<P> Following the end of the military phase of the Mexican Revolution, there were claims by Americans and Mexicans for damage during the decade - long civil war . The American - Mexican Claims Commission was set up to resolve them during the presidency of revolutionary general Alvaro Obregón and U.S president Calvin Coolidge . Obregón was eager to resolve issues with the U.S., including petroleum, in order to secure diplomatic recognition from the U.S. Negotiations over oil resulted in the Bucareli Treaty in 1923 . </P> <P> When revolutionary general Plutarco Elías Calles succeeded Obregón in 1924, he repudiated the Bucareli Treaty . Relations between the Calles government and the U.S. deteriorated further . In 1926, Calles implemented articles of the Mexican Constitution of 1917 that gave the state the power to suppress the role of the Roman Catholic Church in Mexico . A major civil uprising broke out, known as the Cristero War . The turmoil in Mexico prompted the U.S. government to replace its ambassador, appointing a Wall Street banker, Dwight W. Morrow to the post . Morrow played a key role in brokering an agreement between the Roman Catholic hierarchy and the Mexican government which ended the conflict in 1929 . Morrow created a great deal of good will in Mexico by replacing the sign at the embassy to read "Embassy of the United States of America" rather than "American Embassy ." He also commissioned Diego Rivera to paint murals at the palace of Hernán Cortés in Cuernavaca, Morelos, that depicted Mexican history . </P> <P> During the presidency of revolutionary general Lázaro Cárdenas del Río, the controversy over petroleum again flared . Standard Oil had major investments in Mexico and a dispute between the oil workers and the company was to be resolved via the Mexican court system . The dispute, however, escalated, and on March 18, 1938, President Cárdenas used constitutional powers to expropriate foreign oil interests in Mexico and created the government - owned Petroleos Mexicanos or PEMEX . Although the United States had had a long history of interventions in Latin America, the expropriation did not result in that . U.S. President Franklin D. Roosevelt was implementing the Good Neighbor Policy, in which the U.S. eschewed the role of intervention and courted better relations with the region, which would be vital if another major conflict broke out in Europe . However, with the Great Depression, the United States implemented a program of expelling Mexicans from the U.S. in what was known as Mexican Repatriation . </P> <P> When the U.S. did enter World War II, it negotiated an agreement with Mexican President Manuel Avila Camacho to be allies in the conflict against the Axis powers . The U.S. bought Mexican metals, especially copper and silver, but also importantly implemented a labor agreement with Mexico, known as the Bracero Program . Mexican agricultural workers were brought under contract to the U.S. to do mainly agricultural labor as well as harvesting timber in the northwest . The program continued in effect until 1964 when organized labor in the U.S. pushed for ending it . In 1940 Roosevelt appointed Nelson Rockefeller to head the new, well - funded Office of the Coordinator of Inter-American Affairs . Anti-fascist propaganda was a major project across Latin America, and was run by Rockefeller's office . It spent millions on radio broadcasts and motion pictures, hoping to reach a large audience . In addition to propaganda, large sums were allocated for economic support and development . Madison Avenue techniques generated a push back in Mexico, especially, where well - informed locals resisted heavy - handed American influence . Mexico was a valuable ally in the war; many of the long - standing disputes about oil were resolved and relations were the warmest in history . The usually strident anti-American voices on the far Left were quiet because they U.S. and USSR were allies . After years of debate, Mexico sent a small air unit into the war in the Pacific . An arrangement was made whereby 250,000 Mexican citizens living in the United States served in the American forces; over 1000 were killed in combat . </P>

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