315. Memorandum of Conversation0
PARTICIPANTS
- United States
- Under Secretary Douglas Dillon
- John N. Irwin II, Assistant Secretary of Defense for International Security Affairs
- W.T. M. Beale, Minister for Economic Affairs, Embassy London
- William C. Trueheart, First Secretary, Embassy London
- Charles A. Sullivan, Special Assistant to the Under Secretary
- United Kingdom
- Lord Home, Foreign Secretary
- Edward Heath, Lord Privy Seal
- Sir Evelyn Shuckburgh, Deputy Under-Secretary of State, Foreign Office
- Peter Ramsbotham, Foreign Office
SUBJECT
- Oil, the OPEC and Venezuela
Lord Home raised the subject of oil, the OPEC, and Venezuela. Mr. Dillon said that several U.S. oil companies had got the same idea at the same time, and it was apparent that thinking among the oil companies was much the same, except for the French oil companies. He said that in his opinion the situation is bad from the viewpoint of over-all security. He pointed out that the OPEC put control of prices in the hands of Middle East companies and Venezuela. He said that the basic concept of controlling prices had been accepted in agreements relating to coffee and tin, but that he did not like [less than 1 line of source text not declassified] exercising the control in the case of oil. He expressed the view that the trouble stems from the Soviets, and asked whether the British side had any ideas about what could be done substantively to slow things up. Lord Home, in response, inquired whether Mr. Dillon felt that the Soviets are likely to upset the situation. Mr. Dillon replied that he thought they could cause trouble, but nothing insuperable. Lord Home asked whether there was any influence that could be brought to bear on Venezuela. Mr. Dillon replied that he did not know what could be done since power rested with one man. He expressed the opinion that the oil companies had done as much as they can to influence the Venezuelan situation.