his reform politics such as agrarian and labor reform as well as the oil nationalization. Cárdenas was able to strengthen at least symbolically the economic independence by means of the expropriation of oil industry that had formerly been controlled by foreign companies, and took advantage of the wartime situation to avoid overall boycott of the Mexican oil products before the end of his and Roosevelt’s presidential terms. However, right after the promulgation of oil expropriation, his reform politics began to change its preceding radical orientation. FDR’s Good Neighbor policy exercised gradual influence on Cárdenas' change of pace in his internal politics and eventually succeeded in steering Mexico to a new phase of mutual cooperation.