Papers - Production - Foreign - Petroleum Development in Mexico during 1940

During the year 1940, production of crude oil in RiIexico totaled 43,914,000 bbl., or 2,776,000 less than in 1937, the year before expropriation. The 1940 output was I,2000,000 higher than in the previous year. In 1937, Poza Rica production accounted Declines in exports of Panuco crude, fuel oil and gasoline were recorded but these were more than offset by increased exports of 4,000,000 bbl. of Poza Rica crude, which was the approximate amount shipped to Sinclair during 1940 under the terms of the settlement. Over-all exports increased by 1,500,000 bbl. over the preceding year. The outstanding development regarding the destination of Mexican exports in 1940 was the increase of I0,000,000 bbl. in the exports to the United States. Exports to Germany ceased toward the end of '939 and to Italy in the second half of 1940. During the year 1940 the Sinclair interests and the Mexican Government settled their expropriation question. By the terms of the settlement Sinclair is to be compensated by cash payments and oil-purchase contracts. On Dec. I, 1940, Ada Camacho was inaugurated President of Mexico for a term of six years. Among his first acts following his election were: I. A proposal to change the Constitution to restore Supreme Court Judges' terms to life tenure. This has been ratified by both chambers of the Mexican congress and is now before the legislatures of the States of Mexico for ratification. The, taking away of the administration of the railroads from labor and restoration to the State.