ROUTING AND RECORD SHEET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05599A000100080008-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 13
• Document Creation Date: December 9, 2016
• Document Release Date: May 11, 2000
• Sequence Number: 8
• Publication Date: February 11, 1974
• Content Type: FORM

1 1 ASSFIr IN "NAL
F
f I SECRET
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
FROM: EXTENSION NO.
C/IDSB/SD/OL
e~-
X3696
DATE
1112 Ames Building
11, February 1974
TO; (Officer designation, room number, and
building)
DATE
OFFICER'S COMMENTS (Number each comment to show from whom
{=
RECEIVED FORyaARDED INITIALS to whom. Draw a line across column after each comment.)
-
i .
DC/SD/O.L
ILLEGIB
2.
C/SD/OL
DD/L
6.
7.
8.
9.
10.
12.
13.
14.
5.
 6j1Vkl I IAL
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ILLEGIB
3. In surveying our contacts in other government agencies to find out
what actions they were taking to reduce the impact of the gasoline shortage
we found a wide variety of responses. The following capsule sketches summarize
these findings.
a. De artment of the Army Inquiries were made at Military District
of Washingtion motor pool. LTC Taylor, the motor officer, maintains
an allotment of fuel for transient Army vehicles. It is not a significant
amount and while not a matter of policy, LTC Taylor expressed the opinion
that most commanders would be extremely reluctant to provide fuel to
vehicles not in their command.
b. The Air Force LTC Jones, our Pentagon focal point, advised that
Office o ?-Special Investigations agents carry commercial credit cards
showing the U.S. Government as the customer. As a backup each agent is
supplied a letter from a command element at Bolling AFB authorizing the
bearer to draw fuel at any military facility.
c. U.S. Navy Our inquiries with our Naval focal point on the
subject off- contingency plans to combat the effects of the gasoline
shortage produced nothing. The Navy has not surfaced any procedures
on the subject. The fact that the Navy is supplying gasoline to the
Washington GSA motor pool indicated that at least locally the Navy
has sufficient gasoline.
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d. General Services Administration GSA has, in addition to its
on motor pools, the ability to draw gasoline from the facilities
of Government Departments, specifically mentioned were the Departments
of Agriculture, Transportation and the Postal Service. Cross-
servicing agreements between GSA and these agencies provide for this
access. The Postal Service agreement may be suspended as a result
of a Postal Service decision to impose a five cent per gallon sur-
charge on any interagency transactions. GSA has in the past issued.
credit cards for use by Agency vehicles. Official U.S. Government
vehicles that carry a GSA credit. card will be provided gasoline, if
it is available, at any GSA pump.
e. FBI and Bureau of Narcotics and. Dangerous Drugs Since no
direct liaison contacts between t -Tie- Division and these agencies
exist, we asked the assistance of the Office of Security in soliciting
information. Mr. Steve Kuhn, Chief, Operations Personnel Security
and. Investigation Directorate, Office of Security made the determination
that it would be inappropriate to make such inquiries at this time.
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made, our chances of negotiating a mutually beneficial arrangement
are problematical at best. N1r. Rhodes, our GSA contact, would treat
everyone alike at the motor pool at 49th 'L". As of today we would
get an equal share first come, first served. Nevertheless, we do
recommend positive pursuit of the courses of action outlined below.
In view of the foregoing, the following recommendations are
presented for your consideration:
a. Three lines of communication should be opened to establish
the feasibility of obtaining gasoline from domestic distribution
points operated by GSA, the Postal Service, and the Armed Services
for officially registered vehicles.
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priority should be given to creating a viable working relationship
with the Postal Service. In a worst case situation it is safe to
assume that the Postal Service will receive a larger priority than
GSA in the allocation of fuels.
b. It is further recommended that we use this opportunity to
revalidate the CTVA and the vehicle registrations of government
25X1A owned vehicles operating outside the metropolitan area.
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 CPYRGHT
CPYF
11.11F wANlli~'Vi>1'tiii ?UST
Wednesday, March 13,1474
Sffidy. can,
business and industry.
Tice is contracting for a study
gasoline rationing, if it is
found necessary, and the of-
I has set Junc 3 as the tar ,get
{date for imposing nationwide
The Federal Encv:fy Office
By Tim O'Brien
tli.shiai^toxi Post Sitift Writer
GHT
in order to inform coupon dis-
4.:;L?..,;-" . nt' 1C,.. ,i .1 iic
J week before implementation,
resentatives of icveral re-
stressed that rationing can be
j Sources at the meeting said
800 randomly selected bust-
(standby, rationing proposal
which to make rationing deci-
sions.
posal would ration gasoline to
businesses on the basis of his-
toric gas consun-mption per
commercial vehicle, and that
"this might be inequitable-
very difficult" to do.
He said June 3 is the
"logical date when everything
could be put together" and
that the preparatory and plan-
ning work of tha agency cen-
ters on that date. "But events
could force an earlier date,"
he said.
Reportedly seven consulting
and research firms were rep-
resented on Mondaay at the
FEO's briefing on the gasoline
survey project. Charles Scott.,
the agency's technical director
of the project, said the survey
should. be low-key. A source
said Scott "didn't want to
arouse public anticipation or
speculation or comma " over
possible rationing.
According to sources at the
meeting, Scott said the Jane 3
date was chosen because gro-
line use historically peaks in
late, spring hnd early summer.
He reportedly said the details
of a rationing pro;dani wilt
have to be decided, upon by
April 15, since a 30-;lay wait-
ing and comment period is re-
quired before the rules can be-
come effective. In addition,
the FEO wants to give the
public two weeks' warning.
The sources said the re-
search contract calls fora pre-
liminary report by April 5,
showing the percentage of all
gasoline that is used in other
than private activities, broken
down by type of business and
industry.
By April 15, a report is to be
submitted on =gasoline uses by
small businesses. It would in-
clude recommendations /or.ra-
tioning gas to the non-private
sector.
Other retorts would include
an azralysis of the quality of
business records on gasoline
use and further breakdowns
on commercial gasoline cou-
suinption.
An energy office spokesman
said other studies into the ini-
plicat.ions of rationing are un-
der way, but he would not
,give any details.
Sources who attended
Monday meeting said Scott in-
dicated that the FE O is trying
to develop an equitable ration
i.ng plan for the rion-private
sector and that the agency
wants to go beyond the pies-
cnt formula based on the num-
ber of motor vehicles opera ted
by a business.
Other rationing techniques,
Scott reportedly said, might
be based on the size of a busi-
ness, the number of employees
or dollar sales.
He reportedly said the no,
tional survey of businesses
would provide data to help an-
swer this question.
Meanwhile yesterday, the
administration submitted to
Congress a new energy bill to
provide authority to impose
end-use rationing and various
mandatory conservation mea-
sures, if they become neces-
sary. Authority for the Presi-
dent to impose rationing was
included in the Energy I',iner-
gency Act that was vetoed
Feb. 28.
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 Approved For e~l10d~39LiPi99P
V
As Social
Levelers
By Betty Beale
CPYRGHT
Approved F
pumps.
Bystanders who watched celebrities come
and go during Alice Longworth's recent birth-
day party noticed that the engine of the presi-
dential car was kept running during the entire
time the Nixons were inside. Some of them
complained and blamed the President for need-
less waste of gas but., of course, he had nothing
to do with it. The Secret Service kept the motor
running; presumably to whisk him away in a
hurry if they had to.
The Secret Service, being a law enforcement
agency, has its own gas pumps but they are in
such demand.the official car? accompanied by
agents frequently have to line up to get gaso-
line. Eligible for their use are presidential and
vice presidential cars, those of the secretaries
of State and Treasury and, in the past three
weeks, the car of His "Czarship," Bill Simon,
who has been getting threatening letters. But
other cabinet cars wait their turn at public
So if you've been gna F:king your teeth while inch-
ing forward in a gas line, confident that federal big-
wigs have a better deal going -- relax. Most of them
are in the same boat ay you are and their spouses_
are doing as much as the average housewife in
America to conserve fuel. The wives of both the
Secretary of the Treasury George Shultz and the
"Czar" said: "I drive,my own car and I wait in line
like everyone else."
airborne for 10 minutes," observed Mrs. Howe.
As for our lawmakers, all senators and represen-
tatives have to queue up at service stations except
the leaders of Congress who have the best deal of
all. They not only have their own special supply but
they don't even have to pay for it!
MRS. SHULTZ SAID: "People get very annoyed
when they see cabinet members riding around in big
cars." "But her husband can see very little differ-
ence in the amount of gas consumed by his tan
Chevy and his former black limousine.
Voicing his sentimenus, no doubt, she said: "If
Congress would just lift The price controls on oil we
wouldn't have any shortage. Other countries are
getting it. But it's good for all of us. I walked to
church Sunday to save gas."
Mrs. Simon pays cash at gas stations so they
won't know who she is. "One station knows me," she
said, "and when I go there I hear nothing but com-
plaints."
To conserve gas she has become involved in a lot
of car pools and she has cut down her errands. "I
am home almost all the time. I wait until the chil-
dren get home from school and combine all our er-
rands. I market only once a week."
MRS. FRED DENT, wife of the Secretary of Com-
merce, said they have told her husband's driver:
"Please don't run the engine unless you are frozen."
When there's no parking problem they generally
drive themselves. Their official car, a little Valiant,
no longer comes to their house to bring her mail .or
briefings on their engagements. At Mrs. Dent's re-
quest all such material is read to her over the phone
now.
HEW Secretary Caspar Weinberger's driver
never runs the engine to listen to the radio or keep
warm. He carries his own battery-run portable TV
and watches it until his boss comes out. If it's cold
he gets himself invited into the kitchen of the house
the Weinbergers are visiting. "He has lots of
f{iends," said Mrs. Weinberger.
She makes a point of finding out who else is head-
ing for the same function she is and then forms a car
pool. "I walk most of the time for obvious. reasons,"
said Mrs. Weinberger, who is reducing.
Secretary of Agriculture and Mrs. Butz switched
to a Ford before anything was said about changing
from Cadillacs. "We weren't used to a Cadillac,
anyhow," said Mrs. Butz. "Earl had to get used to
someone helping him put on his overcoat and hold-
ing open the car door."
THE VICE PRESIDENT'S Secret Service men
"wear longjohns to keep warm," said Mrs. Ford's
secretary, Nancy Howe. When their cars are parked
outside the Ford's house in Alexandria the Secret
Service men use an extension cord to connect an
electric heater in the car with an outlet on the side
of the house.
Though it may not be the chic way of doing it,
Betty Ford saves gas by having the driver stop for
errands - picking up clothes at the dry cleaners,
for example - while driving her to or from a func-
tion.
The pilot of the small jet that carried the Fords to
and. from New York, earlier this week was so bent on
saving fuel he "didn't warrri up the plane before we
got on and it was like an iceberg until it had been
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CPYR6HT
The scene is the same in one area after another:
scores, even hundreds of cars, stretching as far as
the eve can see, winding around corners, creat-
ing traffic jams. Inside the cars are drivers trying
-not always with success-to control their tem-
pers as they spend an hour or more waiting their
turn at the gasoline pumps. Many are won-
dering:
Why are the lines so long, and getting longer?
Is there any hope that the gas shortage will end
How did this country-all of a sudden-get into this energy
mess?
To start at the beginning-it wasn't that sudden. The first
signs of an energy crisis appeared more than a year ago, when
demand started outrunning supply in this country. In the
winter of 1972-73 there were severe shortages of fuel oil in
New England and in the Midwest. Thanks only to unseason-
ably warm weather in the last half of that winter was the
country able to squeak through without great discomfort.
Fuel-oil shortages were followed by gasoline scarcity in
some places in the early summer of 1973. Shortages were in
the range of 3 to 5 per cent. But those early warning signals
were ignored by the public at large. The feeling seemed to
be: It can't happen here.
If there were warning
wasn't something done?
signals more than a year ago why
A few things were done. One move was to scrap controls
on imports of oil in the spring of 1973. This made more crude
oil and refinery products available to the United States. Oil
imports shot up from an average of 4.7 million barrels a day
in 1972 to 6.5 million barrels daily in 1973. Most of this big
increase came from Aral) lands of the Mideast which were
boosting production. But even with this surge of new supply,
demand for fuel in this country was rising so fast that there
was no surplus.
What brought on the feeling of crisis was the Aral) em-
bargo on all shipments of oil to the United States, which
came at the start of the Yom Kippur war with Israel last
October. When the embargo became fully effective around
the first of the year, imports dropped back by about 2 mil-
lion barrels a day.
Why is the shortage mainly in
be enough fuel oil for homes-
any time soon? How high will gas prices
Can't the Government do something about
foul-up? Why can't the President and Cong
get together on what needs to be done? If g
really so short, why not go to a coupon ratios
plan and be done with it?
To get answers-based on hard facts and
ures-to these and other questions, "U. S. N
& World Report" went to experts who know
fuel situation best.
fective than anticipated. More importantly, the winte
areas most dependent on oil for heating has been one of
mildest in recent memory. So there has been
enough heating oil to go around.
Why doesn't the Government
more gasoline output?
That's happening now. Refineries are being encourage
apprehensive about allowing this sooner in view of the c
i m p ab imbaM o
TURNABOUT IN
- OIL IMPORTS
AFTER A
QUICKENING RISE
For years, the U.S.
had been stepping
up imports of oil to
meet its needs, with
roughly one third of
the oil coming from
Arab countries.
Then, in October,
1973, the Arabs em-
bargoed shipments
to the U.S.
1969 1970 1971 1972 OCT. FEB.
1973 1974
just before Arab embargo
Source: Americrra Petroleum Institute; U.S. Bureau of Mines
"A p' YYi S af="Rd1 aC i O d/0&It2 ' :'eI AEI DP78-05599A000100U I ",4 . U. 5. NEWS 3 WORLD REPORT,
When it became obvious last autumn that there wasn't go-
ing to be enough crude oil to meet normal demand for all
peiroleurn products, the Government directed U. S. refineries
to emphasize production of fuel oil for home beating and
industry, Refineries can switch as much as .5 per cent of
capaeitv to either fuel oil or gasoline. Therefore. t;;lsoline pro-
llt3' tiort was deliberately curtailed.
Did the switch to fuel nil have. to be so extreme?
As it turned out, no. Two unexpected thing,: h:tppvned.
 --- __.. _-"1-t ----~ . ..................?, ~., - , y ..:~. _. -F' ~ ~ ? in e a ? ZO ler cent in Marc
theAtP~~~cfi~ F11s{00 f3I29 _YCIA~:2k~78- 1w;La1,H 1...,.,
nlnus ra or ot the Federal En- If the shortages are going to continr
t hau that of a home-owner whose family Federal officials, from President Nix
t
ld
wou
tale 11'vvv
-" +:$'L ~S&`+1C,-'.s - e u ????? '?? ,,,, says i
out to produce gasoline, will there be 20,000 bureaucrats to run a rationi
a ?` , t w getting gasoline without Ilnposing t
S refifineries ate .as 1: i
e
55 U vulucu U1lauuuulg.
That is what they do best-produce gaso- N
ot everyone agrees St Mil
.enaor line. But as long as the Arab embargo i 1r Mansfield (Dem.), of Montana, Sena
is in pIFact tha ,-nRno,?;oo ,,.,., ,.,. _ ! k? 1?..~.4lati+9P (:nncn fin+,nri .~! I z
" Ivta urrry -Leaner, urges rationing note
more than 80 per cent of capacity. This '4barre s per yl 1 means that where last ~,,, ,,,o,? sl
,n . a=' And the National Petroleum Council, a
ip
- -17 1 _ ? , -- F .Te; 5 11 inc ICCleral a ioeation progran
and summer will be around 20 per cent u,1-" - & ~Sn dS7U 9911 15}2 i J3 ~ r cannot both reduce consumption and sa
-unlcsl' the Qra },c ,?alnn+" , _
i
l
d
nc
u
e auuMonai use or o(IC1
t1 rr -s of F,,ssoltne every wee, --1u
Secretary of State Henry A. Kissinger e; t to x,,i a train of railroad tank even-day purchase lans requirement
p la (1
was assured by Arab leaders 1,eC
h
ore
e
k
.
s unless hall eulpty and staggerin
try at helping negotiate peace in the r i. thisu country s motor s a t
selling hours among retail outlets. I
l~~lirlnact +ha+ +l,a o.,,1-..,,.,.?. ...,._.1:, L_ i,a A e,e9 .,. +. +,~ .....-....,a nr.
d
40
million
a an
these Measures to ditibti
:' .;:3 nl 1 - re. improvesruoi
lifted if he were successful in mediating
d __:-_:___ ? _ __
an
d
Israel an
Syria -
. ; ,,, _ _ ;.-rt? to AiT,- Y:.....,,..._ ,...;a 1-- cessful, and public compliance does no
Sn,n?/`ec nlncr, :
C(~IYRIGHT (V 1974, U. S. NEWS & WORLD REPORT
INC
.
,
cent in
f
ti
k
aarvx o
ra
oning With 53 per cent opposed. I
Will a lifting of the embargo mean an end to the, gasoline month earlier, the poll found 34 per cent for and 56 per cen
lines in the U. S.?
Not immediately-for several reasons. According to Annon One Go
e
r h
h
de
h
a
e m
v
rno
as c
a ge
t
at there
ar
o th 20
reant
M. Card, vice president of Texaco, Inc., people may see million barrels of gasoline held in storage tanks of the of
solve improvement in s
l
i
hi
30
upp
y w
t
n
to 45 days bt itid ifhi
,u companes an ts were turned loose, everybody woul
will take 60 to 5)(1 onus fn,? f1 A,,,,. ,.t
Mideast to reach the U. S. in substantial amounts. lust how Latest figurest show that total gasoline stocks in the indus
soon the effects are felt
ill d
d
w
epen
on many factors inld td 21
,cu-ry amounte to.2 million barrels in late February. Bu
f ~.r;--r...?,.a ?
ing the location of fig tankers and the size
o
t
h
t
?r Y" a
e current rate or use. Before the Aral
It also will be necessary for the major Arab oil-producing embargo, as shown in the chart on this page, Americans wer
nations-particularly .Sand; Arabi
aria v.-._...:.. ,..
a
??r, n=,,,11+ U?V 1n,1111un varrels or gasoline each day.
production to pre-embargo levels. All told, Arab production In recent years experience has shown that at least 195
now is running about 3 milli
b
l
d
b
on
arre
s a
ay
elow the lelilli blfl
ve monarres o gasoine are needed just to keep supply lines
of last September, just before the embargo and production operating between. refineries and service stations. So there is
cutbacks 1 sere imposed ;n O
t b
Offs i
l
_r r, a n n
c
e
a
s
h
the - a
o
peratin area
ill
e
_..,
n t
anlg tv reports that some on companies and
rore, and pO increased he(1 the w
-
beyond embargo gasoline distributors are hoarding gasoline, waiting for higher
level, once the Arab leaders are satisfied with +,,,.,,,? f
or set
in
?? ??-- vus
ess U1 locating scarce fuel for customers
ivas in February? willing to pay the asking price put their bands energy officials had nv?Fr+ed n,tar r rY., ,;__.
are able to ands
sizabl
e
Amoco Oil Company, two of the nation's largest marketers, Industry officials insist, however, that it would be impos-
annolan.ced that their stations will receive less in Ma
h
abl
h
rc
s
e to
oard enoghli tllid'
.u gasoneo aevate toays shortage.
Amoco stations will get 75 per cent as much gas as they got Asks one; "Where are you going to hide even a week's sup-
ill March, 1972. whereas in February they were give',1 80 pt-r ply of gasoline when that would fill a train of tank cars
ccnt of their Februarv 1972 total
reahi hlfh U?"
,.cngaway across te. S. Shell dropped its -.allocation nation' I er ~,
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CPYRGHT LONGER LINES
Why do some sections of the country have plenty of gas
while in others there are long lines and empty tanks?
At a Senate committee hearing on February 27, John Saw-
bill, deputy director of the Federal Energy Office, listed
five reasons: (1) each State has a different mix of gasoline
suppliers, some of whom have more stocks than, others; (2)
each State has a different ratio of farmers, who get all of
the gasoline they need before fuel is divided among service
stations; (3) the type of driving varies from State to State,
and conservation measures have less effect in urban commut-
ing areas; (4) growth rates in gasoline sales have varied
from State to State since 1972-when the base rate for the
present allocation program was fixed; (5) city stations are
feeling the shortages more severely because people are filling
their tanks as close as possible to where they live or work,
and many no longer venture out along the highways and buy
gas in rural areas.
Has the odd-even-day purchase system worked?
It has, in some areas, particularly when it was first put
into operation. This was true in Oregon where it originated,
and seemed to be true in late February when New York
State switched to a mandatory odd-even system. Those who
favor such systems note: that they work when there is at least
a basic supply of gasoline but tend to fall apart if the
shortages become severe.
The price of a gallon of gasoline has skyrocketed in
many parts of the U.S. from 38 cents in mid-1973 to 50
cents-and some officials warn the cost might reach 70
cents by summer.
How much does the price boost add to the cost of
driving a car? Suppose you drive a car 10,000 miles a
year. Here's how annual costs rise, depending on how
many miles you get to a gallon of gas (mpg)-
Annual gasoline costs at--
38? a Gallon 50? a Gallon 700 a Gallon
10 mpg ................ $380..... ......... $500. ....... ..$700
12 mpg .............. .$317............. $417...........$583
14 mpg ...............$271..............$357 ..... _.... _$500
16 mpg ................ $238.............. $313............ $438
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2 mpg ................$190..............$250........ _..$350
Some experts suggest a major part of the problem is psy-
chological, and that this is difficult to deal with. The IDe.?
troit area, free of lines until the closing days of February, is
an example. Some stations ran out before the end of the
month and closed. Lines immediately formed at stations still
open and word quickly spread that "there's no gas in De-
troit-t.liey've siphoned it out for New Jersey and New York"
-a report for which there was apparently no foundation.
Gasoline prices went up again March 1. Why?
Federal energy officials give three basic reasons: First,
federal price regulations permit companies to raise the whole-
sale price of gasoline once each month to "pass through" any
added costs they are forced to pay for crude oil. Second,
about 90 per cent of the service stations-all those not direct-
ly owned by major oil. refiners-were authorized by the
Energy Office to increase prices 2 cents a gallon, effective
at the start of this month, to compensate for their lower
volume of business. Third, to hasten the refinery switchover
to gasoline production, the Government granted refiners a
penny-a-gallon price increase.
There are some who claim that as soon as prices rise high
enough gasoline will be plentiful everywhere, and lines will
disappear. Is this possible?
That's what happened in Europe after price increases of
around 40 per cent. There is no consensus on how high the
price would have to go in this country before demand would
be trimmed to the level of available supplies. There are sug-
gestions that the market would "clear" if prices rose to an
average of 60 to 70 cents a gallon. However, a private staff
study within the Federal Energy Office suggested that prices
would have to go above $1 to balance demand if supplies
are not increased.
Have higher prices caused less driving by Americans?
There is little evidence that buyers are resisting stations'
selling at higher prices. An Elmont, N. Y., dealer pumped
5,000 gallons of imported Belgian. gas in one day at 69.9
cents a gallon but reported lines about the same as other sta-
tions in the area that were selling at 53.9 cents.
What about charges that the oil companies have taken
advantage of the crisis to reap record profits?
Statistics compiled by the Senate Finance Committee show
that profits of 22 of the largest U. S. oil companies rose by
50 per cent in 1973-from 6 billion dollars to 9.1 billion.
Some industry experts say that another increase of as much as
50 per cent is possible in 1974, but add that much depends
on what happens to efforts in Congress to impose price roll-
backs and taxes on excess or windfall profits. Also unknown
is what action will be taken by the Arab nations and other
oil-rich countries to increase taxes on firms operating abroad,
or to nationalize their properties.
What do oil-industry officials say about those high profits?
They maintain the big increase in 1973 was from a low
base of profits in 1972. They also say that profits must con-
tinue to increase to provide capital for more exploration and
for research and development of new energy sources.
Why can't Congress and the President get together on
what legislation is needed to help solve energy problems?
In November, Mr. Nixon asked Congress for broad powers
in an emergency energy act, including the power to invoke
rationing if he decided it was necessary. The Senate and
the House of Representatives both added other measures. A
bill sent to the President on February 27 included a price
rollback to the controlled price of $5.25 a barrel for all ci-
mestic oil not now covered by controls. This is oil from new
wells and "stripper" wells, that produce 10 barrels a day or
r l~ n ?'A0Q- go ur higher than
c, Mr. Nixon
~j.~ n an n p a o80 o UAe easur
said the rollback would cut production, lengthen gas lines nie
force rationing "and that we're not t nine to have." [END]
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