Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

VE–53. Memorandum from the Under Secretary of State for Political Affairs (Merchant) to the Secretary of State and the Under Secretary of State (Dillon)¹

Washington, December 9, 1960

SUBJECT

• Meeting on Proposed Oil Proclamation

In accordance with instructions I attended a meeting at 8:30 this morning in the White House under Gerry Morgan’s² chairmanship on the proclamation proposed by Secretary Seaton of Interior relative to oil imports. Essentially the draft would modify the President’s proclamation 3279 of March 10, 1959 and introduce substantial administrative flexibility into the procedures established thereunder.³

The meeting was also-attended by Judge Walsh,⁴ General Persons,⁵ Secretary Seaton, Under Secretary Bennett,⁶ Secretary Anderson, Don Pasriberg⁷ and Phil Areeda.⁸ Mr. Bramble⁹ accompanied me.

I argued strongly for delay in a decision on this matter on the grounds that there had not been adequate inter-Departmental consideration of the matter and, further, that there, had been a substantial neglect of the element of national security on which the 1959 proclamation substantially rested. I emphasized the damaging effects that the proposed modification would have on many sensitive areas of the world but particularly on Venezuela. I expanded on the difficult internal situation in Venezuela and the key position which Betancourt occupies in relation to our policy towards Castro. During the latter part of the discussion I said that the State Department would accept the responsibility for securing a delay in the issuance of a new proclamation on this subject (since we would be blamed for it anyway) and that it was our strong desire that no change be made in the procedures for the first quarter of 1961.

Messrs. Seaton and Bennett argued vigorously on behalf of their proposition. I received support from Paarlberg, Areeda, and to considerable degree from Gerry Morgan. The upshot was that Secretary Seaton’s proposal was not approved by the group.

Fred Seaton thereupon said that he was impelled to appeal this decision to the President, and an appointment was made for this purpose for 8:30 a.m., December 21, with a Defense representative and Tom Mann added to the group of representatives assembled this morning.¹⁰

1. Source: Department of State, ARA/EST Files, Lot 62 D 8, “Oil Imports Program.” Confidential.
2. Deputy Assistant to the President.
3. The proposed amendment would require the Secretary of the Interior to make corrective adjustments in the mandatory oil import program in order to prevent over-estimates and under-estimates of total demand from having an unintended impact on levels of importation of oil into the United States.
4. Lawrence E. Walsh, Deputy Attorney General.
5. Wilton B. Persons, Assistant to the President.
6. Elmer F. Bennett, Under Secretary of the Department of the Interior.
7. Special Assistant to the President.
8. Assistant Special Council to the President.
9. Harlan P. Bramble, Deputy Director of the Office of International Resources of the Department of State.
10. The proposed amendment was approved and issued on December 24, 1960, as Proclamation 3386. For text of the proclamation, see 25 Foreign Relations 13945.