Business: Gas Deal

Call it "Pancho's revenge "

Following the angriest Mexican-American confrontation since General John J. ("Black Jack") Pershing chased Pancho Villa south of the border in 1916, the two countries last week initialed an agreement for the sale of 300 million cu. ft. of gas daily at an initial price of $3.63 per 1,000 cu. ft. The gas involved amounts to less than 1% of total U.S. consumption and is far under the 2.2 billion-cu.-ft.-per-day deal envisaged in July 1977 when Pemex, the Mexican state oil company, signed a letter of intent with six American pipeline companies.

Saying that the $2.60 price being discussed...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!