251. Telegram From the Mission to the Organization for Economic Cooperation and Development to the Department of State1

20828. CEDTO. Subject: OECD Oil.

Following is text of oil resolution (CES/67.33, with amendments) agreed by Council at today’s meeting (non-essential words omitted): Begin text. Council having regard article 2 of Convention on Organization for Economic Cooperation and Development 14 December 1960; having regard to recommendation of Council of OEEC, approved Council on 30 September 1961 (C (69) 83) Final, OECD/C (61)5): instructs Special Committee for Oil: (1) convene international industry advisory body to inform Special Committee for Oil on technical matters relating to availability oil for member countries; (2) report to Council ASAP on any prospective shortfall in supplies as compared with the estimated level of consumption in member countries. End text.
As expected, FRG and France abstained, with Germany expressing hope its decision would not prevent others from proceeding with [Page 451]work.2 Greece and Belgium needed final instructions from capitals in light FRG position. Portugal accepted ad ref and Turkey abstained pending review amended text by GOT. All others accepted resolution quoted above. Resolution to become effective soon as replies from stragglers. Belgium accepted shortly after conclusion meeting and Greece almost certainly will do so tomorrow. Council will not reconvene on question and we can now safely proceed.
As agreed in pre-session caucus of U.S., FRG, U.K. and SecGen it was made clear by SecGen that abstention by any member did not preclude such member from participating in Oil Committee deliberations or prevent cooperation between its companies and industry advisory group. SecGen stated chairman Oil Committee (Beckett, U.K.) standing ready call Oil Committee together 10:00 Friday 30 June. Washington should decide on and send delegation without further exchange this subject.
No press communiqué will be issued. Press inquiries will be answered straightforwardly that Council decision has been taken with some members abstaining from decision. Abstention does not mean objection to decision. Abstaining countries will be named if inquirer specifically asks for names.
I very much appreciate prompt and responsive message from Department in 216353,3 which was decisive in bringing this matter to satisfactory conclusion.
  1. Source: National Archives and Records Administration, RG 59, Records of the Department of State, Central Files, 1967–69, PET 3 OECD. Limited Official Use; Immediate. Repeated to Athens, Bonn, Brussels, London, and Rome. Passed to the White House and USIA.
  2. On June 26 German Economic Minister Schiller told Ambassador McGhee that Germany would be abstaining. McGhee reported that Schiller “said he understood our interest in a declaration of emergency and our wish to demonstrate Western solidarity in the form of OECD action but did not find either point persuasive.” Schiller said that any overt solidarity on the part of the West would simply provoke Arab solidarity. The Americans did not press them on the matter. (Telegram 15260 from Bonn, June 26; ibid., PET 1 OECD) In a conversation the same day in Washington, Dr. Dietrich, Economic Counselor of the German Embassy, also discussed the decision. Among the political considerations, he mentioned: “The Soviets are exploiting the Middle East question for their own objectives on the German question,” and “Any FRG action which appears anti-Arab will favor the Communists, especially in Libya.” (Memorandum of conversation, June 26; ibid., PET 3 OECD)
  3. Not found.