(b) The petroleum transportation and distribution services within
Mexico appear to be inadequately organized and suffer from lack
of proper equipment. Particularly in case of war emergency, failure
of these services might be serious. It is proposed that Colonel IHill,
now engaged in making a general survey of railroads in Mexico,
assist the petroleum mission on this problem, in so far as rail trans-
portation is concerned. The technical mission will examine, with
appropriate Mexican officials, other phases of the problem.
   (c) Present refining processes and equipment are incapable of
producing the quality of product which would be required by mecha-
nized military forces.
  These refineries should be examined critically to determine the
best methods of supplementing, replacing or modifying equipment,
and adjusting processes and operating procedure to secure optimum
results. Particular emphasis should be given to the utilization of
already fabricated equipment now available in the United States.
(For example there are several small modern refineries here which
have been operated very little or not at all, units of which might
be transferred very quickly to Mexico.)
   (d) There is a great wastage of rich gas at Poza Rica, which
not only wastes the valuable products contained therein but, even
more importantly, will lead to premature exhaustion of the Poza Rica
field itself.
  Determination should be made of a proper installation for recover-
ing natural gasoline from this gas, and of the best utilization of this
product. Prompt and competent consideration should be given also
to returning part off the gas to the structure for re-pressuring the field.
  (e) Attention should be given to the condition of the Tehuantepec
railroad and to the terminal facilities at Salina Cruz and east coast
ports. In an emergency these facilities might be needed for the trans-
portation and storage of war essential oil supplies. (Colonel Hill
would assist on this.)
  (f) Means should be determined for increasing the supply and use
of tetraethyl lead.
  (g) Appraisal of other problems and plans, such as the proposals
of certain American interests to carry out particular projects il
Mexico, requires a fuller knowledge than the Committee now possesses
concerning the accomplishment of essential work not covered by such
proposals (and raises certain other questions which will be mentioned
later). Approval by this Government, in so far as its approval is
required or requested, should be deferred until certain questions can
be answered.
  Growing out of the foregoing considerations by the Committee there
is the further recommendation that, if the proposal be agreeable to
Mexican authorities, a small group of experts drawn from agencies
of this Government be invited by Mexico to make a rapid field survey,
jointly with Petroleos Mexicanos, of the installations and circum-
stances involved in the problems now under consideration. It is
not suggested that certain urgently necessary action be deferred until
such a survey has been completed. It is pointed out, however, that
many questions which now stand in the way of prompt action would



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