812.6363/6539: Telegram

The Ambassador in Mexico (Daniels) to the Secretary of State

65. Suárez advised Lockett56 tonight that the President has called representatives of Petroleum Syndicate for tomorrow morning to present to them a plan for full reorganization of petroleum industry. Plan calls for severe reduction in salaries of administrative officers but not of workers, discharge of employees in excess of number employed by former companies, severe economies in all operations, and greater discipline. Said President was already assured of cooperation of syndicate and that while the President would present only general outline of reorganization tomorrow petroleum administration had every detail ready for immediate application. Suárez said reorganization and economy necessary to accomplish plans for this year including the building of pipe lines, purchase of more tankers, reconstruction of refineries, and the increase of export petroleum to 200,000 barrels daily principally from Poza Rica.

  1. Thomas H. Lockett, Commercial Attaché.