Office of the Historian

VE–26. Telegram from the Acting Secretary of State to the Embassy in Venezuela1

Washington, April 3, 1959, 8:27 p.m.

645. Re recent discussions oil problem with Perez Alfonso, we have questioned Canadian Emb in detail regarding time factor. After consulting with Ottawa Emb has informed us:

1)
Canadian Prime Minister2 has already publicly announced that Govt will move quickly to establish national energy board.
2)
Govt will propose resolution which will give Govt authority to control imports and exports of oil and gas.
3)
This proposed resolution will be debated approximately April 20.
  • Debate will increase pressure on Govt to take positive action including action on Montreal pipeline.

    • Inform Perez Alfonso as promptly as possible of foregoing and state that Dept has no repeat no doubt that Canadian Govt rapidly approaching position where it must commit itself to a course of action which could be very prejudicial to Venezuela.3

    Dept giving this matter further attention. Separate telegram to Emb will be sent early next week.4

    “Department seeking authority inform Canadian Government in confidence within next few days that crude oil, unfinished oils and finished products imported by pipeline will be exempted from restrictions imposed by mandatory oil import program effective May 1. Purpose proposed exemption to forestall or minimize adoption by Canada of more nationalistic oil policies lessen Canadian criticism of our oil policies and reduce friction between Canada and U.S. over this issue which threatens impair our joint defense arrangements.” It added, “Exemption for oil imported by pipeline not expected lead to important increase imports and therefore it is not believed either domestic or other foreign suppliers will suffer any substantial injury.” (831.112/4–1759)

    1. Source: Department of State, Central Files, 831.112/4–359. Confidential. Drafted by Mann.↩
    2. John G. Diefenbaker.↩
    3. The Ambassador did so on April 7, 1959. (831.112/4–759)↩
    4. The Department’s telegram 688, April 17, 1959, stated, in part:↩