DEPARTMENT OF STATE Memorandum of Conversation
Date: April 20, 1949
Subject: Appointment of the Mexican Ambassador, Accompanied by Señor Antonio J. Bermudez, with the Secretary
Participants: The Secretary Señor Don Rafael de la Colina, Ambassador of Mexico Senator Antonio J. Bermudez, Director General of Petrolees Mexicanos, Señor Justo Sierra, First Secretary of the Mexican Embassy Mr. Reveley, Chief, Division of Mexican Affairs
The Mexican Ambassador, at his request, called on the Secretary this afternoon, accompanied by Senator Bermudez and Señor Sierra.
Señor de la Colina said that he wished to congratulate the Secretary upon the completion of the work connected with the Atlantic Pact. Senator Bermudez added congratulatory remarks and the Secretary expressed his thanks for these statements.
The Mexican Ambassador said that he had hesitated in making this request for the Secretary's valuable time by asking for the appointment, but that as he was aware of the Secretary's friendship for Mexico during his several terms of office in the Department, he desired that the Senator have the opportunity of meeting the Secretary and presenting in brief form an outline of the subject matter of his visit to Washington.
Senator Bermudez informed the Secretary that the matter of the development of the Mexican petroleum industry was of primary interest for his country. He referred to the fact that Mexico considered its economic well being and general development dependent, as in the United States, upon an adequate supply of power and that the source of this power in Mexico is the petroleum reserves of the country. He said that it is vitally necessary that Mexico increase its petroleum production and related facilities and added that he desired respectfully to request that the decision of this Government with regard to financial assistance be expedited as much as is materially possible.
The Secretary told the Senator and the Mexican Ambassador that he had discussed the Mexican request with Assistant Secretary Thorp and with the President and that the matter is now under study by the appropriate officers in the Department. He said that there are of course many considerations which must be taken into account before a decision can be reached, but that the proposal is being viewed sympathetically. He expressed the opinion that it would not be possible to formulate any decision for at least six to eight weeks.
Senator Bermudez said that he had not discussed the matter with Mr. McCloy of the World Bank or Mr. Gaston of the Export-Import Bank, as he did not deem it proper to do so until the State Department had given him the "green light." He asked if he could be informed as to when he might mention his proposal to the Bank officials. The Secretary asked Mr. Reveley if the Export-Import Bank had indicated that it is agreeable to discussing details of the application with Mr. Bermudez. Mr. Reveley said that the Department received an informal indication to the effect that this step should be postponed until the decision of the Department had been reached. The Secretary told Senator Bermudez that he would inquire as to the Bank's present position with regard to informal discussions with the Senator. The Secretary emphasized the point that the directors of the Export-Import Bank were independent officials and that the only representative of the board representing a Government Department is Assistant Secretary Thorp. He said that while the Bank in these cases desires to have the opinion of the Department of State, the board acts independently; whereas, prior to legislation of a year or two ago the Bank directors were officers of several Government Departments.
The Mexican Ambassador said that the question of assistance to Mexico in the development of its petroleum industry is of such vital importance that he hoped that a decision would be forthcoming as soon as possible. The Secretary repeated his previous statement that the matter is being studied with understanding and sympathy.
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