OPEC'S U.S. HOLDINGS: $34 BILLION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01315R000400120004-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 16, 2016
• Document Release Date: October 26, 2004
• Sequence Number: 4
• Publication Date: March 25, 1977
• Content Type: NSPR

Approved For Release 200 /OS',{13Gr 8-01315R00o4Q; 12OOO4 e, J J ~9 c ~~
25 MAR i ] c)T7 L es
C /~ 30 3 1 .4 S'ui v_C ,
r_1C A- de f` l t Vii?f ,~5 w~I te.n
The Central Intelligence Agency has
conducted a .secret survey of the flood
of '.'etrodollars into the United States.
Over the past three years, according to
the CIA survey, the oil-producing
countries have invested an astounding
\ d k billion in U.S. holdings..
Some CIA analysts fear this prodi
funds into this country.
ing to confidential Treasury De;nart-
nent documents, ,vas put into "corn-
rnercial banks as short-term deposits,"
thus creating "widespread fear that a
deposits would lead to a collapse of
acLn)n in any Luture nnuule .aasL _...,...,.?,..,...~
crisis. The nation's most inftuentiat fin- But around mid-1975, the OPEC
znciai leaders the analysts suggest _ countries began to concentrate more
,, mieht feel rs the a to sunoort the on lone-term holdings. Their financial
comnelled
For example, members of-the Organ America
ization of Petroleum Exporting Coon- Pac?lcro[-rcz air- e ave ofte
tae .nauon s largess banks, particularly th ederal energy.regulators and
Chase Manhattan, Morgan -Guaranty, oil coons they regulate. Now
Thus the Arab oil potentates have, ministrata'on of condoning
erful banks. Presumably, this will The shock
heighten their sympathy for the Arab vestigators fo
v=iewpoint. For once the. Arabs get a Power Subconh
hold on a banker's pocketbook, his investigation shove
Yet the petrodollars have been char lations of the stttlute)
reeled discreetly into the U.S. economy- administered b FEA.7
With the single exception of the shah agency failed o develop
of Iran,'the oil potentates have been conduct the necessary?ii
careful to avoid purchasing controll- for effectiv presentation o
in.g interests in American firms. ence to t e Justice Depart
plus deposit withdrawals and other - Ther 'is more to the story. Oti
ttrsactions, have reduced the value inves
the 'United States by $2 billion, accord- refiners. Without this capability to`
inn to the M. The CIA estimate is that conduct criminal investigations or au-
the oil-producing nations are pumping ltiits, the FEA may be letting the indus-
i
he Hoyr~e Energy and
and regulations
estigations
ent"for
ly is'unable to audit the major
ry rip off the public to the tune ef
indreds of millions of dollars.
ha 0V pleaded for criminal inv -st;~s:i-
tors to, crack clown on oil crirni, tie.
Audi rs have begged for instruc jogs
and there personnel. But the reca.rests
wit pr tin,g
The FPkA is charged ec
the publi front energy frau s. Here
are just a f w examples: / i
r* Thenot
involved pat
the petroleu
1-forth , jacking u
e transaction. Yet
n a dust in the FEA fo
other,
Mien leg
severe
probes
rspea
nal cads de
idrty ov r cer i
cane to , n abru t halt.
al course
11 '_ d im, rtant volvin
S of case ?,
dollars in n
s to e consumers.
vssary.
he tine the energy a,,
he deplorable situation if ever ,
l too late. The statute
Jon the crimes could r oil .
of the violations occurr d as
ngo as the 1973 Arab oil ernba
F ~tnote: New FEA Administ.r.
~t O'Leary told us he recognized
ii 4
ncy's failings and planned to cn--
ct them..
delaye
charge
By t
rests t
it may
Cations
Many
to
loos "daisy ch
er sales of
no real
paper;
lies
Approved For Release 2005/01/12 : CIA-RDP88-01315R000400120004-4
t #
go
tor
m ' ehasej r
petroleum
'ovement of
middlemen
ce with each
cases gathered
nths.
e its regional of fi-
mande~.t
rz cases, the
's office also
in
Bible over-
The delays