Evening star., 1939-06-11
Mexico Is Reported
Seeking u. 5. Aid for
Oil Sales 10 Japan
Cash, Credit Said to Be
Asked for Improving Of
Tehuontepec RoiIrood
B, the Associated Press.

MEXICO CITY. June 10-The
Mexican government was reported
today to be seeking cash and credit
in the United States for development
of efficient rail facilities across the
1sthmus of Tehuantepec. which
would provide a direct outlet for oil
sales to Japan.
Informed sources asserted Ulysses
1rogoyan. former chief of the tariff
and railroad section of the Federal
Communications Department, had
gone to the United States to enlist
the help of shipping and financial
interests to back the necessary i'm
provements.
1rogoyan was said to be represent
ing the Mexican treasury. Official
information on his trip was not
forthcoming, but he was expected to
get in touch with both West Coast
and Eastern interests.
Oil Sales Big Problem.
The railroad across the isthmus-
which runs 1873 miles from the At
lantic to the Pacific side-now
handles 400 900 tons of freight yearly.
but requires approximately $1,000 900
for immediate Improvements or. one
authority estimated. S1000O0O0 to
put it in first-class condition.
Sale of oil from properties Mexico
appropriated from American and
other foreign concerns March 18.
1888, has been a major problem.
While MoviP0 hoc
details with Italy and Germany.
businessmen say these negotiations
have not worked out as we'll as had
been hoped
Mexico has been virtually cut out
of the Japanese market for oil by
lack of efficient direct communica-
tons from the oil-producing East to
the West and Of loading facilities
for petroleum on the Pacific Coast.
Buys Cheaper in California.
Japan finds it cheaper to get oil in
California than to buy at a lower
price in Mexico and pay tolls for
shipment from Gulf of Mexico ports
through the Panama Canal and
across the Pacific to Japan.
Government railroad experts sav
improvements of the present railroad
would create an important inter-
ocean commercial link and bring
welcome business to the worker
operated National Railways. Mel
quiades Angulo. minister of COM
munications and public works, said
after an inspection of the zone that
first-class rail line would involve
complete rebuilding of the present
railroad.
Petroleum loading facilities at
Salina Cruz at the Pacific terminus
of the line, are being studied with
view to new construction as part
OF Investigations undertaken by vari-
Gus government commissions.
Channel Deepened.
Government engineers recently
completed dredging project at
Salina Cruz and erected a break
water to keep silt out of the harbor.
The work deepened the channel to
"a feet. enough to permit the entry
OF large vessels. Such craft already
can enter Peurto Mexico, the At
lantic terminus. but the long haul by
way of the Panama Canal was said
to make freight charges prohibitive
for competition in the Asiatic
market.
The government is going to make
improvements in the isthmus trans
portation service just as fast as f.
nances permit" said one official.
Keep your eye on the Isthmus of
Tehauntepec, things are happening
down there"
Under study by government plan
ming commission is a proposal to
erect a pipe line across the isthmus
There have been reports that Japan
might help build the line, which
experts say would cost at least So
000, 900. But Japanese here discount
these reports as out of the question.