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

• Document Type: CREST
• Collection: General CIA Records
• 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
• Content Type: REPORT

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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
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? 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
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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
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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
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