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Lázaro Cárdenas del Río

May 21, 1895 – October 19, 1970

was ageneralin theMexican Revolutionand astatesmanwho served asPresidentofMexicobetween 1934 and 1940.

He is best known fornationalization of the oil industryin 1938 and creation ofPemex, the government oil monopoly.

Originally Cárdenas was the hand - picked candidate of former presidentPlutarco Elías Calles

who founded thePartido Nacional Revolucionarioin 1929 and who remained the power behind the president.

Cárdenas out - maneuvered Calles politically and forced the former president into exile, establishing Cárdenas's legitimacy and power in his own right.

His administration overhauledagrarian reform, initiated by the Mexican Revolution, and createdejidosin the Mexican agricultural sector, which gave peasants access to land, but did not give individual titles to it.

Central to Cárdenas' economic project was the nationalization of Mexico's vast oil production in order to secure both more revenues and national control over natural wealth.

An oil boom had taken place following strikes in 1910 in the area known as the "Golden Lane" or "Golden Belt", nearTampico.

Oil drilling in such areas resulted in Mexico becoming the world's second - largest oil producer by 1921, and supplying approximately 20 percent of domestic demand in the United States.

But the Tampico fields decline markedly after 1923, and much US oil investment went to Venezuela.

Cárdenas' efforts to negotiate for a greater return fromMexican Eagle, under the managerial control ofRoyal Dutch / ShellandStandard Oil of New Jersey, were not successful.

The companies rejected a solution proposed by a presidential commission.

On March 18, 1938, Cárdenas nationalized Mexico's petroleum reserves and expropriated the equipment of the foreign oil companies in Mexico.

The announcement inspired a spontaneous six - hour parade inMexico City ; it was followed by a national fund - raising campaign to compensate the private companies.