Evening star., 1948-05-15
Mexico as a sosrce of Oil

Mexico as Sol nrce of Oil
To the Editor of The Star: ~
Much has appeared recently in the press
about the oil needs of the United States, our
own oil resources and our Interests in the oil
deposits of the Middle EastAnd in the develop
ment of the oil resources sof Latin American
countries.
The first inexorable fact We must face Is that
our oil needs are increasing more rapidly than
is our domestic oil production. This is true
of our normal peacetime economic develop
ment and even more so Of our possible war
time needs.
That is the overall consideration that must be
taken into account. Against that consideration
there are a number of other important items
Cd The natural oil resources of the con-
tinental United States, while considerable, are
being depleted more rapidly than new re-
serves are being developed.
(2) Our capacity for production of oil from
other natural resources, while progressing. does
not hold out an early prospect of adequate
experimentation of natural oil deposits.
go The Near East oil deposits are consider
able and should be available to us. There are
however, some sobering considerations on that
source of supply. They are far away from us
and involve heavy costs in construction and
transportation. Above all, their defensibility
in times of crisis and the availability of their
oil in times of war are not to be taken for
granted. Quite the reverse This, of course,
does not mean that their peacetime develop
ment should be ignored. It does mean that
We must make sober appraisal Of their avail
ability to us at time when they may most be
needed
a. Finally, there are the Latin American oil
deposits. In Venezuela they are being ade-
quately developed. The oil resources of Mexico
are not being adequately developed Yet in all
reason Mexican supplies should receive priority
in our thinking.
"An Enormous Reservoir"
Precise estimates as to the extent Of the
Mexican oil deposits are not possible. But
enough Is known to justify the belief Of the
most eminent geologists and oil experts that
the subsoil and off-shore deposits OF oil in
Mexico constitute an enormous reservoir. This
is truly the black gold of Mexico. Its maximum
utilization can make an enormous difference
in the economic progress of Mexico. 1t can
also make an enormous difference in our own
oil consumption needs-in peace and in war.
There is thus common meeting ground of
mutual interests of both the Republic of Mexico
and the United States Of America.
Unfortunately, past involvements misunder-
Standings long and troublesome history in
which there is no white or black-have had the
effect of confusing or side-tracking immediate
realities
It will go too far afield to review that history
My conviction is that there is much to be said
for both sides: and above all, that it is time to
let by-gones be by-gones and to make a new
start in a mutually advantageous collabora-
ton in regard to those oil deposits.
Toward such collaboration think only few
basic conclusions are necessary:
I'd The oil is in Mexico and full regard must
be had therefore for Mexican sovereignty and
for the Mexican constitutional provisions
whereby the subsoil treasures are the property
of the Mexican people and government.
CD Outside investors and entrepreneurs have
a right to just protection of their interests ano
to reasonable return out OF a fair regard for
the contribution to the development Of Mexican
oil by United States financing equipment and
industrial skills.
Cooperation Held Feasible.
1t is inconceivable that, with these two fun
damentals, methods cannot be worked out, con-
sistent with sound recovery practices, for the
fullest possible development Of the Mexican
oil deposits that will be mutually advantageous
to Mexico and to the United States entire
preneur.
vantages to be derived from such development
should overcome all present obstacles.
No one formula is indicated within the
limitations of the above two points. There
are several forms whereby there can be CO.
operation. All that is necessary to insure
such mutually satisfactory cooperation is a
recognition of sovereign rights of Mexico and
an awareness on our part of the Importance,
relative safety, and proximity of this oil pool
for our own economy and safety. "A clear di-
rective is in order from American public opin-
ion to the State Department to explore this
possibility most sympatheticaly and to give
every encouragement to proposals along that
direction.
Common sense plus natural determination
to let by-gones be by-gones will, I am sure,
lead to tremendous development of Mexican
oil resources with incalculable benefit to Mexi-
can economy and with equal values to our own
industrial situation and to our national Sc
curity.
New York City. GORDON DUKE.
Politicians as Peacemakers
To the Editor of The star: