282. Editorial Note
The Venezuelan Government exercised restraint in its initial comments about proposed restrictions on crude oil imports in July and early August 1957, but reacted strongly when President Eisenhower announced on December 23 that these restrictions would be extended to District V on the West Coast. In explaining on July 26 the forthcoming recommendations of the President’s Special Committee to Ambassador González of Venezuela, Maurice Bernbaum, Director of the Office of Middle American Affairs, said he personally felt that the new formula was the best the Committee could work out at the present time. The Ambassador agreed with Bernbaum’s assertion that Venezuela would receive special treatment since no restrictions were being imposed on residual fuel oils which constituted a substantial part of Venezuela’s production. (Memorandum of conversation, July 26; Department of State, Central Files, 411.006/7–2657) In a conversation with Minister-Counselor Burrows in Caracas on August 7, Foreign Minister José Loreto Arismendi described the limitation as “imposed voluntary action” and reflected concern that it violated the spirit of the reciprocal trade agreement. (Telegram 101 from Caracas, August 7; Ibid., 411.006/8–757)
In October, Venezuelan officials expressed their irritation at the favored position given Canada in District V (telegram 303 from Caracas, October 23; Ibid., 411.006/10–2357) and asked why the restrictions were applied only to the Eastern States which imported Venezuelan petroleum. (Telegram 311 from Caracas, October 29; Ibid., 411.006/10–2957)
On December 28, Arismendi told Burrows in Caracas that the District V restrictions injured Venezuela and were protectionist measures favoring one certain sector of North American industry. He said, “We consider them harmful to good commercial relations between two countries and, should they become established policy, we would be obliged, logically, to revise our foreign economic [Page 753] policy.” (Telegram 417 from Caracas, December 28; Ibid., 411.006/12–2857) For documentation on this subject, see volume VII, pages 1119 ff. See also Department of State, Central File 411.316; Ibid., ARA Files: Lot 59 D 12, Economic—Oil 1957; and Ibid., Lot 59 D 376, Venezuela—1957.