Evening star., 1939-10-09
Davis Is Reported
In New Reich Deal
For Mexican Oil
US. Operator Soid to Have
Gone to Lisbon Via
Rome After TuIks
By JOHN T. WHITAKER,

BY JOHN i. WHlTAhER,
Chicago Daily News Foreign Correspondent.
ROME. Oct. 9.-W. r. Davis,
American oil operator. who has dis
posed in the past of Mexican oil
produced by the Cardenas govern
ment from the appropriated wells
of the Standard Oil and Dutch
Shell Co.'S, has just made secret
visit to Berlin, it is revealed here
today.
With virtually the whole Mexican
production in his hands, Mr.. Davis
discussed with important Nazi Of
flcials, it is believed, measures for
payments and means to circumvent
the blockade of the British and
French, who, under international
law, can seize such shipments.
Mr.. Davis returned here last week
from Berlin and left for Lisbon"
on Wednesday. 1t was assumed
that he was returning to America
by Clipper Immediately, but Niles
Hansel, another American operator
who is believed to be working here
for Mr.. Davis, left for Lisbon on
Saturday. Perhaps Mr.. Davis mere
ly managed to throw off his trial,
agents who were checking his con-
trnband plans.
Deal Declared Consummated,
Wherever Mr.. Davis may be. in
formed quarters here understand
that he consummated a deal in Ber-
lin. If that be so, the Germans
must provide not only gold or
something equally valuable to the
Mexican government, such as ships
or machinery, but also a system of
indirect consignments and trans
shipments.
Oil consigned directly to Germany
could be halted and taken into prize
court by any British or French war
ship. The British and French could
not ask anything better than Mexi-
can oil without paying for it and
their blockade is too effective to let
tankers slip through.
Germanys best bet lies in ship
ments to the Balkan countries who,
whether they like it or not, can
scarcely refuse to carry out the
orders of the mighty German war
machine which casts its shadow
deep into Hungary, Yugoslavia, Ru-
mania and Bulgaria. These coun-
tries already have felt German
pressure to adopt benevolent neu-
trality.
Germany Uses Hungarian Cars.
In Trieste, for instance, this cor
respondent found that the Germans
were using Hungarian rolling stock.
The Italians quite naturally want
to conserve their own railway equip
ment and, like Yugoslavia, which
is still waiting for the return of
freight cars now incorporated in
the German railway system, are
declining to send their own rolling
stock across the frontier. Conse-
quently, the Germans undoubtedly
ordered Hungary to make available
for German use tank and other
cars I saw carrying produce for
Germany from Trieste.
The British and French cannot
reproach the Italians for permitting
shipment through Triests of these
goods consigned to Germany which
I saw moving 200 oil tankers
were moved in fortnight. Twenty
seven German vessels had gone to
Triests during the opening days of
the war. They had the right to be
there and the right to unload their
goods. But while permitting this,
the Italian authorities had to let
Trieste commercial agents know
that the government feels that at
this time trade with the gold coun-
tries would improve Italy's adverse
balance.
tCopyright. 1889, by the Chicago Daily
News, 1nc)