United States-Mexico Agreement on Natural Gas Remarks Announcing the Framework for an Agreement.

I'm pleased to announce that we have just reached an agreement with the Government of Mexico which will permit the purchase of Mexican natural gas by United States buyers.

This is a significant step toward providing a new source of energy supplies for our country. Just as important, the agreement is a breakthrough in building the relationship of equity and mutual respect which we seek with the government and the people of our great southern neighbor.

Under the terms of this agreement, the United States purchasers will be able to buy 300 million cubic feet of natural gas each day. This gas will be in excess of Mexico's national demand and will meet our own needs which are not covered by our present supplies. The price is a fair one for both countries.

This natural gas agreement represents an important first step toward a deeper and broader relationship, and it will be of great benefit both to the people of Mexico and to the people of our own country.

I've expressed to President Lopez Portillo today my pleasure that we've reached an understanding with respect to natural gas sales and that we will have a chance to discuss more important issues—other important issues when we meet in Washington next week.

Thank you very much.