CLARIFICATION OF THE SCOPE OF THE DECEMBER 30 1981 SANCTIONS INVOLVING OIL AND GAS EQUIPMENT EXPORTS TO THE SOVIET UNION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84T00109R000100080022-9
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 20
• Document Creation Date: December 21, 2016
• Document Release Date: August 18, 2008
• Sequence Number: 22
• Publication Date: February 2, 1982
• Content Type: REPORT

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February.2, 1982
Agenda
1. Clarification of the Scope of the December 30,
1981 Sanctions Involving Oil and Gas Equipment
Exports to the Soviet Union
State Dept. review completed
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The State Department opposes interpretation of the sanctions
to include subsidiaries and licensees (Tab C), at least at
this time, for the following reasons:
-- We are still making efforts to get our allies to agree
to similar measures. /
-- Extension of the controls would be extremely divisive'
in the alliance, where economic conditions and unemployment are
very bad.
-- Our legal authority in the case of licensees is murky
and in both cases will be. hotly contested by our allies.
-- Our allies consider our-use of the Polish crisis as
an excuse to attack the pipeline to be unfair.
-- The longshoremen have agreed to delay any action for the
time being. .
.The Treasury Department agrees that 'any controls that could be
effective should be imposed, even if not supported by our allies.
It is, however, concerned that legal actions in court rulings-in
allied countries could make the controls totally unenforceable.
Attachments
Tab A Commerce Paper
Tab B Commerce Paper on Legal. Background
Tab 'C -State Paper
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ISSUES R=LAT-N O r. XT .~Sl0i' OF 01 RIND aS CO ITROi,S
ntroduction'
he President announced sanctions December 29; 1981 agai rst
the USSR that broadened oil and gas. controls to include ?
refi.ni and transmission equipments . The. controls prevent- the
export or reexoort of. U. S. origin commodities and technology to
the USSR. Commerce Department specialists maintain that the
troadened controls require addi tional extension to block or .
delay the construction. of the West Siberian Pipeline. The.
rroposed extensions are..
I . Barring of all "U.S. Pens ons tT (controlled foreign
subsidiaries.of U.S. corporation) from exporting oil
and gas equipments to the USSR regardless of U.S.
content, and
IT . Barring the export to the USSR of foreign products
based or, U. S. technology wi thou 11 U. S. components .
B further extending the controls, the'U:S. drill have a
s. gncantl y higher probability of delaying or bl ockin - the
J - U-
. p. pel i ne; our allies are expect ed t o object .strongly, hoc.; ever .
NT w controls would also blunt cri ticism by the press and the
A.'L-CIO. - On the' other. -hand, these' extensions could cause
lc ng-term US business losses as fore-1 g customers turn iri- the
future to non-US suppliers of technology and components .
Decisions *need to be taken regarding the extension of the new
.cc ntrol s.
Two other issues 'have surfaced si n_ce December-30th...
ecember - 30th. . Several
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SUBJ7, r..i. o B-Ca moinici Cost to 3,1i .S. oi?
lpxalicat: on of fail aid Gad Coir-troi
7t~` of oil Ei s,as co.I L~ao'o1+~. will
?..-.oact o psi i u b x.3:4. .v~4~n ::. rn11A a G/- y
.!-Cars in sign d or
ao00 1,3 to t1-1 za C yic t union.
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-estcrn 1:u%op , zpan, nand 413ewaare pot-an ia1 purchasers o
tecbfoy ogy and . qui'omant nd wit-act ring cart r Could be
r,otivat.ed "Co a 3t non-U.S. Suppliers in -wa :3fxrori to avoid U.S.
e sport control3.
~.icens; ng and other cc parative trade m harry srns such as
:'anu actur ni 3oc c' to 1ati 7_^;3hi S pL ~ an -3 ~{1port ri ro
international trade. The C tur i;:e s3i~ris:.ona for gays that it3 businass related wit b manufacturing associates
and licensees amounts to about $500 7' i13.ion annually.
corporations may :im3 acquisition of .''i'...st Europ-e::m
firms 1es attr ce''3-'7