SUMMARY AND EXTRACTS,(Classified)(Classified)REPORTS ON FTC REPORT AND OIL SUIT

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79B00970A000100010128-1
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
4
Document Creation Date: 
December 12, 2016
Document Release Date: 
July 31, 1998
Sequence Number: 
128
Case Number: 
Content Type: 
REPORT
File: 
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PDF icon CIA-RDP79B00970A000100010128-1.pdf429.93 KB
Body: 
t Fjg Approved For Release 2001/08/08: A-RDP79600970A000100010128-1 Golomb the Middle E Lebanon, Syr the immediate 25X1A6a DOft 25X1A6a the Latin Anerican the greatest conee-Mor tiiediate in Turkey and Ygypt were wholly' negative and even Irar only notekrately concern? tare. "1. ITC Oil Cartel report put local o and forced consideration be given local inveetiga n , ..Beport embarrassed friends of US and delighted enemle "2. Fortunately, initial reactions short...lived bteause other vents of more immediate interest.tonetered public inLerest, and only indireet references were made to rill report during domestic electoral campaign, although nationalieation word:sod by oppositeon party. 41. Because of tine that has transpixed sinae oteeinal announce- sad absence of further official ennouncement !reel US concernine reperta ix terest has greatly eubsieed, and there is eood chance that lamas will he forgotten by Venezuelan publics provided it is not revived in US.tublic trial of compeaiee would eftectiva7 and dramatic- ally revive issue and would be followod avidly by loc4. press. COMM. nist and nationalist elements assurectly vould twist and distort facte of trial to detriment of US interecte and to advantage of forces **eking nationalisation petroleum red iron indaetriee unless Goverrreee:. resorted to strict censorship, which is contrary to deeire of present Venssuelan Government. Would foroe Venozaelan Oovermeant, in self defense, to carry out extensive local taeldry, to deteLment interest of US investments. Undoabtedly, ?alio trial would de great harm to interests US in Venesuele and el:lettere in Latin Aneriea because it wo 4. Provide Coenenists field day for effective propaganda against industry and in favor of netionalitation4 b. Undermine etability of present Venezuelan eemernment? which has consistently favored private capital aid which is bele* k against Communism and the eprcedieg nationalism now moving up frea south. o. Strenthen postion of political oppositioa, which showed unexpected strength in recent elections and which has clearly evi- denced unfriendly attitude toward US and determination to seek nationalization petroleum and iron industries. d. Weaken henispeteric solidarity by raising issue in Latin American family of nations ehiCh will evoke bitter and divergent views Approved For Release 2001/08/08 : CIA-larag00970A000100010128-1 Approved For Release 2001/08/08 : CIA-RDP79600970A000100010128-1 ? Indio d public opportunity to spread trial would receive d be unfavorat to d intensify anti-US p 'I ? pUbl givin paganda It is felt that American offiolals are placed on defeaeive g locally to chargen of FTC end that US compatiee placed in with Colombian officials. Vrf.th present conservative ieovern- is little danger of nationalization resultinc? but if :ov- ernizent should change or if po8ition should raise the issue, nente and trials nieht have ,rious er2ect regarding nsUonalization." Federal Trade Coxmd.ion oil etr 3 nods no local impact. Have seen no refererco to report in local press nor is it being disousred in local political ,:viroies. '2. Turkey has reeenty shown intention moving a007 for present from nationalization of petroleum as evidenced by redmOt Turk governewit statement eolieiting private oil companies and foreign -capital to enter Turkey for development of a Turkiah petroleum inUustry. Press in generally favorable to this and nakes 'contrast to chew in Iran follow- ing nationalization of petroleum theros" 4..2. Cartel report has thue tar gone unaotieA4 becaue oCcupied with internal political and economic dem pments, from military coup, and also vith perennial preblera of Britaie ael. Cartel report has eot been subject in hadioal press, tracted public trial...would not, in itself, greatly e gyptien government in direction of nationalization of oil and other industries. This is lone.range possibility, but Egypt's short-range requirenents militate ertinst it.... el. Inford Ireqmis nrs aware of fact that Fears' miss on's oil cartel report has be %Breed. Press ardryt however, has been neglibiblo rnite the report's obid.ous to anti government and anti-Vest pronaganda... 3. Publicity in connection with indictment of oil companies concerned probably -fould have foll Impel comment ptabilitir ted trial 'Its in Approved For Release 2001/08/08 : CIAZZOMB00970A000100010128-1 Approved For Release 2001/08/08 : CIA-RDP79600970A000100010128-1 fold Leied' poliP.toianauld tiort or play down ? as long .y aro satisfie4 with t41 profits; t elements =pie 'Ley to exploit auchpublicity as proof of their previouz ehareps silieh would possiWee be effectivt on ce basis0 lowever?-eith or withoet peess controls, the feasibility of eakiee it a poeular issue in the January elections is dubious. 4. Most serious possibility is that if the situation iere more fulky aired bylueovn Iraqui opposition leadern, such as Salih Jahr, the issue could caves embarrassment to British, US and Iraqi governmente," 'l. Trial of US oil oempanies on cartel charges would give zcb additional ammunition to nationelist ;Led eocialist eleeents in Lebanon for further exploitation of oil coevenies there and poeeibly would encourage neighboring prodecing coieltries to nationali4a. 2. Recent Lebanese government atteepts to renege-41kt? ta line and IPC agreements greatly strengthened by cartel reports. Finance einister George Hakim, a reneeotiateon proponeet, has cited reports publicly and in private. 3. Local press en?raiy s ort e tapline and 117, enegotiation and has easionally referred to eartel reports. All above encourages feeling." caused onle einor byrian reaction, eyriceI was surprioing that the US government is only new the riddle last ha z been long aware of. A protracted public trial would probably receive substantial publicity the first week or two, thereafter only spotty ?overage c highlights Nationalisation is not aa tee= in Syria but dommads free pittline companies with enfeeorable effect on current negotiations for revision of the Iraq petroleum coepaey (IFC) pipeline aereement. There weed also possibly be preseure to reeopen the tepline.aereement. Hewever, irreparable damage is not anticipated from aapacts covered in this paragraph. C One item could be dyeareite; If any allegatiaa made that Syrian petroleusaeompanye (oubsidiary 3f ITC) has discovered oil in Serie but concealed the fact becaase VG is not intereeted in immediate exploitations reaction would be serious and severe. Setelane are con- vinced they have oil and fail to uederstand failure of oxplotation. Even if allegation is false, it cold ee firmly believed and could be Approved For Release 2001/08/08 : C187M791300970A000100010128-1 Approved For Re!ease 2001/08/08 : CIA-RDP79600970A000100010128-1 exploited Tehrau 1 To date local imptc "2. In view mystery tc procedure, likely to be little s.r' It is probable that impact would follow ea decision bears upon Anzlo-lranian dispute. 3. However, indlotwnt and trial wOlald and when picked up by local press as follmws. s. Ar goverment press to justify further Iran's position in foreign relations vis a vie AIM; and b. By Leftist press to cow/lace Iranian public that United States policy is under influence international cartel and specifically under 1a2luence LI03. Press will describe trial au hone" elements." * e to nil. de St ?treated; by-day deve1oments. i3 ion but only as obably be exploitod if ve a. loiatiozi to just this efZect were in the o the Reports based chiefly on docwnte from Jersey n the Goveramnti A0C2eSt401141. T Approved For Release 2001/08/08 : CIA-RDP79600970A000100010128-1