260. Memorandum of a Telephone Conversation Between the Secretary of State and the Attorney General (Brownell), Washington, July 2, 1957, 2:22 p.m.1
B returned the call and the Sec said re oil business—he is worried about some aspects of it because he has the feeling this business about the national security is a good deal of window dressing. B agrees. What they are doing, said the Sec, is to try to put the price of oil up and put more of the Texas wells into production and accelerate new drilling which will only happen if the price goes up. They are beginning to run dry and it takes more drilling to get the same amount of oil as before and so the cost is higher. B said the Sec’s rep on the Comm does not faithfully reflect his views.2 The Sec said he has no rep—Hoover is a consultant. The Sec does not want to go to jail in his later years instead of retiring to Duck.3 The Sec does not know if there are aspects that give B concern. B said they are concerned and he made it clear if the govt broke down the formula for imports into individual companies we thought it would be a violation of anti-trust laws and subject to triple damage suits. The Sec mentioned quotas to the companies. B made it clear to the contrary. Humphrey and Adams understood and Gray got it in writing. B said if it affects quotas by companies it is definitely illegal. If they want to continue the present thing that imports should not rise above the 1954 levels we think—the Sec interrupted and gave a formula—something about the area east of the Rockies should not exceed 11% of the total. B said if they get together it is a violation of the law. B mentioned its involving a statement by the Pres—these are the factors and we think it is in the best interests of the country. But they can’t get into sanctions and they can’t get together. The Sec said only in theory each makes a contribution to the whole but can’t sit down. B agreed and said it was the situation for the last two years. B said if it would help to have them attend the meeting they would be glad to do it. B asked they not be on the Comm but rather act as counsel and be called in as needed. The Sec will let him know.4
- Source: Eisenhower Library, Dulles Papers, General Telephone Conversations. Transcribed by Bernau.↩
- Reference is to the Special Committee To Investigate Crude Oil Imports appointed by the President on June 26; see Document 258.↩
- Reference is to Dulles’ summer home on Duck Island on Lake Ontario.↩
- On July 3, Dulles called Brownell to say he had been invited to the Monday afternoon meeting on oil. Brownell replied that if he could not be at the meeting on time, he would send Hansen and join the meeting later. (Memorandum of telephone conversation, July 3, 10:45 a.m.; Eisenhower Library, Dulles Papers, General Telephone Conversations)↩