Messersmith, G.S.
Date
2011-06-15
Journal Title
Journal ISSN
Volume Title
Publisher
University of Delaware Library, Museums and Press
Abstract
Description
Discusses background and developments in Mexican oil situation; after Mexican government expropriation of foreign oil interests in 1928 Mexico was unable to get foreign credits which she badly needed for public works; Mexican oil resources had never been fully developed and under Pemex (the National Oil company) the oil industry was badly managed and was unable to supply Mexico's needs; Mexican leaders, under President Avila Camacho, realized that to reestablish Mexican credit and improve relations with U.S. it would be necessary to settle claims of American oil companies and other individuals whose property had been expropriated; late in 1941 notes were exchanged between Mexican and U.S. Governments and a basis for settlement was agreed upon; through the Export-Import Bank Mexican Government was then able to get a loan for badly needed public works; question of a loan from U.S. for oil exploration and development kept arising, but it was opposed to U.S. policy to lend money for that purpose; Messersmith suggested to Avila Camacho that private American oil companies might be willing to finance and furnish expertise for exploration and development but they would expect some return for their efforts; if Mexican oil resources were fully developed, Mexico would have oil for export, which would boost her economy and eliminate need for loans; as soon as settlement of American claims were agreed upon, British started pressing their claims, but their claims were unrealistic and negotiations soon broke down; British Foreign Office then agreed that settlement on same basis as American claims would be acceptable.
Keywords
Messersmith, George S. (George Strausser), 1883-1960.