TRADE BY BARTER

Timaru Herald, Volume CXLV, Issue 21216, 10 December 1938, Page 17

TRADE BY BARTER

GERMAN ARRANGEMENTS WITH MEXICO OIL SUPPLIES SECURED United Press Association—By Electric Telegraph—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 1939, says the Mexico City correspondent of “The New York Times.” An additional part of the cash arrangement was completed, by which the German Navy will be supplied largely with Mexican Governmentproduced petrol and oil. This vast barter arrangement—the largest since the ex-proprlatlon—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 obtain is believed to total 8,000,000 dollars and an unspecified quantity ot blocked marks. It is understood that Germany will obtain petroleum considerably below the world market price, of approximately one dollar a barrel.