Office of the Historian

159. Memorandum From Timothy Deal of the National Security Council Staff to the President’s Assistant for National Security Affairs (Brzezinski)1

Washington, August 30, 1978.

SUBJECT

  • Proposed Meeting on Short-Term Oil Price Strategy

State recommends (Tab A)2 that we convene a meeting in September to review our short-term oil price policy. The memo notes that OPEC appears to be moving quickly toward a decision to increase oil prices. State argues that if the US hopes to influence that decision, we must reach agreement soon on our tactical position on oil price issues. We cannot defer consideration of this question until completion of the PRC study on our long-term oil price strategy, which should go forward to meet other needs.

State proposes an ad hoc meeting among NSC, State, Treasury, and Energy during the week of September 11. You chaired a similar meeting in your office last September shortly before Mike Blumenthal left on his Middle East trip.3 It was successful producing important policy decisions and a diplomatic campaign for a price freeze throughout 1978.

The week of September 11 is inconvenient because of the Camp David Summit and a heavy NSC schedule during the latter part of the week. Under the circumstances, I have suggested to State that the meeting take place on September 18 or 19. State concurs. State will coordinate with DOE and Treasury in preparation of an agenda and briefing papers. Henry Owen and I will monitor that preparation.

Recommendation

That you agree to convene an ad hoc meeting among State, DOE, Treasury and NSC on September 18 or 19 to discuss our tactical position on oil price increases.4

  1. Source: Carter Library, National Security Affairs, Staff Material, Middle East File, Box 66, Subject File, Middle East Oil, 12/77–12/78. Confidential. Sent for action. Transmitted through Owen.↩
  2. An August 29 memorandum from Tarnoff to Brzezinski; attached but not printed.↩
  3. The meeting was held in October. See Document 132.↩
  4. Brzezinski checked the Approve option. Quandt initialed his concurrence with the recommendation. Dodson also concurred and wrote: “fine with me; you could, of course, if you thought the process and decision making necessary warrants it, elevate this meeting to an SCC. Tim tells me State will go along with that too.”↩