Mexican oil expropriation: Difference between revisions

In retaliation, the oil companies initiated a [[public relations]] campaign against Mexico, urging people to stop buying Mexican goods, and [[lobbying]] to embargo US technology to Mexico. Many foreign governments closed their markets to Mexican oil, hoping that PEMEX would drown in its own oil. However, the U.S. government of [[Franklin Delano Roosevelt]] had issued the [[Good Neighbor Policy]], aiming to recalibrate U.S.-Latin American relations; the U.S. government did not intervene to aid U.S. oil companies affected by the Mexican expropriation. Mexican finances suffered due to the boycott, the Mexican peso was devalued, and an immediate 20% increase in prices was suffered by the Mexican population. In a trip to NY to negotiate with oil companies, Mexican treasury minister, Suarez, serendipitously met an American intermediate, [[William Rhodes Davis]] from Davis Oil Company, who had a refinery in Europe, and asked for a collaboration. Davis mediated between Mexico and Germany to a barter agreement where Mexico would give crude oil to Davis, who then would provide refined oil products to Germany in exchange for machinery to Mexico.<ref>https://libcom.org/library/allied-multinationals-supply-nazi-germany-world-war-2</ref> By 1940, Mexico had an agreement with the American [[Sinclair Oil Corporation]] to sell crude oil to the U.S, and the full-scale war in Europe guaranteed that Mexican oil would have international customers.<ref>Mexico Between Hitler and Roosevelt : Mexican Foreign Relations in the Age of L Zaro C Rdenas, 1934-1940 by Friedrich E. Schuler; Chapter 5; University of New Mexico Press; 1999; ISBN 0826321607;</ref> PEMEX developed into one of the largest [[oil companies]] in the world and helped Mexico become the world's seventh largest oil exporter.<ref>http://www.indexmundi.com/g/r.aspx?c=mx&v=88</ref>