587. Telegram From the Ambassador in Venezuela (McIntosh) to the Department of State 1
658. For Rubottom. I am seriously concerned about repercussions in Venezuela which could be expected follow the imposition of any severe or enforced oil import restrictions by US. These might include steps by Venezuelan Government to curtail imports from US; intervention by Venezuelan Government into petroleum and iron ore business possibly to extent of controlling production and exports; entrance of government into further business activities to detriment present and future American business interests and finally general harassment by Venezuelan Government of already established American businesses. Furthermore, if imposition of US restrictions should result in serious decline Venezuelan Government revenues stability of present Venezuelan Government might be affected. Without question one certain result would be strained relations in all phases between Venezuela and US. Imposition any import restrictions will have unfortunate effects here but if Venezuela treated exactly same as Canada irritation would be lessened. However, if Canada should continue be exempted from restrictions or favored in any way while restrictions applied to Venezuela, great resentment would be caused here.
If and when decision should be made impose restrictions affecting Venezuela, I strongly urge that Venezuelan Government through this Embassy, as well as Venezuelan Embassy in Washington, be given as much advance notice as possible thereby softening blow and easing resentment. Desirable Venezuelan Government be kept as fully informed as possible regarding current developments.
I understand American Chamber Commerce of Venezuela giving consideration dispatch to US of delegation prominent Venezuelan American businessmen to present position from Venezuelan point view to press and business circles in US. Similar action was effective in 1950 when import restrictions were being considered by Congress. In opinion Department would visit at this time by such a delegation be productive good results? Also would visit to Washington by myself at this time be of any value?
Conclusion imposition restrictions reducing US imports Venezuelan oil significantly below current level would unquestionably seriously disrupt our present cordial relations with Venezuela and prejudice our long term political and economic objectives.
- Source: Department of State, Central Files, 411.316/6–657. Confidential; Priority.↩