235. Letter From Acting Secretary of State Hoover to the British Ambassador (Caccia)1
My Dear Mr. Ambassador: In your letter of November 102 you refer to the decisions taken in the meeting of the OEEC Oil Committee at its meeting last Friday. As you surmise, we have had reports from our representatives who attended the meeting. Their report coincides with yours on the three points you mentioned, namely, agreement to recommend to member governments that consumption of oil in Europe be reduced immediately by 10 percent; agreement that national industry committees would furnish stock and future supply data to the Oil Emergency (London) Advisory Committee; and the desire of consuming countries in Europe to see more active American participation in planning to cope with the prospective oil problem.
We believe the steps which the European countries have decided to take in the matter of reducing consumption and evaluating the present situation are both prudent and warranted in the circumstances. [Page 641] We have noted the view expressed in the OEEC Oil Committee regarding United States participation in the planning to cope with the situation.
When I spoke to you recently regarding the ability of oil companies individually to solve the problems they face in continuing supplies to Europe with the Suez Canal closed I did not of course mean to suggest that their efforts would be equally as efficient whether or not coordinated. I am certain, however, that the companies individually will be highly effective in devising measures to cope with the problems they face. The lesser efficiency of the uncoordinated effort seems to me preferable to a coordinated effort if as a result of the latter there should be additional adverse reactions in the oil producing states similar to those which have already been experienced and which would compound rather than ease the present difficulties.
To acknowledge this preference in considering how to cope with the oil supply situation in Europe is not to express disinterest in the problem. The United States Government is deeply concerned with the problem of oil supplies to Europe. We are following the situation very closely in order that in our appraisal of the problem we may weigh all factors pertinent to our decisions in this field.
Sincerely yours,