The Ambassador in Mexico ( Daniels ) to the Secretary of State
[Received September 7—12:02 a.m.]
272. We have learned very confidentially from the French Legation that the day after war was declared by France on Germany, Suarez sent for the French Commercial Attaché to make him a proposition to have either the French Government or French private interests make extensive purchases of Mexico [Mexican oil?]. At the same time he offered to work out a plan of industrial collaboration with the French. The French Commercial Attaché had for some time prior to the declaration of war urged his Government to consider the purchase of Mexican oil in exchange for French exports. He has never received any reply to these suggestions from the French Government and [Page 707] French Legation considers it unlikely that the French Government will at present favorably consider offers of oil from Mexico. They consider the suggestion of industrial collaboration made by Suarez to be impracticable.
We learn informally and confidentially from Petroleos Mexicanos that the German Legation and the Mexican Government have reached an understanding to continue shipments of oil to Germany via Italy and to receive German or Italian goods in return via Italy.