276. Minutes of the Cabinet Meeting0
[Here follow a list of participants and discussion of unrelated subjects.]
Oil Imports—Sec. Weeks recalled the steps taken last July,1 then stated that the situation had become more complicated because of noncompliance principally by a single company, decreased demand, and the advent of new importers. He pointed out that production in Texas had recently been cut to a nine-day per month basis.
[Page 560]Sec. Weeks enumerated the various possibilities: (1) voluntary controls; (2) mandatory controls; (3) tariff; (4) no Government action. He believed that foreign policy considerations ruled out the practicality of action through tariffs.
Sec. Weeks stated that the Subcommittee had studied hardest how to make voluntary controls more effective, which might be done by invoking the Buy American Act against importers who refused to comply with the voluntary control program. He stated that the largest Government buyers—Post Office, Defense, and GSA—are studying further the actions they might take. The President asked if Government contractors might also operate under a policy like the Government’s Buy American policy and thus extend the range. The Attorney General stated this would require study but he felt it might result in a lengthy law suit before final decision. The President emphasized the need for having some sanction over any ruthless company.
Sec. Weeks made clear that the Committee has yet to make a determination between mandatory controls and voluntary controls. The President noted how certain producers seemed to have anticipated his decision, and he asked Sec. Anderson or Sec. Weeks to set them straight as to the status of the matter.
Sec. Weeks stated that an increase in demand was not in sight, then went on to express his belief that any action taken by the Administration should be by Executive Order rather than legislation.
Gen. Persons called attention to the potential impact of the oil situation on the Trade Agreements legislation.
Mr. Rogers pointed out that the nearly complete compliance thus far in the voluntary agreements of last July would seem to preclude any justification for changing now to mandatory controls. The President again emphasized that one organization should not be allowed to get away with breaking the agreements when all others complied. He added that the four-day schedule for some pipelines seemed to substantiate the bad position of the oil industry.
Mr. Quarles called attention to the increasing interest among Members of Congress for getting the Defense Department to decrease its offshore program, a change that would be contrary to statements made at the NATO meeting.2 The President could see no merit in such a change since a very great defense factor was involved through the wartime supply potential, particularly in spare parts, established overseas through offshore procurement.
[Here follows discussion of unrelated subjects.]
- Source: Eisenhower Library, Whitman File, Cabinet Series. Confidential. Drafted by L. Arthur Minnich, Jr.↩
- See footnote 2, Document 274.↩
- The NATO Heads of Government Meeting, held at Paris, December 16–19, 1957.↩