D-1.1 6-62 INTER-OFFICE CORRESPONDENCE
Date: February 7, 1973
To: Mexico Files
From: Weston Bourret
Sub: CONVERSATION WITH JIM HANNAN,
CONSULTING MINING ENGINEER, COLIMA, MEXICO
Ref: Mexican Report of 1972
A. M. Wilson
c.c. E. C. DeMoss
H. G. Peacock
R. O. Wheaton
On January 22, 1973, I had a call from Jim Hannan in response to previous discussions on Mexico. Following is the substance of the conversation:
1. The large Mexican mining companies like Penles, Asarco de Mexicana, Frisco, and Mexicana de Cobre are inundated with requests from American and Canadian companies for joint venture propositions. Foreign companies with generous exploration budgets are coming to realize that the key to entering Mexico is the right Mexican partner. Accordingly, American companies are seeking out established operators.
2. Asarco's deal with the Mexican government for La Caridad has hit a major snag in regard to management and technical coordination. For these reasons, financing is stalled. Jim Hannan is a close friend
of Eng. Garcia Locana, Assistant Manager for Asarco, and has promised to keep me informed. The President of Asarco Mexicana is Gorge Larea.
3. One of the major problems to working in Mexico is the serious shortage of competent geologists and mining engineers. In order to get a good man (if there are any), you must resort to piracy. Mexico's best-known consulting geologist, Georges Ordonez, has retired and is turning his practice over to his son Ezekial, age 34.
4. The Fluor Utah joint venture arrangement, known as Azteca, has been dissolved for lack of business.
5. Jim Hannan recommends closely watching the La Caridad situation before making any major move or commitment. One of the few active foreign organizations in Mexico is Placer Mexicana. Fortunately, Placer has
a staff of Spanish-speaking geologists, including a few Columbians, formerly attached to the Pato operation.
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6. Hannan spent several years running Daniel Ludwig's mining and exploration activities. Ludwig has pulled out of exploration and Hannan is presently spending most of his time for Martin Marietta and the Banks. Altogether Jim Hannan has had about twenty-five years in Mexico and is regarded as an ""old hand"" in the mining business. Personally, I regard him as most reliable and unusually well-informed. W.B. Weston Bourret WB:nam
D-l.l 6-62 File
Date: . 8 February 1973
To: E. C. DeMoss cc A. M. Wilson
From: Weston Bourret
Sub: MEXICO - ATTACHED MEMO
The attached memo on Mexico was prompted by rumors through Fluor Utah, Asarco and Georges Ordonez that investment climate in Mexico has taken a turn since my report of last year.
Last fall, the Mexican Secretary of Commerce, Jose Campillo Sainz, gave a talk before a U. S. conference on investment policy. According to Jim Hannan, there has in fact been a rift between factions in the Mexican government and the United States business community. Wes Weston Bourret WB/nam Attachment
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