<--PREV Doc #1143  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #1145 Document #1144; April 28, 1959 To Rómulo Betancourt Series: EM, AWF, International Series: Venezuela The Papers of Dwight David Eisenhower, Volume XX - The Presidency: Keeping the Peace Part VII: Berlin and the Chance for a Summit; March 1959 to August 1959 Chapter 16: A "staunch bulwark" resigns   Dear Mr. President: Because of the special importance of petroleum reserves to hemisphere security, officials of our two governments have, as you know, been discussing ways to assure, without prejudice to other oil-producing nations and without disruption of established trade patterns, the continued health and vigor of all hemisphere oil industries.1 I sincerely believe that the measures adopted by the United States on March tenth serve this objective and also tend to encourage stability in the United States market. I hope you will agree that such stability is in Venezuela’s interests.2 By this personal note, I want to tell you in advance that these import regulations will shortly be amended in the manner already discussed with your distinguished Ambassador.3 This amendment will improve the operation of the program and serve the interests of the Western Hemisphere. While the relatively small amount of Canadian oil sold in the north central and northwestern part of the United States does not compete with Venezuelan oil, this amendment will, we hope, reduce the serious risk of a permanent loss to Venezuela of its Montreal market. At the same time, I hope you will agree that our governments should continue their discussions looking toward broader hemisphere arrangements. The United States has been Venezuela’s largest market and I am confident that it will continue to be so on an expanding scale.4 Your distinguished Ambassador has stressed the special significance to Venezuela of the level of imports of residual fuel oil for burning. I have asked the Administrator of the program to keep this aspect particularly in mind, and I assure you that it will receive careful attention.5 In conclusion, Mr. President, permit me to extend to you again my warmest personal greetings and my best wishes for the happiness and prosperity of the Venezuelan people. Sincerely 1 This text was sent for delivery by telegram to the American embassy in Caracas, Venezuela, with instructions that it was not to be made public without authorization. 2 On March 10 Eisenhower had announced that a mandatory oil import quota program would replace the voluntary one then in effect (see no. 1098). He had also stated that informal conversations were being held with Canada and Venezuela regarding a coordinated approach to oil in recognition of their "joint interest in hemispheric defense" (Public Papers of the Presidents: Eisenhower, 1959, pp. 240 - 41, 296">).).3 Marcos Falcón Briceño. 4 On April 30 Eisenhower would announce modifications to the quota program in ways that benefitted Canada exclusively. Oil imported into the United States through "overland transportation" was now to be exempted from the quotas. Venezuela had protested against these modifications but to no avail. Canada had threatened to restrict its own oil imports and to build a pipeline from the Alberta fields to Montreal, the nation’s largest refining center, if the curbs against Canadian imports were not lifted. Responding to pressure from the international companies that controlled Montreal’s refineries, the Administration had acquiesced in the adoption of the overland rule (New York Times, May 1, 1959; for background see State, Foreign Relations, 1958 - 1960, vol. V, American Republics, p. 918, and Microfiche Supplement, ETA-4, VE-21 - 22, 25 - 26, 28, 34; Edward H. Shaffer, The Oil Import Program of the United States [London, 1968], pp. 109 - 38; Nash, United States Oil Policy, 1890 - 1964, pp. 205 - 8; Shaffer, Canada’s Oil and the American Empire, pp. 146 - 60). Eisenhower had approved the proposal to liberalize restrictions on Canadian imports at a meeting on April 27. Eisenhower had also requested that an earlier draft of this text be rewritten because it seemed to "promise more to the Venezuelans than might be forthcoming." The President had addressed potential modifications then under discussion with Venezuelan officials, but no decisions would be immediately forthcoming (Memorandum for Mrs. Whitman, Apr. 27, 1959, AWF/D). 5 In December 1959 Eisenhower would authorize the Department of Interior to raise the quotas, an action that would favor Venezuela. This modification had been proposed by the Department of State over the objections of the Department of Interior (Proclamation 3328, First Federal Register, vol. 24 (no. 244), pp. 10133 - 34). The State Department would justify the move as a concession equaling that given Canada and one that might prevent Venezuela from shifting toward "nationalistic" oil policies that could adversely affect U.S. oil interests in Venezuela as well as consumers at home (State, Foreign Relations, 1958 - 1960, vol. V, American Republics, Microfiche Supplement, VE-35). Venezuelan residual oil--an industrial fuel used extensively to generate electric power--was in direct competition with the lagging U.S. coal industry, an issue its spokespersons would vigorously pursue (State, Foreign Relations, 1958 - 1960, vol. V, American Republics, p. 918; New York Times, Sept. 20, 1959; Vietor, Energy Policy in America Since 1945, pp. 130 - 33; Shaffer, Canada’s Oil and the American Empire, pp. 134 - 36). Bibliographic reference to this document: Eisenhower, Dwight D. To Rómulo Betancourt, 28 April 1959. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 1144. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/second-term/documents/1144.cfm <--PREV Doc #1143  |  Memorial Commission Home Page  |  Second Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #1145

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