The Acting Secretary of State to the President of the Export-Import Bank of Washington (Martin)


My Dear Mr. Martin: I have been informed that there is again some discussion in Mexico regarding the interest of Petroleos Mexicanos48 [Page 1002] in securing a loan from the Export-Import Bank to finance the construction of a gas pipe line from Poza Rica to the Federal District. The reports which have reached me indicate that Señor Efrain Buenrostro, head of Petroleos Mexicanos, has stated that his organization did not desire any foreign technical or other participation in the building of the line but was interested only in securing foreign capital for its financing.

It is possible that the renewed Mexican interest in this pipe line may lead to some approach being made to this Government either through the Embassy at Mexico City or direct to you. It is the opinion of the Department, and it has so informed the American Ambassador in Mexico City, that the proposed Poza Rica-Federal District gas pipe line is a project to serve as carrier from a proven oil and gas field to Mexico City and is so closely related to the petroleum industry as to constitute an integral part of “commercial development of Mexican petroleum resources”. U.S. Government loans for such “commercial development” were disapproved by the President, who on October 13, 1945, signed a State Department memorandum dated October 11, 1945.49 I understand that you are cognizant of the content of this statement.

This decision was, of course, reached as a part of this Government’s oil policy toward Mexico.

Sincerely yours,

W. L. Clayton

[A copy of the Acting Secretary’s letter of September 11 to Mr. Martin, printed supra, was transmitted to Ambassador Thurston in instruction 287, September 12, which concluded as follows: “In the event that you are approached by representatives of the Mexican Government with regard to such a loan, you are authorized to inform them, in your discretion, that sympathetic consideration cannot be given to a loan for this purpose.” (812.51/7–2646)]

  1. The Government oil monopoly.
  2. Foreign Relations, 1945, vol. ix, p. 1159. The Acting Secretary was assured by Mr. Martin, in a letter of September 17, 1946, that the Export-Import Bank would be guided by the Department memorandum in any discussions which it might have regarding loans to Mexico (812.51/9–1746).