Memorandum by the Under Secretary of State (Webb)


I discussed with the President the difficulties we are encountering in getting a governmental position on the Mexican oil loan, and indicated that the State Department staff felt we should await further developments, especially in view of the numerous ways in which we have already, or are now, assisted the Mexican Government. I left with the President the attached memorandum indicating these various items in which we are now engaged.1

The President said he would be glad to read the memorandum, that he still felt quite strongly that somehow, in some way, we must accomplish increased production of oil in Mexico and its export. He feels this is the only way he knows to solve Mexico’s dollar problem. I pointed out to him that there were at the present time several countries considering petroleum legislation, that we had made real progress in countries such as Peru, that we had just signed a treaty with Uruguay on most favorable terms, and that we must be very careful not to take any action in Mexico that would undermine this solid trend of progress.

I judge from this conversation that we should wait until the President has had an opportunity to read the list of things we are doing for Mexico, and discuss the matter with him again.

James E. Webb
  1. See supra.