Foreign Relations of the United States, 1955–1957, Foreign Aid and Economic Defense Policy, Volume X

281. Telegram From the Department of State to the Embassy in Canada¹

Washington, December 23, 1957—6:31 p.m.

351. Deptel 347.² US Government has carefully considered Canadian proposals re exemption from voluntary import restrictions on crude oil for District V and has decided anticipated repercussions from third countries render inadvisable discrimination in favor Canada alone.

Embassy may inform Canadian officials confidentially Shell and Socony Vacuum have promised continue taking Canadian crude at current rate.

Recommendations special committee to be given press this afternoon under midnight embargo.

Following is text of backgrounder for oral use by Department’s news division in answering press queries tomorrow:

“The President announced on December 23, 1957, that he had approved the recommendations of the Special Committee to investigate crude oil imports as set forth in their Second Report and had requested the Secretary and the Director of the Office of Defense Mobilization to put such recommendations into effect as soon as possible.

“The recommendations of the Special Committee call for the extension into District V, the West Coast Area, of a voluntary program of restrictions on crude oil imports similar to that which has been applied to other parts of the United States since June 26, 1957. In recommending this measure, the Special Committee recognized that there are important foreign policy aspects to the problem of limiting petroleum imports, and that the oil reserves and production capacities of other free nations, as well as our own, are important to our national security. A number of countries inevitably depend in varying degree upon access to the American domestic market for their petroleum exports and it is in the interest of the national security of the United States that its allies and friends have healthy and expanding economies. They considered, however, that taking all factors into consideration, the national security required the maintenance of some reasonable balance between imports and domestic production in the District V Area at this time. Consequently, the recommendations were framed with the objective of limiting imports in order to maintain such a balance and yet to allow other nations to participate in the growth of American domestic demand to a degree consistent with United States national security.”

Dulles

1. Source: Department of State, Central Files, 411.006/12–2357. Official Use Only, Niact. Drafted by Nugent and approved by Elbrick.
2. In telegram 347 to Ottawa, December 20, Herter stated that the U.S. Government could not delay announcing the voluntary oil agreement’s applicability to the West Coast without difficulties and urged the Embassy to expedite the Canadian reply to the Department. (Ibid., 411.006/12–2057)