Pauley Files

No. 1318
The Representative on the Allied Commission on Reparations ( Pauley ) to the President 1

Memorandum to the President

Subject: Request for oil from Austria, Rumania, or Hungary

Discussion:

Discussion in Washington by Colonel Fogelson with General Pyron, of the Army–Navy Petroleum Board, and Mr. Davies, Deputy Petroleum Administrator for War, discloses that there will be a shortage of 207,000 barrels of crude oil per day in 1946 for prosecuting the Japanese War. A portion of this shortage can be offset with crude oil from the middle east and Venezuela by utilizing the refining capacity of southern France and England; but there still remains a critical shortage of 50,000 barrels per day (approximately 7,000 tons) needed for the occupation forces and for western European economy.

It is necessary that this 50,000 barrel daily shortage be supplied from the oil fields of Rumania, Hungary, or Austria. It can be refined either in Germany’s crude oil refineries or refineries in the Balkans.

If Russia agrees to furnish this oil, it will displace a part of the oil we are now shipping into Europe, and help to ease the critical oil shortage. In addition, it will help relieve the tanker situation by making more tankers available for the Pacific Theater.

Recommendation:

That Russia agree to furnish from Rumania, Hungary, or Austria, 50,000 barrels (approximately 7,000 tons) of crude oil or refined oil products per day for western Europe beginning as of September 1, 1945.

  1. Printed from an unsigned carbon copy.