Office of the Historian

196. Memorandum by Philip A. Odeen of the National Security Council Staff1

Washington, August 20, 1973.
  • MEMORANDUM FOR
    • The Honorable William J. Casey
    • The Honorable William E. Simon
    • Mr. Kenneth Dam
    • Mr. Charles DiBona
    • Mr. Peter Flanigan
    • Mr. Samuel Hoskinson
    • Mr. Stephen Wakefield
    • Mr. John Sawhill
    • Mr. Stan Katz
  • SUBJECT
    • Yakutsk and North Star LNG Projects

Dr. Kissinger has asked the Committee on International Aspects of Energy to conduct a study of the national security, economic and foreign policy aspects of the proposed Yakutsk and North Star LNG projects.

The study should assess the current status and likely future development of these projects. Special attention should be given to the role the U.S. government may be asked to play by the companies and to resultant issues that would have to be decided.

The study should examine the general national security and foreign policy issues involved and, where applicable, the options. For example, the study should address:

  • —The national vulnerability arising from dependence on the projected quantities of Soviet LNG.
  • —The effect the projects could have on U.S.-Soviet and U.S.-Japanese relations, with particular emphasis on the implications for U.S.-Japanese relations of various participation arrangements currently under consideration.
  • —Technical issues, including questions of technology transfer.
  • —Economic issues, including the balance of payments and cost implications and the effect of domestic deregulation. Insofar as possible, the likely economic feasibility of the prospect should be included in terms of probable future gas prices and demand levels;
  • —Financial questions, including those relating to possible Export-Import Bank credits and loan guarantees, LNG tanker ownership and possible Maritime Administration financing and guarantees; and,
  • —Likely Congressional attitudes toward the projects and toward alternative USG actions on the above issues.

This study should be undertaken by an ad hoc committee composed of your representatives and chaired by a representative of the NSC staff. An initial report should be submitted by September 15, 1973.

Philip A. Odeen
2
Director, Program Analysis
  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 251, Agency Files, National Energy Office, Vol. III. Confidential. Attached was the August 15 memorandum from Odeen and Sonnenfeldt to Kissinger; see footnote 15, Document 193.↩
  2. Odeen signed “Phil Odeen” above his typed signature.↩