277. Telegram From the Department of State to the Embassy in Saudi Arabia1
174172. For the Ambassador. Subject: Proposed Presidential Letter to Fahd.
1. (Secret—entire text)
2. In Secretary Duncan’s recent meeting with Yamani latter suggested President urge Fahd directly to increase productive capacity beyond 12 MBPD in order to help Yamani withstand pressures from within SAG to abandon 12 MBPD goal.2 Would appreciate your immediate judgment on effectiveness of such a communication and suggestions on following proposed text:3
3. Begin text: “Your Royal Highness: I would like to share with you my reflections on the implications of the Venice Economic Summit meeting for our nations’ mutual security in the years ahead.
“The Heads of Government of the major industrial countries agreed on the importance for world economic stability of continuing our fight against inflation, even in the face of some increase in domestic unemployment. We also recognized that the severe financial problems faced by developing countries require the special attention of all governments capable of offering assistance.
“In addition, we agreed on an ambitious plan of action to break the link between economic growth and the consumption of oil over the next ten years. One of the central features of this plan is the intention of the seven countries to increase their production and use of substitutes for oil by the equivalent of 15–20 million barrels per day over this period. We will start toward this goal immediately.
“In setting this goal, we realized that we must work in close cooperation with Saudi Arabia and other responsible oil producers to effect [Page 871] an orderly transition away from the excessive dependence upon the world’s petroleum resource base, which must be preserved for future generations.
“I stated at Venice, and I reiterate to you now, my deep appreciation for the responsible policies of your government on petroleum matters. I can appreciate the very real difficulties that you may have experienced in advocating and pursuing policies of moderation and prudence.
“Recent international events give clear warning that our countries face growing challenges to our vital security concerns in the years ahead. I was reassured by the determination of all of the industrial powers represented at Venice to strengthen our military and economic capacity to define our common interests. I believe this posture is of great value to Saudi Arabia, just as your country’s readiness to meet emergency shortfalls in world oil supply is of great importance to the industrial nations’ security.
“One of the stark lessons of the recent past is that the world’s economic security depends heavily on the ready availability of a significant margin of oil production capacity to offset sudden supply disruptions. Saudi Arabia’s policy of raising sustainable production capacity to 12 million barrels per day is, thus, a major contribution to world order, and we look forward to its early realization. As the future unfolds, I believe that you may find that a further increase in Saudi Arabia’s capacity beyond 12 million barrels per day will be important to assuring a secure international environment.
“Looking back over the last several years, I am pleased to see how the dialogue between our two governments has developed on the wide range of economic, political, and security issues that affect the present and future well-being of our two countries and indeed of the world community generally. In the months ahead I look forward to further developing these close consultations and to benefitting from your counsel.” End text.
4. This text has not been cleared by White House nor seen by the President.4
- Source: National Archives, RG 59, Central Foreign Policy Files, P910096–0044. Secret; Niact; Immediate; Nodis; Cherokee. Drafted in the Department of Energy, cleared by Poats and Twinam, and approved by Cooper.↩
- Duncan met with Yamani on June 25, after the Venice Summit. The memorandum of their conversation is attached to a June 27 memorandum from Duncan to the President summarizing the discussion with Yamani. (Carter Library, National Security Affairs, Brzezinski Material, President’s Correspondence with Foreign Leaders File, Box 17, Saudi Arabia: Crown Prince and First Deputy Prime Minister Fahd ibn Abd al-Aziz Al Saud, 6–10/80)↩
- West replied: “We agree that a letter from President to Crown Prince would be constructive. Text set forth in reftel is excellent.” He added that in a June 25 meeting with Yamani, the latter expressed “his satisfaction with the Duncan meeting and seemed highly pleased with the understandings reached.” (Telegram 4057 from Jidda, July 2; National Archives, RG 59, Central Foreign Policy Files, P900077–1443)↩
- On a July 2 memorandum from Owen to the President, with a draft of the letter to Fahd attached, Carter wrote: “Either delete marked passage or don’t send letter.” The passage he instructed to be deleted was: “Saudi Arabia’s policy of raising sustainable capacity to 12 million barrels per day is thus a major contribution to world order. As the future unfolds, you may find that a further increase in capacity beyond 12 million barrels per day would serve Saudi Arabia’s interest in a secure international environment.” On the same memorandum, Owen wrote: “The letter was sent as a message with the indicated passage deleted. No hard copy will follow.” (Carter Library, National Security Affairs, Brzezinski Material, President’s Correspondence with Foreign Leaders File, Box 17, Saudi Arabia: Crown Prince and First Deputy Prime Minister Fahd ibn Abd al-Aziz Al Saud, 6–10/80)↩