357. Memorandum From the Chairman of the Petroleum Study Committee (McDermott) to President Kennedy0
I am pleased to submit a Report based upon a comprehensive study of petroleum requirements and supplies in relation to national security objectives, undertaken in accordance with your directive issued December 2, 1961.1
The Conclusions and Recommendations of the attached Report are the result of extensive study by the Committee and its Task Force group and the report has been signed on behalf of all participating departments.
At the request of the Department of Interior, I have been asked to report to you their opinion that the conclusions relating to costs and benefits are potentially misleading. Interior contends that “while estimates purportedly covering costs to the economy are included in the report, the counter-balancing benefits which flow from the maintenance of the petroleum industry in its present state of health were not reduced to comparable terms.” The Interior member also states “that existing legislation and delegations vest the Director of the Office of Emergency Planning with adequate authority to deal with the security aspects of the petroleum problem and that, in consequence, the recommendation in the [Page 800]report dealing with coordination of interagency activities is unnecessary and could lead to future difficulty in assessing responsibility for development and coordination of petroleum policy within the Executive Branch.”
Except for this comment by the Department of Interior, the attached Report has the unanimous support of all participating departmental members, the Committee’s advisers and observers.
- Source: Kennedy Library, National Security Files, Kaysen Series, Economic Policy, Oil Policy. No classification marking. A September 5 covering memorandum from McDermott to Kaysen transmitted the report and noted with appreciation Kaysen’s contribution to the study.↩
- Document 344.↩
- For Official Use Only.↩
- Not printed.↩
- 27 Federal Register 1779.↩
- Not printed.↩