VAST BARTER PACT

Dominion, Volume 32, Issue 66, 10 December 1938, Page 11

VAST BARTER PACT

Mexican Agreement With Germany

PETROL AND OIL FOR

NAVY

Cash Arrangement Also Completed

By Telegraph. —Press Assn. —Copyright. (Received December 9, 10.45 p.m.)

NEW YORK, December 9

The Mexican Government has signed an agreement by which 17.000.000 dollars’ worth of petroleum from the expropriated American and British properties will be bartered for German merchandise, machinery and other products in 19.39, says the Mexico City correspondent of the “New York limes.

A cash arrangement was completed by which the German navy will be supplied largely with Mexican Government-produced petrol and oil. This vast barter arrangement, the largest since the expropriation, is expected further to reduce British and American sales to Mexico, which already are much below their former level. . ~ It is not completely inconceivable, the correspondent adds, that Germany may now take first, place in Mexican trade. It is stressed in Mexico City that Mexican petrol and oil had previously been extensively used by the British Navy. The cash that Mexico will objain is believed to total 8,000,000 dollars and an unspecified quantity of blocked marks. It is understood that Germany will obtain petroleum considerably below the world market price of approximately a dollar a barrel.