JAPAN’S OIL NEEDS.

Ashburton Guardian, Volume 60, Issue 201, 3 June 1940, Page 8

JAPAN’S OIL NEEDS.

FILLED FROM MEXICO. Expiration of the Japanese-United States commercial treaty already has resulted in an intensive drive by. Japan to expand her trade with Mexico, particularly in oil, said a recent message by the American Associated Press from Mexico City. Another consideration, the message said, is the exploitation of Mexico’s iron resources. Japan obtains most of the oil needed to run her industrial and war machines from Californian wells but is said to be preparing to obtain Mexican oil if the United States declares an embargo. • Mexico holds nearly 18,000,000 barrels of oil it has boon unable to sol!, io willing to negotiate a barter pact, and has been receptive to Japanese representatives now here. Foreign sources said the Japanese were studying means of assisting the Mexican Government in dredging Salina Cruz, Pacific coast port, and improving petroleum storage facilities there. It is now almost impossible to ship oil from a Pacific coast port in Mexico.

The basis of expanded trade between Japan and Mexico would be barter after an original investment of Japanese capital, informed persons said, Japanese delegations, well-informed quarters indicated, have obtained new oil well drilling permits. The director of the Vera Cruz Petroleum Company, which is reported to be controlled by Japan’s Mitsui interests, has announced its engineers were preparing to drill 30 new wells. More than 500 tons of no w equipment and substantial Japanese capital were said to have been placed at the company’s disposal.