COMMITTEE ON INTERNATIONAL RELATIONS NINETY-FOURTH CONGRESS FIRST SESSION MAY 1, 1975 Printed for the use of the Committee on International Relations 53-813 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1975 For sale by the Superintendent of Documents, U.S. Government Printing Office COMMITTEE ON INTERNATIONAL RELATIONS THOMAS E. MORGAN, Pennsylvania, Chairman CLEMENT J. ZABLOCKI, Wisconsin L. H. FOUNTAIN, North Carolina CHARLES WILSON, Texas DONALD W. RIEGLE, JR., Michigan CARDISS COLLINS, Illinois STEPHEN J. SOLARZ, New York HELEN S. MEYNER, New Jersey DON BONKER, Washington WILLIAM S. BROOMFIELD, Michigan BENJAMIN A. GILMAN, New York ROBERT J. LAGOMARSINO, California MARIAN A. CZARNECKI, Chief of Staff SUBCOMMITTEE ON INTERNATIONAL RESOURCES, FOOD, AND ENERGY CHARLES C. DIGGS, JR., Michigan, Chairman ROBERT N. C. NIX, Pennsylvania CARDISS COLLINS, Illinois STEPHEN J. SOLARZ, New York BENJAMIN A. GILMAN, New York PIERRE S. DU PONT, Delaware LESLIE MCKNIGHT YATES, Subcommittee Staff Consultant CONTENTS 58 382ST 79L Bell, Joseph, Assistant General Counsel for International Conservation and Resource Development, Federal Energy Administration_-_ Conant, Hon. Melvin A., Assistant Administrator for International Energy Lamont, William J., attorney, Lobel, Novins, and Lamont.. Lobel, Martin, attorney, Lobel, Novins, and Lamont--- Robinson, Hon. Charles W., Under Secretary for Economic Affairs, De- Table on commitments and estimated disbursements of OPEC members' concessional aid in 1974, submitted by the Department of State_. Table on world commodity spot price index, submitted by the Department Table on international prices for representative fertilizer products, 1970–74_ Table from World Bank document entitled "World Economic Indicators," Table from World Bank document entitled "World Economic Indicators," May 1975 on prices and price forecasts.. Statement by the FEA on the authority given to the President by title 13 Statement by the FEA on the Agreement on an International Energy Table submitted by the FEA on EC oil imports by source, 1970-74- Table submitted by the FEA on U.S. oil. imports by source, 1970-74- 1. Text of "Solemn Declaration of Principles" issued at OPEC Summit 2. Letter to Hon. Arthur F. Sampson, Administrator, General Services Ad- ministration, from Attorney General Edward H. Levi responding to a Presidential request under section 708 of the Defense Production Act, for approval of immunity from antitrust laws and the Federal AUG 1 1975 APPENDIX-Continued 4. Agreement on an International Energy Program_ 5. Series of letters and information submitted by FEA regarding FEA's investigation of designated affiliates pursuant to the Attorney Gen- eral's opinion of March 28, 1975__. 6. Text of speech given by Secretary of State Kissinger on May 13, 1975, in Kansas City, Mo., entitled "Strengthening the World Economic Structure" before the Kansas City International Relations Council, and question and answer session following the speech___. 7. Texts of the Declaration of Dakar, the Action Programme and the reso- lutions adopted by the Conference of Developing Countries on Raw Materials, held at Dakar, Senegal, from February 4–8, 1975---- 8. Article from the Washington Post, February 18, 1975, entitled "Stable Page 9. Article from the Washington Post, February 22, 1975, entitled "Con- sumer Natons Nearing Unity on World Oil Talks". 10. Article from the Washington Post, March 8, 1975, entitled "U.S. Agrees 12. Article from the Journal of Commerce, April 10, 1975, entitled "IEA Role Sparks Clash at Paris Energy Talks". 13. Article from the Washington Post, April 16, 1975, entitled "Paris Meet- ing Collapses, Energy Talks at Dead End". 14. Article from the Wall Street Journal, June 10, 1975, entitled "The Al- U.S. INTERNATIONAL ENERGY POLICY THURSDAY, MAY 1, 1975 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERNATIONAL RELATIONS, SUBCOMMITTEE ON INTERNATIONAL RESOURCES, FOOD, AND ENERGY, The subcommittee met at 2 p.m. in room 2200, Rayburn House Office Building, Hon. Charles C. Diggs, Jr. (chairman of the subcommittee) presiding. Mr. Diggs. The subcommittee will come to order. This afternoon we will be considering U.S. international energy policy. The primary purpose of today's hearing is to analyze the direction of that policy, particularly in the aftermath of the failure of the recent preliminary conference in Paris to produce agreement among consuming countries, producers, and non-oil-producing countries on the agenda for a major international conference later this year. The specific areas of focus today include the Paris conference-an analysis of issues discussed, the United States and opposing positions, and the reasons for the failure; the International Energy Agency, its future viability following the Paris talks; and related legislation; namely, H.R. 2650, a bill introduced by our distinguished House Minority Leader from Arizona, Mr. Rhodes, setting forth the proposals of the administration for congressional authorities to carry out the terms of the agreement on an International Energy Agency. And we are particularly interested in the many implications of section 1306 of that bill, authorizing the President to control the prices of petroleum and, in section 1313, providing immunity from antitrust laws. It is also hoped that today's hearing will provide an opportunity for further consideration of the implications for U.S. policy of major related developments and activities of the past few months on both the international and national levels. Internationally, we have seen the November 19, 1974, agreement of 16 of the 24 members of the Organization of Economic Cooperation and Development (OECD) to establish an International Energy Agency which would carry out the provisions of an international energy program through promoting cooperation among the major oilconsuming nations, the industrial countries of the West, plus Japan. Now, this cooperation is to occur in such areas as energy sharing, energy conservation, research and development, international oil allocation, nuclear enrichment, and developing an emergency self-sufficiency in oil supplies. In March, the members of the Organization of Petroleum Exporting Countries met and agreed to meet with oil consuming and developing nations in April to discuss such issues as the stabilization of oil prices, |