Evening star., 1947-04-20

NAASAh%1a VIVIAN Ahc W iidNc tllG pcuG-
tfit Of American technical know how
In production, and the marketing
facilities OF the big private COM
panies, in an effort to reverse this
situation and once again give the
Mexican government an income
from its oil resources. The United
States Government undoubtedly
would insist upon strict guarantees
to protect American financial in
terests from a possible future ex-
preparation row before agreeing to
encourage them to enter into some
arrangement with the Mexican gov
eminent.
While it is entirely speculative
that the oil problem will enter into
the discussions here at all, the talks
about American Government finan.
cial assistance to Mexico are gener-
ally expected to produce some early
concrete results. 1t hardly is likely
that the two chief executives will
reach any detailed agreement. But
they may agree on general princi-
Piles, leaving the details to be worked
out In further technical negotiations
United States Likes Road Plan.
American officials look with par
ticular favor upon the Aleman gov
ernment's projected road-building
program. Money spent upon build
Ing new roads that would make it
easier for tourists to drive from
California, for example, all the way
down to Mexico City could be
counted upon to result in more
tourist dollars being spent in Mexico
These dollars could be used to help
repay an American loan.
Export-Import Bank officials have
to examine any loan application
from the point Of view of whether
the project to be financed will in
crease the recipient country's dollar
revenue, since It's loans have to be
repaid in dollars.
Irrigation Projects.
1t Is not SO easy to see an i'm
mediate dollar return from Mexican
irrigation projects as from road
building. But President Aleman's
plans to open up 3,500,000 acres of
new irrigable land to cultivation in
the next six years are an important
part OF his program to build UP his
country's agriculture on modern
basis. 1t could be argued that such
projects to increase Mexicos own
production of agricultural commodi-
ties that 1t has to import, such as
grains, would help to conserve for
eign exchange and so indirectly help
provide the dollars for loan repay
ments. They also could help expand
Mexican exports to the United
States OF some vegetables during
the off-season In this country.
Discussion of credits for the Ale
man electrification program, aimed
at spreading the benefits of electric
lights and power to $4,000 900 more
Mexicans in three years, may raise
some delicate issues. Mexicos power
industry now is owned largely hv
FUn1ted States private interests. This
Government would want guarantees
to protect their investment before
giving financial backing to the new
program.
Bearing on American HoIdinrs.
President Aleman said in a speech
during President Truman's visit to
Mexico City that he wanted to en-
courage private United States cap-
ital to help in the industrial deyel-
opment of his country, under proper
conditions. If he spells out condi-
lions that would make investments
IN Mexico good business for FOREIGN
private capital, it is possible that
the already large American holdings
there may be increased over the
next few years to point where such
new private financing would exceed
any credits extended by this Gov
ernment.
The idea for President Aleman's
Visit here originated last fall as a
purely courtesy affair. > The first
civilian ever to serve as President of
Mexico, he was elected last July to
succeed Manuel Avila Camacho in
what many Mexicans described az
their country's first honest cleo
tion."
viii Address Congress.
Some officials here thought It
would be good policy to show United
States encouragement of the nom
military President-elect by inviting
him to visit Washington before his
Inauguration. The time was too
snort, however. and it was put off
until this year. Then the idea was
developed further into an exchange
of visits. with President Truman
paying the first call as compliment
to Mexico. Plans for the Mexican
chief executives trip here were
announced soon after Mr.. Truman
returned from his three-day visit to
Mexico City early in March.
During his stay here President
Aleman will address a Joint ses-
sion of Congress-at 1890 pm. MAY
l. He will be the honor guest at
two White House dinners and at
Pan American Union luncheon. in
addition to the usual round of re-
ceptions and sightseeing trips. He
will leave here at midnight Nav 1
for New York. His plans call for
visits to West Point, the Tennessee
Valley Authority area and Kansas
City before returning to Mexico