93. Memorandum From the President’s Assistant for International Economic Affairs (Flanigan) to the President’s Assistant for National Security Affairs (Kissinger), the Assistant Secretary of State for Economic Affairs (Trezise), and the Director of the Office of Emergency Preparedness (Lincoln)1

Peter Towe of the Canadian Embassy called on me on September 29 to review the status of bilateral Canadian-U.S. negotiations on Canadian oil imports to the United States. As indicated in the attached paper2 which he left with me, the Canadians have decided not to go forward with these talks3 at this time, supposedly because their economic people are too busy with more important matters and because the “climate does not seem an appropriate one.” In a frank discussion of the problems, I pointed out that Canadian access to the U.S. market would overcome some of the current problems by providing an opportunity for greater Canadian exports. I urged that the Canadians reschedule the talks at the earliest possible date in the mutual interests of both the United States and Canada. I did point out, however, that the Oil Policy Committee would now have to set the maximum level of crude oil imports for Canada for 1972.

Towe understood that the Oil Policy Committee action must be taken. He also indicated hope that Canada’s oil export problem, as well as the other economic problems between Canada and the United States, would soon be solved.

  1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 671, Country Files, Europe, Canada, Vol. III, September 1971–December 1972. No classification marking.
  2. Not printed.
  3. A reference to the ongoing bilateral negotiations on Canadian oil imports into the United States and the security of those imports.