Office of the Historian

274. Memorandum From the President’s Special Assistant (Cutler) to the President1

Washington, August 8, 1957.

SUBJECT

  • Dillon Anderson’s Suggestion for a National Security Policy on Oil Resources and Supply
1.
On July 24, 1957, Dillon Anderson, having completed his services as consultant to the Cabinet Committee on Crude Oil Imports, addressed a letter to you,2 recommending that long-term U.S. policy objectives relative to the national resources and supply of petroleum “be spelled out and formalized perhaps in the National Security Council, with the Departments of Commerce and Interior participating.”
2.
With his permission, I have discussed his letter (a copy was furnished to me) with Mr. Gordon Gray, Director of ODM. Mr. Gray believes that the National Security Council would be a proper forum in which to develop such long-range policy relating to petroleum resources and supply. He concluded his memorandum to me thus:

“If the President were to consider favorably Mr. Anderson’s suggestion, I think that the scope of the review should not be limited to the level of oil imports compatible with a proper defense posture, but that an attempt should be made to work out a new long-range petroleum policy, which would take into consideration current military guidance as to the type and duration of any war which would be fought and would reassess the resources and transportability of crude oil and petroleum products, and well as requirements, in the light of estimated attack damage.”3

3.
While I realize that Mr. Anderson’s letter refers to long-range policy and not to specific programs related to petroleum resources and supply, such as were before the Council in 1953–1956, I am conscious that in 1956 the NSC divested itself of continued surveillance of oil policy, referring the matter to ODM for development through the Defense Mobilization Board of a mobilization program on this subject and for report to the Council as to the need for further policy guidance, if any.4
[Page 736]

I have, therefore, suggested to Mr. Gray, because of the highly technical nature of this subject, that I would propose to you that Mr. Gray be authorized, through an interdepartmental committee responsive to the Defense Mobilization Board, to work up the necessary factual background upon which to base a long-range national security policy on petroleum resources and supply, together with long-range policy recommendations based thereon, and submit such recommendations to the National Security Council for consideration and approval by you. Mr. Gray is in agreement with this procedure, subject to your approval.5

R.C.
  1. Source: Eisenhower Library, Project Clean Up. Confidential.↩
  2. Document 267.↩
  3. Memorandum from Gray to Cutler, August 1, not printed. (Eisenhower Library, Project Clean Up)↩
  4. In a memorandum of August 7 for Cutler, Gleason expressed his opposition to Dillon’s recommendation that a new national security policy on petroleum be developed through the National Security Council mechanism. (Ibid.)↩
  5. The source text bears a handwritten note by Cutler stating that it was approved by the President on August 9.↩