376. Telegram 252354 From the Department of State to the Embassy in Venezuela1
252354. Subj: Venezuelan Oil Price Increase Ref: A) Caracas 11015; (B) State.
For the Ambassador from the Secretary.
1. I am transmitting State 252282 to you for your information. As you will have seen in the press (a summary of the Washington Post account was cabled earlier today, December 29), there is strong reaction within the USG and general public to the latest price increases.
2. We are fully aware of the different economic and political realities between Venezuela and Arab Nations, and the fact that Venezuela continues to supply a very large percentage of U.S. oil imports. However, since latest price increase will have very important economic impact, unless you perceive important economic impact, unless you perceive objection, you should make known to appropriate GOV officials our deep concern over the drastic price rise at the earliest opportunity. You should draw, as appropriate, on points A, B and C of reftel.
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Summary: Kissinger instructed the Ambassador to express the U.S. Government’s deep concern about the steep increase in the price of petroleum.
Source: National Archives, Nixon Presidential Materials, NSC Files, Country Files, Box 797, Latin America, Venezuela, Vol. 2, 1972–. Secret; Immediate; Nodis. Drafted by Forrester on December 29; cleared by Kubisch; approved by Kissinger. In telegram 252282 to Tehran, Jidda, and Kuwait, December 29, the Department instructed posts to express concern over the destabilizing impact of price increases and to promote greater consultation and mutual understanding between oil producers and consumers. (Ibid., RG 59, Central Foreign Policy File, P810097–2368) In telegram 11015 from Caracas, December 28, the Embassy reported that Venezuela had increased its oil prices by 82 percent. (Telegram 11015 from Caracas, December 28; ibid., [no film number])
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