90. Telegram From the Embassy in Iraq to the Department of State0
403. Conference five oil producing states ended September 14 after agreeing establish permanent body called Organization Petroleum Exporting Countries. Baghdad conferees are founding members, but OPEC open to “any country which exports large quantity crude oil”. Conference also set up Secretariat for OPEC and directed it prepare agenda, rules, and documentation for second meeting scheduled for January in Caracas. OPEC expecting carry out regular consultations with members to coordinate and unify their policies and determine line be followed in future “emergencies.”
According press producing states decided they must voice their objections to attitudes shown by oil companies in reducing prices recently and call upon companies maintain fixed stable prices. Conference also decided producing states should take all possible steps restore crude prices to level prevailing before recent cuts and agreed participants should study measures be taken ensure stable prices in future. Official announcement decisions conference will be released simultaneously September 24 in all capitals participants.1
Press commented conference decisions stemmed from realization by producers that their development programs dependent on oil revenues and that “any fluctuations in oil prices will halt economic development in oil producing and exporting countries” as well as affect economies oil consuming nations. GOI Min Oil in public statement declared producing states not seeking anything which might harm either companies or consumers. “Our cause just and we not demanding anything which unjust”. Prior departure all delegates expressed complete satisfaction with accomplishments conference.
No public reference made to proposals for joint prorationing although hope expressed each participant would study ways to secure stability prices and limit production in order ensure stable and regular revenue to producing states.