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March 29, 1974 - Image 7

Resource type:
Michigan Daily, 1974-03-29

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Friday, March 29, 1974


Page Seven

Friday, March 29, 1974 THE MICHIGAN DAILY

Exxon claims U.S. government
encouraged Iran oil transaction

WASHINGTON () - A former
Exxon Corp. executive testified
yesterday that American oil
companies went into business in
Iran at the request of the U.S.
government in the interest of
naitonal security.
"It was not our idea at all,"
Howard Page told the Senate
subcommittee on multinational
He said then Under Secretary
of State Herbert Hoover acted as
emissary of President Dwight
Eisenhower in presenting the re-
quest for American oil company
assistance in bolstering the Iran
economy through oil production.
EXXON, he said, was not inter-
ested as a commercial proposi-
tion because it had foreign oil
concessions elsewhere, sufficient
to supply its market demand.
He said there was a particular
problem with Saudi Arabia,
where Exxon as a partner in
Aramco had the largest conces-
sion in the world.
He said he personally t a l
King Saud in Saudi Arabia to
recognize that the American part-
ners in Aramco were entering
Iran as "a political matter at
the request of the government"
and that as a result the com-
panies might not be able to in-
crease their production and ex-
port of Saudi Arabian oil "f o r
PAGE SAID he had no docu-
mentation, but the King said
"yes, but in no case were we to
lift more than we were obligat-
ed to lift in Iran to satisfy the
requirements of doing the jot)."
"We were under heavy pres-
sure," Page said. "If we didn't
play ball we could have lost the
Aramco concession."
Page said the State Depart-
ment decided that the major oil
companies, with interests also in
Saudi Arabia, should be th e
principal American partners in
the Iranian consortium because
they were the only ones able to
market oil overseas in desired

BUT HE SAID the State De-
partment decided also that the
American independent companies
should participate to the extent,
of five per cent.
He said every American com-
pany that wanted to participate
was allowed to do so.
Chairman Frank Church (D-.
Idaho), said he has asked the
State Department to declassify
documents dealing with the fo'--
mation of the Iranian Coasort-
ium. In this, American com-
panies participate in Iranian oil
production operations along with
British Petroleum, Royal Rutch
Shell and CFP, a French 3om-
CHURCH SAID earlier a break-
up of this monopoly would be
healthy for oil consumers of this
nation and "inject a goodly mea-
sure of competition into a sys-
tem that now lacks it."
In other energy developments
The American Petroleum In-
stitute said last year's oil price

increases a p p a r e n t l y have
brought substantial improvement
to U.S. petroleum reserves. But
the improvements by exper's
were not reflected in the official
annual estimate issued by the
Institute, which reported s de-
crease of one billion barrels in
"proved recoverable reserves."
" Chairman Russell Peters'nt
of the Council on Environment al
Quality told a Senate subcommit
tee the administration will not
ask for legislation waiving en-
vironmental impact statements
for energy projects.
9 The Federal Power Com-
mission predicted prices of na-
tural gas and electricity w I 11
triple over the next few years
unless inflation is brought un-
der control.
t The House Ways and Means
Committee began another rwind
in its oil-tax reform fight. Com-
mittee staff experts and the Trea-
sury clashed over whether a new
windfall profits levy and full
plowback plan would raise any
new revenue.

Pentagon plays ganes
Hughes discloses war ed aics
exercises in Indochina presents
WASHINGTON 6P) - The Pentagon has acknowledged it conductsC i
large-scale aerial war games over Southeast Asia and continues toM
furnish 'hostile fire pay" to U.S. troops stationed there, Sen. Harold Ca ine Friday &
Hughes (D-Iowa) said yesterday. and
In a letter to Hughes, a Pentagon spokesman said Air Force
Sir aurnce ~. Saturday
planes do conduct training flights in Southeast Asia but "do not
employ large numbers of bomb-loaded planes. CH 29&30
IN ANSWER to a specific question, the spokesman, Rear Adm. Olivier
T. Bigley, said such an exercise was conducted in Thailand on Nov.
15, when 92 sorties were flown. ADM ISSION
"No aircraft carried bombs, and no ordnance of any kind next week:
was delivered during the exercise," the admiral said. April 5 & 6 $1.00
Bigley also told Hughes that U.S. forces in non-combat status in. PUTNEY SWOPE
Cambodia, Laos, and North and South Vietnam are entitled by law
to "hostile fire pay," because "theirhpresence in these countries makesNlnt
them vulnerable to being exposed to hostile fire ..,"N t r lS en e A d o iu
"THE DEFENSE Department says that these missions are en-
tirely within Thailand," Hughes told the Senate, "but I have received
a report, which I have thus far been unable to confirm, that these NEXT WEEK:April5 &a6-PUTNEY SWOPE
aircraft have ventured into the nations of Indochina."


Pd. Politicol Adv.

MARCH 29, 1974

If you
rent c




yocuttng off your nose
to spite




Paid Political Adv.

(or "Fibber




"McGee's Folly)

Throughout her campaign for C i t y Council, Human Rights Party.
candidate, Beth Brunton has addressed the important issues facing Ann
Arbor: Rent Control, community control of the police, city spending
priorities, and tax reform.
Her Democratic opponent has invented a non-issue: that a vote
for Beth could conceivably elect the Republican by "splitting the pro-
gressive vote."
In the First Ward, this argument is absurd. The GOP hasn't won
the First Ward in years. Last year, during a Republican sweep, HRP and
Democrats polled 70 per cent of the vote. The Republican finished
The Democratic candidate has .fabricated this myth to scare up
support for her lackluster campaign. More and more, she is dodging
the controversial issues to campaign on this mythical non-issue.
It is hard to understand why the Democrat thinks she is "progres-
sive," considering her position on the issues.
! Beth opposes the lay-off of city workers. Both her oppo-
nents do not.
0 Beth supports community control of the police. Her oppo-
nents do not.
0 Beth supports rent control. The Republican candidate
opposes it. The Democrat changes her mind from day to day
and audience to audience.
* Vote for the only "progressive" candidate in the First
Vote B runton

. .

your face?
This rent-control bill "gets" the landlords.
And this rent-control bill can "get" you.
It's a case of overkill -
overkill from a very badly-designed bill:
The drafters of the bill forgot one thing.
They forgot that you get only what there's
money to pay for.

Your apartment gets painted...
if there's money.
Your stove gets repaired ...
if there's money.

Your carpet gets cleaned...
if there's money.
They forgot to leave any money.
They yvrote a bill that puts your landlord
and you "in the hole." (Very tricky.)
Why doesn't the apartment owner
borrow some money?
Bankers lend money to make money.
And, they're not readily bamboozled.
They know that, behind the 7,950 words in
Amendment A and the alleged profit of 14%
for apartment owners - there's just one thing
... There's a losing proposition that's
guaranteed by law!
If you think there's a chance the bankers
might help, you're dead wrong.
There's no chance.
This bill is a bad bill.
It goes too far.
It goes so far that it hurts some of the
people it is supposed to help. It hurts you.

urge you to



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