(UNTITLED) RE: MEXICO CITY PROVIDING OIL TO GUATEMALA

Created: 10/2/1985

OCR scan of the original document, errors are possible

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A/nortg the alternatives, Mexico City probably offers the best chance of providing oil to Guatemala to carry the country through the January transition in administrations. The US could offer to support additional irf or World Bank funds for Mexico City sufficient to cover theillion cost of oil imports. In effect, ne would ask Mexico to foregoown payment required by the San Jose Accord while offering to replace that money with loans. As with Nicaragua, Mexico City would Pear the risk of eventual non-payment by Guatemala. By offering loan support, however, we would defuse Mexico's argument that financial constraints preclude malting oil available at this point.

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