812.6363/7818
The Ambassador in Mexico (Messersmith) to the Secretary of
State
No. 6493
Mexico, January 8, 1943.
[Received January
13.]
Sir: I have the honor to refer to the
Department’s strictly confidential telegram No. 1650, of December 14, 11
a.m., 1942,74 stating that it has endorsed and approved the
recommendations of the mission of oil experts on repair and expansion
equipment and materials needed by the oil refineries in Mexico, and
instructing me to convey certain information to the Mexican
Government.
The Department’s telegram under reference states that there is being sent
to me a summarized portion of the oil mission’s report. The only such
summary which I have received is a copy of a memorandum dated December
375 prepared by
Mr. Thornburg for Secretary Hull, which reached me without any covering
instruction, but I assume from a telephone conversation with Mr. Duggan,
of the Department, that it is intended that the information contained in
this memorandum may be transmitted to the Mexican Government.
In accord with the telegram under reference, I therefore left with the
Minister of Foreign Relations, Dr. Padilla, today, a memorandum dated
January 8, of which a copy is transmitted herewith. The Minister
indicated that the Mexican Government would immediately give
[Page 453]
consideration to the
designation of appropriate representatives to proceed to Washington to
discuss with the Department of State the questions raised in the
memorandum.
Respectfully yours,
[Enclosure]
The American Embassy
to the Mexican Ministry for Foreign
Affairs
No. 928
Memorandum
Some months ago, in accord with an arrangement between the Government
of the United Mexican States and that of the United States of
America, a joint mission of experts of the two Governments made a
survey of the petroleum situation in Mexico with particular
reference to the needs of the petroleum industry for materials for
repairs and improvements. This mission has now made its report to
the Department of State and the Department has endorsed and approved
the recommendations of the mission on repair and expansion equipment
and materials which, in the opinion of the mission, are needed by
the oil refineries in Mexico. It has approved as well, in principle,
recommendations with respect to some new plant construction and
facilities to increase the facilities of existing plants. The
necessary priority allocations will be facilitated by the Government
of the United States towards this end.
The Department of State assumes that the Government of Mexico will
discuss with the Government of the United States the question of
obtaining competent American manufacturers, well-grounded in this
particular category of work, to design and erect the equipment, and
if necessary to train the operators thereof, in this manner assuring
efficiency in the use of the machinery and equipment for which
priorities will be sought.
While the American Embassy in Mexico City has not received full
information concerning the contents of the report and
recommendations of the petroleum mission, it is in a position to
convey the following information with respect to the report, to the
Government of the United Mexican States:
- 1.
- Producing operations currently require only maintenance
and operating materials, but an expanded program of
exploration drilling must be undertaken very soon to
strengthen the fast-deteriorating reserve position. This is
a very considerable undertaking and one which will require
careful study.
- 2.
- The refineries further urgently require both maintenance
and expansion materials in order to continue current
operations and to fulfill the requirements which may arise
out of the war emergency. The most important steps in the
refinery expansion program which have been recommended by
the mission are as follows:
[Page 454]
- a)
- Additions to the Mexico City refinery to raise the
crude distillation capacity from 18,000 barrels a
day to 28,000 barrels a day.
- b)
- Installation of heavy oil cracking units of a
certain capacity per day at the Mexico City
refinery.
- 3.
- The mission notes that the Mexico City refinery operates
on crude transmitted by pipeline and states that the
enlarged plant in Mexico City will satisfy the full
requirements of the central plateau, which is at present
partially served by products laboriously and inefficiently
carried by rail tank cars.
- 4.
- The expanded operations of the Mexico City refinery will
yield certain products and gases which furnish the raw feed
for the manufacture of high octane aviation gasoline. It is
therefore considered desirable to install additional
equipment for processing these raw materials into aviation
gasoline in the amount of approximately one thousand barrels
a day.
- 5.
- The mission notes that the primary distillation and
cracking equipment could and should be obtained from
shut-down refineries in the United States but it emphasizes
that the high octane manufacturing facilities would have to
be ordered from manufacturers with a delivery schedule
integrated into the over-all program of the world-wide high
octane gasoline plant construction.
- 6.
- The mission notes that the Mexican Government should
arrange for the construction of these new units by
established firms of United States engineers and
contractors, which should also be charged with the operation
of the expanded units until Mexican personnel can be trained
to take them over.
The Department of State has instructed the Embassy of the United
States in Mexico City, in transmitting the above-summarized portions
of the oil mission’s report, to suggest that the appropriate Mexican
authorities will wish to review these and in due course send
appropriate representatives to the United States for discussions
with the Department of State of their proposed arrangements for the
prosecution of the work and as regards manufacturers and
contractors.
While the discussions of the Mexican representatives will be with the
Department of State, it is noted that when it will be helpful to
have the aid of other United States Government agencies, the
Department of State will arrange therefor.
The Government of the United States expresses the desire that the
negotiations and conversations regarding the erection and management
of the proposed 100-octane gasoline plant under consideration be
carried on between Mexican and United States Government
representatives. The interested departments of the United States
Government in Washington, with this in mind, are already in
consultation and will in the very near future be prepared to consult
with the appropriate Mexican officials.
