Evening star., 1949-09-18


can government for the developmt
try in that country we will not Of
past. It will be a complete reverse
not to supply money to foreign
governments to explore and drill
for oil, so long as there is private
capital available for such purposes.
We will also be wiping the slate
clean of all reservations we may
have had on the subject of the
appropriation by Mexico or any
other country of properties owned
or operated by United States citi-
zens.
State Department Blamed
Consideration of this project be-
gan in August of last year when a
group of Congressmen, headed by
Representative Charles A. Wolver-
ton, Republican, of New Jersey,
visited Mexico and issued q highly
favorable report on the prospects
and advisability Of helping to re-
vive and expand Mexican oil pro-
duction. Afterward Senator An
tonic Bermudez, director general
Of Pemax. the Mexican govern
ment oil monopoly, came to Wash
ington to ask for a loan of some
$470,000 900 from the Export I'm
port Bank.
From the very ffrst none of our
officials was disposed to consider
q request for such a large amount.
Negotiations. or conversations with
the bank, State Department and
other Government agencies lasted
for four months, and the figure
was eventually scaled down to
sos. 100000. The talks were finally
discontinued. it was said. at the
request of the Mexicans them
selves. No statement, giving the ac-
tual reasons for breaking of the
discussions was ever issued by off,
cials In Washington. Later it be-
came known that Senator Ber-
mudez had requested and the State
Department agreed that no state
ment Of particulars be given out.
However. the Mexican press i'm
mediately charged that the State
Department had asked for condi-
tions and the lifting of certain re-
strictlons which the Mexican gov
eminent could not grant. In fact,
not only the leftist and anti
United States press but even the
more conservative newspapers in
Mexico City declared that the big
United States oil companies, ap-
parently those whose properties
had been confiscated In 1898, had
Influenced the department against
the loan.
Similar. If not the same, charges
have since been voiced in the
United States. On August 81
Representative Wolverton threat
ened to ask for a congressional in
vestigation of what he called this
'inept and shameful handling of
Mexican oil policy by the State
Departments He further accused
the department of telling the
Mexicans that a loan depended
upon the settlement of an oil
claim by the Sabalo Transporta-
tion Co. In radio ad-
dress on the same day Senator
Dennis Chavez, Democrat, of New
Mexico blamed big United States
oil companies "and their friends
in the State Department" for the
failure Of the Mexicans to get q
loan.
Recently Senator Bermudez
was quoted as saying that Mexico
is no longer interested in the loan,
but President Truman has con-
tinually insisted that it is still in
contemplation. On September the
1st he announced at his news con-
ference that the negotiations
would be resumed. Up to now
neither the Embassy nor, any one
in Mexico City seems to have
heard Of any new overtures from
the Mexican government.
Aleman Skiyu Issue
Regardless of how helpful it
would be to a needy and friendly
neighbor and its favorable effect
on relations between our own and
the other countries below the Rio
Grande, If such a loan is made the
United States Government and
the American taxpayers will be
In the oil business In Mexico. What
is more, as most observers here
see it. this momentous decision
will be q public confirmation,
without the evidence being heard,
Of the charges that the depart
ment has been Influenced by cer-
tain big oil companies in its han
ding of the matter.
At least, in the eyes Of the
Mexicans. our angry arguments
over the question has justified the
campaign being waged against the
United States by the Mexican
Communists and other leftists, in
cluding the pro-Red Lombardo
Toledano and his newspaper, Ell
Popular. They are already crow
ing loudly over the fact that we
have reversed ourselves and, BY
implication, admitted that we were
interfering in Mexican internal
affairs.
1t is generally agreed among OBJ
servers in the Mexican capital
that the State Department has
not only been put in a corner by
oil this, but from the very first
allowed its own hands to be tied
by agreeing to the request of the
Mexicans not to make public the
points Of disagreement at the time
Of the suspension of the negotia-
tions. AS one of the most promi-