MEMORANDUM TO (Sanitized) FROM DCI

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01554R003300260021-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: February 23, 2005
• Sequence Number: 21
• Publication Date: May 15, 1979
• Content Type: MF

Approved For Relea 2005/03/16: CIA-RDP80B01554R0 3Q 300260021-9
Tape 47
Side A, 0- 1/8
15 May 1979
MEMORANDUM FOR:
I agreed to speak at Bill Read's retirement ceremony Change of
Command on the 29th of June in Norfolk at 1400. I suggested that
there was a danger I would be required to testify on SALT at that
time and if he could change the Change of Command until the morning
of the 30th, the probability of my attending would go up considerably.
He said he would look into that though there is a conflict with the
Second Fleet Change of Command that day.
Approved For Release 2005/03/16 : CIA-RDP80BO1554R003300260021-9
 ase 216y' OIDPrO5 W330026010114-
1c. 1-979 N. Y. TIMES NEWS -SERV=I CEO'
WASHINGTO4 R SENIOR %MERICAN OFFICIAL WHO SPENT LAST WEEKEND
tNFERR I NG I N LONDON WITH REPRESENTATIVES OF THE ORGANIZRTION OF
ETROOLEUH EXPORTING COUNTRIES SAYS- THAT OPEC WILL PROBABLY DECIDE cm
IEi4 PRICE INCREASES AND POSSIBLY SET PRODUCTION CUTBACKS WHEN IT
tEETS I N GENEVA OH MONDAY.
IRE OFF I CI AL3 HARRY E. BERGOLD T R. ASSI ETANT SECRETARY OF ENERGY$
sYS HE ALSO BELIEVES ES THAT rP~.#.? WILL URGE IMPORTING NATIONS TO MODIFY
HEIR REFINERIES TO HANDLE MORE HEAVY AND LESS LIGHT CRUDE OIL.
BUTS HE SAYS IT IS "EXTREMELY DIFr ICULT3" TO MAKE SPECIFIC
REDICTIONS. OTHER OFFICIALS HERE HAVE BEEN NOTICEABLY MUIET OH THE
ATTERx POSSIBLY BECAUSE THEY WERE WRONG I N PREDICTING WHAT WOULD
.APF'EN AT THE LAST OPEC MEETI WGit IN. DECEMBER.
HT THAT TIMES OPEC SURPRISED UNITED STATES OFFICIALS BY RAISING
PRICES 14.5 PERCENTS TO BE SPREAD OVER FOUR STAGES IN 1.97195 OR A
''.EARLY AVERAGE OF ABOUT 10 PERCENT. OFFICIALS HERE3 AFTER
CONVERSATIONS WITH ARAB LEAOERS4 HAD SAID PUBLICLY THEY EXPECTED. THE
INCREASE TO BE HELD TO ABOUT 5 PERCENT FOR THE YEAR.
WHEW OPEC MET IN DECEMSER3 HOHEV'ER3 THE OUTPUT OF CRUDE OIL IN IRAN
aAS DROPPING FASTS TAILING 5 MILLION BARRELS A DAY OUT OF THE WORLD
MARKET. THAT ALLOWED THE PRODUCERS TO TAKE ADVANTAGE OF SHORTAGES AND
TO RAISE PRICES MORE THAN EXPECTED.
THE COMING OPEC MEETING AND THE DECISIONS EXPECTED TO SE TAKEN THERE
HAVE EVIDE NTLY EVIDENTLY AFFECTED THE TIMING OF PRESIDENT CARTER'S PLANNED
SPEECH ON ENERGY AND THE ECONOMY. IT HAS TENTATIVELY BEEN SET FOR
TEXT THURSOFsY3 GIVING THE PRESIDENT AND HIS ADVISERS TIME TO MAKE A
FINAL DECISION OH AMERICAN POLICY AFTER THEY HAVE SEEN WHAT OPEC DOES.
L ERGOLt 3 WHOSE VIEWS WERE EXPRESSED WEDNESDAY BEFORE THE L E N A i E
COOrMM I T a EE OEN ENERGY ANEt NA T u RAL RESouRCES3 SAID 1 HAT REPRESENTATIVES
OF OPEC WITH WHOM HE HAD MET "SEEMED TO BE SAYING THAT THEY WILL
FOLLOW THE MARKET. 3 ? 11AT WOULD NOT WECESSAR1LY BE THE SPOT MARKETS
H _E .S 1} ?' T ?= # R E ,"s~..: HE C E a E ... ~ A R 3 i.. t t A , b ~ a~F,~ .T I C o i.. A 's E D D F aa, " R I
s A I h+. ~t Fb W ~+ U ,.= L ~3 . B~ CE
STATEMENT MADE AT THE OPEC TIFF a I NG.
SOME INDUSTRY EXECUTIVES AND OFFICIALS HAVE SPECULATED PRIVATELY
THAT OPEC WILL BEGIN CHARGING IN THE SECOND RURRTER OF THIS YEAR THE
PRICE IT HAD SET FOR-THE FOURTH Q?UARTERx HAT WOULD RAISE THE
OFFICIAL PRICE FROM ITS CUR ENT A=} ERAGE OF + 1 'i.13t A BARREL TO $14.55
APRIL 1.
Approved For Release 2005/03/16 : CIA-RDP80BO1554R003300260021-9