JAPAN'S OIL NEEDS

Wairarapa Times-Age, 19 April 1940, Page 6

JAPAN'S OIL NEEDS

BEING 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 California 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 been unable to sell, is 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 shop oil from a Pacific const port in Mexico. The 'oasis 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 Vei'n Cruz Petroleum Company which is reported Io bo controlled by Japan's Mitsui interests, has announced its engineers were preparing to drill 31) w wells. More than 500 tens of new equipment and substantial Japanese capital were said lo have been placed a! the company's disposal.