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Personnel - Conflict of Interest: C
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25350601
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Personnel - Conflict of Interest: C
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Philip W. Buchen Files
Philip Buchen's General Subject Files
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Civil service
Conflict of interests
Ethics
Presidential appointments
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The original documents are located in Box 37, folder "Personnel - Conflict of Interest: C"
of the Philip Buchen Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
Buchen Carey haspens Edge
THE WHITE HOUSE
WASHINGTON
pls file mofacther
me,
July 25, 1975
MEMORANDUM FOR:
PHIL BUCHEN
FROM:
KEN LAZARUS Kl
You asked for a report regarding allegations that the office of
Governor (then-Congressman) Hugh Carey urged the Federal
Energy Administration to grant an oil export license to his
brother, Ed Carey. Attached for your information is a
newspaper article dated June 25 at Tab A.
The General Counsel of FEA informs me (see letter dated
July 21 at Tab B) that FEA has conducted an internal
investigation of these allegations. Further, the Department
of Justice became involved in the matter at the request of
Governor Carey and FEA promptly turned over to Justice the
tentative results of its investigation. The Department of
Justice intends to pursue the investigation further.
It should also be noted that FEA has provided Congressman
John Moss and his subcommittee with information concerning
its internal investigation.
Lastly, an article in today's New York Times (Tab C) points
to a further development in this matter.
No further action by this office would appear to be necessary.
FORD
LIBRARY
Digitized from Box 37 of the Philip Buchen Files at the Gerald R. Ford Presidential Library
1 FORD
OIL CALLS LINKED
975
O CAREY' OFFICE
Calls on Oil Deal Linked to Carey Office
Ex-U.S. Aide Cites Repeated
Continued From Page 1, Col. 4
"Thev got a cold shoulder tial economic hardship. A mere
simply because we were so dis- 77 that there is an oppor-
Efforts for Deal Involving
declined to be named.
organized,"
the
former
oide
10
at
a
higher
price
the Governor's Brother
"The only reason that it
scid. "It was not for any other in a foreign market shall not
stands out was that it wasn't
reasons."
be deemed. by itself. to consti-
the normal constituent prob-
"Finally we said, 'you're just
tute an economic hardship."
lem," the former aide said.
going to have to go to [the De-
Gorman C. Smith, F.E.A.'s as-
By MARTIN TOLCHIN
The normal requests from
partment of] Commerce,"
the
sistant administrator of regu-
Special to The New York Times
Congressmen, he said, were for
former aide recalled.
latory programs, contended
WASHINGTON, June 25
fuel for filling stations, facto-
Governor Carey said today
that the fifth license, to ex-
The Federal Energy Adminis-
ries. trucks. bearses and other
that "my formal request yes-
pert 250,000 barrels of oil,
tration was told by one of its
industrial purposes in the Unit-
terday to the Attorney General
"could have serious adverse
for a full invesigation was for
former officials today that re-
ed States. In this case, however,
economic consequences."
it was a request to license the
the very purpose of ending
"F.E.A. believes that a strict:
peated efforts were made by
exporting of off from the Unit-
speculation by unnamed
export-control program is ad-
the office of Governor Carey,
ed States to the Bahamas.
sources."
solutely essential so long as
while he was serving in the
In a related development, the
Regulation Cited
Congress continues to require
House of Representatives, to
Times also has received infor-
Meanwhile, officials of the
price and allocation controls."
intervene to obtain a Federal
mation from a petroleum indus-
Federal Export Administration
Mrs. Smith said in a letter to
license in an oil deal involving
try source that Edward M.
and the Commerce Department,
Thiton H. Dobbin, the Depart--
his brother, Edward M. Carey.
Carey has had difficulty meet-
which approved and issued the
ment of Commerce's assistant
ing payments on his Bahamas
The former aide said that be-
licenses, respectively, agreed
secretary for domestic and in-'
refinery. and that he was espe-
ternational business.
that a regulation issued last
tween December, 1973, and
cially hard-pressed in early
April was aimed specifically at
March, 1974, his office had re-
1974, when the oil deal was
preventing future oil deals be-
8.
ceived six to eight telephone
made.
tween Mr. Carey and Bart B.
Is
calls from members of Mr.
"He's had continuous finan-
Chamberlain, an Alabama oil-
Carey's Congressional office on
cial difficulties," the source said.
man who shipped his crude oil
"So far, however, he's succeed-
behalf of the. licensing. The
to a Bahamas refinery jointly
Ji
ed in making all his payments."
owned by Mr. Carey and Stand-
former aide said that he had
Mr. Carey, asked to comment,
ard Oil of California.
C)
received two of the calls him-
said that he had met all pay-
th
The refined oil was then
self, and that the remainder
ments to the E.N.I. group. an
sold to Mr. Carey's New TE
had been received by his
Italian conglomerate that built
England Petroleum Corporation ST
and financed the Bahamas re-
colleagues.
(NEPCO). The oil, frozen do- ei
The New York Times learned
finery. He said that he was not
mestically at $5.10 a barrel,
especially hard-pressed in early
of the alleged intervention
was sold to the refinery at an A
1974. and said that contrary re-
from an official in the Federal
average price of $13.51 and V
ports "just are not true."
then sold in New York at of
Energy Administration, which
Governor Carey, asked at a
prices of up to $23 a barrel.
3,
is conducting an investigation
news conference yesterday
"We wanted to preclude the
e
of charges that political pres-
whether members of his staff
granting of any further licenses
u
had intervened on behalf of the
sures were exerted to obtain
on those terms," said Raueur
C
licenses in the oil deal, replied
the licenses. The Times then
that he had no such knowledge.
H. Meyer, director of the Office!
interviewed the former official,
"Knowing my staff as I do,
of Export Administration.
who, like the present official,
I don't believe any one of them
The regulation came the day
would have done that without
after his administration had
Continued on Page 70, Column 6
asking me," the Governor said.
granted Mr. Chamberlain his
Nevertheless. the former Fed-
fourth export license. The li-
eral Energy Administration aide,
censes were issued on Dec. 26,
who was not among the three
1973; Jan. 2, 1874; Feb. 26,
interviewed by the Cox news-
1974, and April 14, 1974. An
papers. which first published
application for a fifth license,
the story, said that he distinctly
March 20. 1975. was rejected.
FORD
is
remembered the calls because
The regulation provides that
they were rquests to ship oil
oil can be exported only after
out of th country. rather than
"the exporter has made reason-
into a Congressional district.
able efforts to dispose of this
GERALD
LIBRARY
"They said, "Listen, we've
crude oil domestically and due
got a problem." the former
to particular circumstances be-
aide recalled. "They said, 'we
yond hisc ontrol, such oil can-
want to get some help on some
not be disposed of domestically
licenses."
without his incurring substan-
T
E ( #
FORD LIBRARY
FEDERAL ENERGY ADMINISTRATION
WASHINGTON, D.C. 20461
JUL 2 1 1975
Mr. Ken Lazarus
The White House
Washington, D.C.
Dear Mr. Lazarus:
This is in response to your note of July 15, 1975 asking for
my comments on what the FEA has done in response to the alle-
gations that the office of Governor (then-Congressman) Hugh
Carey of New York called the Federal Energy Office on behalf
of his brother, Ed Carey, the president of New England Petro-
leum Company, urging the granting of an oil export license.
When news stories involving this matter first appeared, Frank
Zarb ordered an internal FEA investigation to determine
whether in fact Governor Carey's office had contacted the
FEO and whether there had been any impropriety on the part
of Governor Carey or any FEO official. Shortly thereafter,
Governor Carey asked the Attorney General to conduct an in-
vestigation into the matter, which the Attorney General agreed
to do. At about the same time, Congressman John E. Moss also
announced that he intended to open an inquiry into the matter.
When the Justice Department became involved, we promptly
turned over to it the tentative results of our investigation.
We have also provided some information to Congressman Moss
in response to his inquiries. Copies of our correspondence
with both the Department of Justice and Congressman Moss are
enclosed.
The Department of Justice apparently intends to pursue the
investigation further. We are in close contact with the
Department and will continue to provide it with the assis-
tande it needs. We also intend to be as cooperative as
possible with Congressman Moss' Subcommittee, subject, of
course, to limitations imposed upon us by the Department of
Justice because of its ongoing investigation.
If there is any additional information I can provide you,
please let me know.
Sincerely,
(Signed) Robert E. Montgomery, Jr.
FORD
Robert E. Montgomery, Jr.
General Counsel
LIBRARY
Enclosures
July 8, 1975
G. Allen Carver
General Crimes Section
Criminal Division
Department of Justice
Washington, D.C. 20530
Dear Allen:
This is to confirm the understanding reached at the
meeting in your office on July 7, 1975 concerning the roles
of our respective agencies in the continued investigations
involving the Citronelle-Mobile Gathering Corporation, New
England Petroleum Company ("NEPCO") and others.
The FEA plans to continue its current audits of the
crude oil companies owned or controlled by Mr. Bart Chamber-
lain and of NEPCO to determine whether there have been any
violations of FEA pricing or allocation regulations. We
will have the audit teams in each case contact Rudy Giuliani
and Jeffrey Harris of the U.S. Attorney's office in New York
for the purpose of coordinating our respective investications.
We understand that Messrs. Giuliani and Harris will provide
the Chamberlain audit team with copies of their notes on
their interview with Mr. Chamberlain and the documents ob-
tained as a result of the subpoena served on him. We also
understand that both audit teams will be provided with a
list of issues of concern to the Department of Justice and
specific areas of inquiry in order that the audit teams can
provide as much assistance to the U.S. Attorney's office as
possible.
With respect to the possible involvement of Senator
Sparkman and Governor Carey in the granting of export licenses
to Mr. Chamberlain, we have, as you know, provided you with
copies of all evidence gathered within FEA with respect to
that matter, and we have agreed to provide you immediately
with any additional evidence discovered by us. We further
understand that any further inquiry with respect to this
issue will be conducted by the Department of Justice, with
whatever assistance and cooperation from the FEA as you might
require.
FORD : GERALD LIBRARY
- 2 -
Finally, we have agreed to provide the U.S. Attorney's
office in New York with as much assistance in the inter-
pretation of FEA regulations as possible. Carl Corrallo of
my staff, who is knowledgeable in this area, will arrange
to meet with Messrs. Giuliani and Harris in New York next
week. In addition, we are providing them with various FEA
memoranda, interpretations and other documents that relate
to the issues raised.
As you know, we are anxious to coordinate with and
assist you in these matters to the maximum extent possible.
If there is anything further we can do to facilitate our
respective inquiries, please call me at 961-8301.
Sincerely,
(Signed) Douglas G. Robinson
Douglas G. Robinson
Deputy General Counsel
CC: Rudolph W. Giuliani
bcc: Frank G. Zarb
John Hill
Robert E. Montgomery, Jr.
Gorman C. Smith
Avrom Landesman
Carl Corrallo
GERALD LIBRARY 4. FORD
July 2, 1975
John C. Keeney
Acting Assistant Attorney General
Criminal Division
Department of Justice
Room 2107
Washington, D.C. 20530
Dear Jack:
Enclosed please find two additional documents which
might be of interest to you in your investigation of the
Citmoco-BORCO-NEPCO matter.
Sincerely,
(Signed) Douglas G. Robinson
Douglas G. Robinson
Deputy General Counsel
Enclosures
LIBRARY GERALD Bituro
June 30, 1975
John C. Keeney, Esquire
Acting Assistant Attorney General
Criminal Division
Department of Justice
Room 2107
Washington, D.C. 20530
Dear Jack:
Pursuant to our telephone conversation of. this after-
noon, please find enclosed:
(1) A report to Frank Zarb on the results to date of
an internal FEA investigation of the Federal Energy Office's
involvement in the granting of export licenses for crude oil
produced by Citronelle-Mobile Gathering Corporation ("Citmoco")
in Alabama and sold to a New England Petroleum Company affil-
iate for refining in the Bahamas and resale as residual oil
on the East Coast.
(2) A draft memorandum prepared on April 25, 1974 by
Chris Kirtz, an attorney in the General Counsel's office,
which deals with a limited aspect of the transaction. (This
draft memorandum should not be treated as an authoritative
interpretation of FEA regulations; it is possibly inaccurate
in some respects.) In a brief search of our files, WE have
been unable to determine whether there was any follow-through
on this memorandum.
(3) A memorandum I prepared for the file on a meeting
we had last Saturday with a former FEO employee, John Venners.
In view of the fact that the Attorney General has
referred to the Criminal Division the investigation of this
matter to determine whether or not there were any violations
of criminal law, particularly on the part of New England
Petroleum Company or Governor Carey, we have decided that it
would be an unnecessary duplication of effort for us to con-
tinue our own internal investigation. Therefore, we are
deferring to the Department of Justice's investigation, and
will offer you our full cooperation and assistance in that
is
FORD
GERALD
LIBRARY
- 2 -
project. You might want to initiate your investigation by
contacting Mr. Thomas Hinkel, who has been in charge of the
FEA's internal investigation, at 2000 M Street, N.W.,
Room 6128J, telephone 254-3927.
You should also be advised that the FEA's Office of
Compliance is today initiating a complete and thorough audit
of Citmoco to determine whether that company violated the
FEA's crude oil pricing or allocation regulations at any
time during the Arab embargo (November 1973-April 1974). We
intend to pursue our routine administrative investigation
of, this company until completed, unless we receive contrary
advice from the Department of Justice or unless evidence of
criminal conduct is discovered, in which event we will cease
our own investigation and turn the matter over to the Depart-
ment of Justice.
Please let me know if there is anything further we can
do to assist you in this matter.
Sincerely,
(Signed) Douglas G. Robinson
Douglas G. Robinson
Deputy General Counsel
Enclosures
CC: Frank G. Zarb
bcc: Robert E. Montgomery, Jr.
Gorman C. Smith
Fred Stuckwisch
Thomas Hinkel
FORD i LIBRARY 07V830
JOHN E. MOSS, CALIF., CHAIRMAN
ROOM 2323
PICHARD L. OTTINGER, N.Y.
JAMES M. COLLINS, TEX.
RAYBURN HOUSE OFFICE BUILDING
ROBERT (BOB) KRUEGER, TEX.
NORMAN F. LENT, N.Y.
PHONE (202) 225-4441
ANTHONY TOBY MORFETT, CONN.
EDWARD R. MADIGAN, ILL.
JIM SANTINI, NEV.
MATTHEW J. RINALDO. N.J.
W.S. (BILL) STUCKEY, GA.
SAMUEL L. DEVINE, OHIO
JAMES H. SCHEVER, N.Y.
(EX OFFICIO)
HENRY A. WAXMAN, CALIF.
PHILIP R. SHARP, IND.
ANDREW MAGUIRE, N.J.
HARLEY O. STAGGERS, W. VA.
(EX OFFICIO)
25S
MICHAEL R. LEMOV
CHIEF COUNSEL
CONGRESS OF THE UNITED STATES
HOUSE OF REPRESENTATIVES
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS
OF THE
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE
WASHINGTON, D.C. 20515
June 23, 1975
Honorable Frank G. Zarb
Administrator
Federal Energy Administration
Washington, D. C. 20461
Dear Mr. Zarb:
The Washington Post has recently reported that the Office
of Export Administration, in December, 1973 and January and
February, 1974, granted licenses to Mr. Bart Chamberlain per-
mitting the export of domestic crude oil to a Bahamas refinery
at inflated prices. The Post story also refers to an inquiry
made by the Federal Energy Office into the granting of those
licenses and the subsequent exporting of crude oil to the
Bahamas.
It is requested that you submit to the Subcommittee on
Oversight and Investigations a full report on this matter. In
addition to any other information that you may have, it is
requested that you provide answers to the following questions:
(a) Would the granting of licenses by the Office of
Export Administration permit the sale of domestic
crude oil to offshore refineries at prices in excess
of the ceiling prices applicable to sales of crude
oil for processing at domestic refineries?
(b) Did the FEO (or FEA) conduct an investigation into
the matter described above?
FORD
Honorable Frank G. Zarb
June 23, 1975
Page 2
(c) What conclusions and actions resulted from that
investigation?
(d) What FEO (or FEA) employees worked on that investi-
gation?
(e) What persons outside the FEO contacted FEO officials
with the purpose or effect of di touraging further
inquiry into this matter?
Your prompt response will be much appreciated.
Sincerely,
JOHN E. MOSS
Chairman
Oversight and
Investigations Subcommittee
JEM:dsh
ORD
LIBRAD.
JUL 10 1975
Nonorable John E. Moss
Chairman, Subcommittee on Oversight
and Investigations
Committee on Interstate and Foreign
Commerce
2323 Rayburn House Office Building
Washington, D.C. 20515
Dear Mr. Chairman:
This is in response to your letter of June 23, 1975 requesting
a report on the FEA's inquiry into the granting of export
licenses to a Mr. Bart Chamberlain, which licenses had
the effect of permitting the export of domestic, price-
controlled crude oil to a Bahamas refinery at uncontrolled
prices.
When the first news stories on this matter appeared, I directed
Corman C. Smith, Assistant Mministrator for Regulatory
Programs, to conduct an inquiry into the matter to determine:
(1) whether, and the extent to which, Senator John Sparkman
and former Representative Hugh Carey (now Governor of Sew
York) had contacted what was then the Federal Energy Office
("FEO") in connection with the granting of export licenses
to Mr. Chamberlain or companies owned by him; (2) the extent
of the FEO's involvement in the granting of those licenses;
and (3) whether there exist any lingering compliance issues
or problems with our regulations or procedures which require
current corrective action by the FEA. This internal PEA
inquiry was undertaken principally to provide me with suffi-
cient relevant facts to determine what, if any, additional
action might be appropriate on FEA's part.
Our inquiry involved only interviewing current FEA and a
limited number of former FEA or FEO personnel to determine
the facts of their involvement in this matter, and searching
our files for documents that might be relevant to this matter.
OGC
DGRobinson:1b:rm5120:x8301:005256
7/7/75
GERALD FORD LIBRARY
- 2 -
The information obtained through chis inquiry was turned over
to the Department of Justice last week, and we have met with
representatives of the Criminal Division of the Department of
Justice and the U.S. Attorney's office for the Southern
District of New York to determine whether there is any other
way that we can assist them in this inquiry.
Since the investigation is now fully under the control of
the Department of Justice, we felt compelled to seek the
Department's concurrence on the release to your Subcommittee
of the documents gathered in our own internal investigation
and turned over to it. The Department has asked for the
opportunity to review these documents before their release,
and it is currently doing SO. Upon completion of this review
we will promptly supplement this response to your request.
We are also conducting ongoing administrative audits of both
the New England Petroleum Company and Nr. Chamberlain's crude
oil producing companies to determine whether there have been
price and/or allocation regulation violations. Those inves-
tigations are also being closely coordinated with the Depart-
ment of Justice. Once those investigations have been con-
cluded, we will provide the results to your Subcommittee.
In order to allay any concern you might have that the TEA is
not providing to your Subcommittee information that it has
provided to the press, I should indicate that we have attempted
to keep the results of our inquiry confidential. While some
current FEA personnel in the first few days of the inquiry
granted limited interviews to the press concerning this matter,
we have subsequently notified all employees involved that
they are no longer to discuss it publicly while it is the
subject of a Justice Department investigation. Moreover, to
the best of our knowledge no current FEA employee was the
source of recent newspaper accounts purportedly describing
the contents of internal FEA memoranda. Most of the infor-
mation appearing in such stories was apparently obtained from
former FEA or FEO officials, over whom, of course, we have
no control.
You have my continued commitment to be as open as possible
with your Subcommittee. We will gladly provide you with
information that does not directly relate to the Justice
FORD is LIBRARY 079830
- 3 -
Department's investigation. We consider some of the infor-
mation specifically requested in your letter of June 23 to
fall in this latter category, and therefore answers to those
specific requests are enclosed.
Sincerely,
Frank G. Zarb
Administrator
Enclosure
Note: This letter has also received the concurrence of the
Department of Justice per G. Allen Carver, Criminal Divi-
sion, 7/9/75.
bcc: Signer/Exec. Comm.
Cong. Affairs
D. Robinson
QERALD FORD LIBRARY
INFORMATION REQUESTED BY
THE HONORABLE JOHN E. MOSS
ON JUNE 23, 1975
(a) Information Requested:
"Would the granting of licenses by the Office of Export
Administration permit the sale of domestic crude oil to off-
shore refineries at prices in excess of the ceiling prices
applicable to sales of crude oil for processing at domestic
refineries?"
Answer:
Crude oil can be exported only pursuant to a valid export
license. The FEA regulations have always provided that crude
oil (or any refined product) sold for export is exempt from
both FEA's allocation and pricing regulations. 10 C.F.R.
SS 211.1 (b) (1), 212.53 (a). Therefore, assuming there are
no other factors bearing on the issue, the sale of crude oil
by a U.S. producer to a foreign refiner for export pursuant
to a validly issued export license is exempt from U.S. price
controls and can occur at whatever price the parties agree
upon.
However, the issue may be complicated by other factors.
For example, 10 C.F.R. $ 211.63 (a) provides that a supplier/
purchaser relationship for the sale of non-stripper well crude
oil that was in effect on December 1, 1973 must be maintained
unless it terminated by mutual consent of the parties or unless
the December 1 purchaser is given the opportunity to meet a
higher lawful price offered by another purchaser. The argu-
ment has been made that the export exemption of $ 211.1 (b) (1)
allows a producer that was a party to a December 1 relation-
ship covered by S 211.63 (a) unilaterally to terminate that
relationship by selling the oil for export. There might also
be some question as to whether 10 C.F.R. $ 210.62(c), which
prohibits "[a]ny practice which constitutes a means to obtain
a price higher than is permitted by the regulations," can be
used to prevent an exporter from selling oil for export at
market prices if the refined product will be imported back
into the United States. The FEA currently has these issues
under consideration.
fono
GERALD
LIBRARY
- 2 -
(b) Information Requested:
"Did the FEO (or FEA) conduct an investigation into the
matter described above?"
Answer:
Yes. An investigation was conducted in early 1974 of
both NEPCO's pricing and the sale by Citronelle-Mobile
Gathering Corp. ("Citmoco"), a company owned by Mr. Bart
Chamberlain, of crude oil to a Bahamas refinery. More
recently, the FEA has reopened investigations into these
two areas, as well as a limited internal investigation into
the extent to which the Office of Export Administration was
influenced by Senator Sparkman, Governor Carey or others.
(c) Information Requested:
"What conclusions and actions resulted from that inves-
tigation?"
Answer:
The IRS inquiry into Citmoco's transactions reached no
conclusions. Inquiries were made of Mr. Chamberlain in April
1974 that were inconclusive. The matter has been reopened
under the FEA's producer audit program.
The FEO's Region II office turned its audit of NEPCO
over to the United States Attorney for the Southern District
of New York in February or March of 1974. No action has yet
resulted from the U.S. Attorney's investigation, although
it has recently been reopened. The FEA's Region II office
is also conducting a renewed audit of NEPCO's pricing prac-
tices.
As indicated in Mr. Zarb's letter, information obtained
in the FEA's limited internal inquiry has been turned over to
the Department of Justice, which now has full responsibility
for the investigation.
BERALD FORD LIBRARY
- 3 --
(d) Information Requested:
"What FEO (or FEA) employees worked on that investiga-
tion?"
Answer:
At the time of the initial investigation into "E. Chamber-
lain's transactions, the FEO's audits were conducted by the
Internal Revenue Service. Robert F. Gossin of the FEO's
Office of Policy, Planning and Regulation recommended that
an investigation be conducted, and the Director of that
office, Charles Owens, directed that the investigation be
commenced. The actual investigation, which apparently con-
sisted only of an interview of Mr. Chamberlain, was conducted
by a Harry C. Evans of the IRS's Birmingham, Alabama, office.
The NEPCO matter was referred to the U.S. Attorney by
Gerald Turetsky, who was at that time the FEO's Regional
Administrator in New York and is currently the Regional
Administrator for GSA in New York.
The employees principally involved in the FEA's recent
internal inquiry were Gorman C. Smith, Assistant Administra-
tor for Regulatory Programs; John Vernon, Deputy Assistant
Administrator for Regulatory Programs; and Thomas Hinkel,
Office of Regulatory Programs.
(c) Information Requested:
"What persons outside the FEO contacted FEO officials
with the purpose or effect of discouraging further inquiry
into this matter?"
Answer:
To our knowledge, no person outside the FEO contacted
FEO officials with the purpose or effect of discouraging
further inquiry into either Citmoco or NEPCO or of influ-
encing the granting of an export license to Citmoco. Similarly,
no person outside the FEA has contacted it with the purpose
or effect of discouraging the FEA's recent inquiries.
is
FORD
GERALD
LIBRARY
JOHN E. MODE, CALIF., CHAIRMAN
ROOM 2323
RICHARD : OTTER JOURY.
JAMES M. COLLINS. TIX.
RAYBERN HOUSE OFFICE BUILDING
HOMERT CLR, TEX.
NORMAN F. LINT. U.Y.
PHONE (202) 225-4441
ANTHONY TODY MO! FLTT. CONN.-
LDWARD R. MADIGAN, ILL,
JIM SANTING NEV.
MATTHEW 1. MINALDO, N.J.
W. 5. (JLL) STUCKEY. GA.
SAMUEL L. DEVINE. OHIO
MICHAEL R. LEMOV
(EX OFFICIO)
CONGRESS OF THE UNITED STATES
JAMES P. N.Y.
CHICF COUNSEL
HENRY A. WAXMAN, CALIF,
PHILIP H. SHARP, IND.
HOUSE OF REPRESENTATIVES
J. THOMAS GREENE
ANDREW MAGUIRE, N.J.
COUNSEL TO THE CHAIRMAN
HARLEY O. STAGGERS, W. VA.
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS
(EX OFFICIO)
OF THE
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE
WASHINGTON, D.C. 20515
July 14, 1975
Honorable Frank G. Zarb
Administrator
Federal Energy Administration
Washington, D. C. 20461
Dear Mr. Zarb:
I have received your letter of July 10, 1975, in response to
my request for documents in the matter involving the granting of
export oil licenses to Mr. Bart Chamberlain and am deeply concerned
about the position you have chosen to take.
As you are aware, the Subcommittee on Oversight and Investi-
gations of the House Committee on Interstate and Foreign Commerce
under the mandates of Rule X of the House of Representatives has
the oversight responsibility for the activities of your agency.
In order to comply with this we need your full cooperation which
has not been received on my request of June 23, 1975.
In order to avoid any misunderstanding concerning the scope
of this request you are advised that the Subcommittee must be
furnished any and all documents relating in any way to the appli-
cation for and subsequent granting of export licenses to Citmoco,
Inc. and any investigations relating thereto in the possession of
the Federal Energy Administration. These should include but not
be limited to memoranda, correspondence, tapes, notes of personal
or telephonic contacts and investigative reports.
Be assured that all of the information advanced by you has
been carefully considered. Notwithstanding your desires on this
matter, I assure you this Subcommittee must now have the documents
requested and will expect your full cosperation ensuring that the
documents are received by us without any further delay.
Signerely,
John E. Moss
Chairman
Subcommittee on
Oversight and Investigations
JEM:amw
BY HAND
18 JUL 1975
Honorable John E. Moss
Chairman, Subcommittee on Oversight
and Investigations
Committee on Interstate & Foreign Commerce
House of Representatives
Washington, D.C. 20515
Dear Mr. Chairman:
This is in response to your letter of July 14, 1975 regarding
the Citmoco export license matter.
My letter to you of July 10, 1975 noted that the Department
of Justice requested an opportunity to review those documents
that we provided to it in connection with the Citmoco export
license matter before we made such documents available to
your Subcommittee. In view of the fact that such documents
bore directly on the Department's ongoing investigation into
this matter and that the investigation could conceivably
result in criminal prosecutions, I granted the request. I
assure you, however, that I did so reluctantly, in view of
the personal commitment M have expressed to you on several
occasions that we will also cooperate to the fullest extent
possible with your Subcommittee.
Upon receipt of your letter of July 14, 1975, we contacted
the Department of Justice to request again that it complete
its review of the documents as promotly as possible. The
Department at that time expressly instructed us not to re-
lease the documents to you, but instead requested that we
ask your staff counsel contact one of the two attorneys in
the office of the United States Attorney for the Southern
District of New York directly responsible for the investi-
gation. They are Rudolph W. Giuliani, Executive Assistant
U.S. Attorney, telephone (212) 791-0060, and Mr. Jeffrey
Harris, Assistant U.S. Attorney, telephone (212) 791-0073.
They have indicated a willingness to discuss with your staff
the release of the documents under terms that would not
result in prejudice to future litigation.
OGC
DGRobinson:1b:rm5120:x8301
FORD is LIBRARY GERALD
7/18/75
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I hope you will appreciate the difficult position into which
we have been placed because of our desire to cooperate fully
with both your Subcommittee's and the Department of Justice's
investigations. Please let me know if there is anything
further I can do to help resolve this mattor.
Sincerely,
Frank G. Zarb
Administrator
bcc: Signer/Exec. Comm. (2)
Cong. Affairs
D. Robinson
FORD is QERALD LIBRARY
TAB
C
or
LEVI MAY BLOCK
said the
Joseph A.
de
The cas
CAREY OIL PAPERS
al export ]
the oil cri
early 1974
Inclined Against Honoring
Chamberla
who
man, sold
last
Governor's Bid for Release
barrels of
pira-
Bahamian
pen-
of oil was
tate-
By MARTIN TOLCHIN
at $5.10 a
Special to The New York Times
sold on ex
i Mr.
WASHINGTON, July 24-At-
of $13.51 a
Mr.
dale"
torney General Edward H. Levi
At the
tors.
indicated today that he was
interventio
THE WHITE HOUSE
WASHINGTON
Pass on to Ken Lazarus
for his handling.
P.
CORD
THE WHITE HOUSE
WASHINGTON
June 28, 1975
MEMORANDUM FOR:
PHILIP BUCHEN
FROM:
RODERICK HILLS
RH
Do you believe we should have somebody on our staff
(Lazarus) see what the FEA is doing about the attached
matter? You may have seen the news report which
complains that the FEA was investigating itself.
your
LIBRARY
Aven
OIL CALLS LINKED
TO CAREY'S OFFICE
Ex-U.S. Aide Cites Repeated
Efforts for Deal Involving
the Governor's Brother
By MARTIN TOLCHIN
Special to The New York Times
WASHINGTON, June 25 -
The Federal Energy Adminis-
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION
Presidential Libraries Withdrawal Sheet
WITHDRAWAL ID 01458
REASON FOR WITHDRAWAL
Donor restriction
TYPE OF MATERIAL
Memo (s)
CREATOR'S NAME
Buchen, Philip
RECEIVER'S NAME
Connor, James
DESCRIPTION
O.C. Carmichael and HEW. With
attachments.
CREATION DATE
04/23/1975
COLLECTION/SERIES/FOLDER ID
001900423
COLLECTION TITLE
Philip W. Buchen Files
BOX NUMBER
37
FOLDER TITLE
Personnel - Conflict of Interest, A-G
DATE WITHDRAWN
08/24/1988
WITHDRAWING ARCHIVIST
LET
THE WHITE HOUSE
1/10/75
TO:
Phil Buchen
FROM: Bill Casselman
Noted
Information
XXX
Action:
As appropriate
See me
Prepare reply
Concur and return
Children
David
JAN 10 1975
MEMORANDUM FOR THE HONORABLE WILLIAM E. CASSELMAN II
Counsel to the President
Re: Possible Conflict of Interest Problems -- the
Appointment of David W. Childs as Chairman of the
National Capital Planning Commission
This responds to your memorandum of December 14 requesting
our assistance concerning the conflict of interest aspects in-
volved in Mr. Childs' proposed appointment as Chairman of the
National Capital Planning Commission (NCPC).
The Commission, composed of 13 members, is the statutory
central planning agency for the Federal and District Govern-
ments in the National Capital. 40 U.S.C. 71a(a). It appears
to be an executive branch agency. of the members, eight are
designated individuals holding Government office, serving ex
officio.* 40 U.S.C. 71a(b) (1). There are five public members
appointed by the President. 40 U.S.C. 71a(b)(2). The Chairman
of the Commission, designated by the President, receives no
compensation as such but is paid a per diem in lieu of sub-
sistence and is entitled to travel reimbursement. 40 U.S.C.
(a) (b) (2). Presumably, the Chairman will serve fewer than
130 days during any period of 365 consecutive days. Accord-
ingly, he would be a special Government employee as defined
by 18 U.S.C. 202(a) of the conflict of interest statute.
Mr. Childs is associated as a partner with Skidmore,
Owings and Merrill, a firm engaged in architectural engineering
and urban design work in Washington, D.C. The firm has a
limited number of Federal contracts described in Mr. Childs'
letter of November 16, 1974, to Mr. Buckels, attached to your
memorandum. He states that where a Commissioner is "involved"
(presumably in a financial way) with a project before the NCPC,
he "steps aside from that particular decision," and he is pre-
pared to "follow that practice when necessary."
Clearly, Mr. Childs' association with Skidmore, Owings
and Merrill does not constitute a legal bar to his appointment
#/ Some of the ex officio members are Members of Congress."
GERALD
LIBRARY
as Chairman of NCPC. Indeed, the Act establishing the Com-
mission contemplates that its public members shall be eminent
citizens "well qualified and experienced in city or regional
planning." 40 U.S.C. 71a(b) (2). There are two provisions
of the conflict of interest statute that may come into
play-sections 208(a) and 207 (c).
1. Section 208(a).
Section 208(a) prohibite an officer or employee of the
executive branch, including a special Government employee,
from participating "personally and substantially as a Govern-
ment officer or employee" in particular matters in which he
or an organization in which he is a partner has a financial
interest.
Section 208(a) would require Mr. Childs to disqualify
himself from participating in any particular NCPC matter in-
volving his firm's financial interest (such as payment for
services, review and approval of work performed by the firm
or its contractors on a contract, etc.). Apparently Mr. Childs
is aware of this requirement.
2. Section 207(c).
Section 207 (c) relates to individuals outside the Govern-
ment who are partners of someone serving in the executive
branch, including a special Government employee. This provi-
sion prohibits the outside partners from acting as attorney
or agent for anyone other than the United States in particular
matters in which their Government partner is participating
or has participated, or which are the subject of the latter's
official responsibility. It would bar Mr. Childs' firm from
acting as an agent for its clients before the NCPC.
In the event that doubtful situations arise in the future
involving Mr. Childs' work with the NCPC, we will be glad to
be of further assistance.
Antonin Scalia
Assistant Attorney General
Office of Legal Counsel
- 2 -
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION
Presidential Libraries Withdrawal Sheet
WITHDRAWAL ID 01459
REASON FOR WITHDRAWAL
Donor restriction
TYPE OF MATERIAL
Memo (s)
CREATOR'S NAME
Chapman, Dudley
RECEIVER'S NAME
Buchen, Philip
DESCRIPTION
Personal financial data. With
attachments.
CREATION DATE
04/23/1975
COLLECTION/SERIES/FOLDER ID
001900423
COLLECTION TITLE
Philip W. Buchen Files
BOX NUMBER
37
FOLDER TITLE
Personnel - Conflict of Interest, A-G
DATE WITHDRAWN
08/24/1988
WITHDRAWING ARCHIVIST
LET
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION
Presidential Libraries Withdrawal Sheet
WITHDRAWAL ID 01460
REASON FOR WITHDRAWAL
Donor restriction
TYPE OF MATERIAL
Memo (s)
CREATOR'S NAME
Buchen, Philip
RECEIVER'S NAME
Marsh, Jack
DESCRIPTION
Charles Collatos and the Selective
Service Appeals Board.
CREATION DATE
12/06/1975
COLLECTION/SERIES/FOLDER ID
001900423
COLLECTION TITLE
Philip W. Buchen Files
BOX NUMBER
37
FOLDER TITLE
Personnel - Conflict of Interest, A-G
DATE WITHDRAWN
08/24/1988
WITHDRAWING ARCHIVIST
LET
THE WHITE HOUSE
WASHINGTON
July 1, 1976
MEMORANDUM FOR:
DOUGLAS BENNETT
FROM:
PHILIP BUCHEN
->
SUBJECT:
Charles Crutchfield to be a
Member, Board of Directors,
Corporation of Public Broad-
casting
We have concluded our review of the Personal Data Statement
made by Mr. Crutchfield. These responses reveal attitudes
and actions on his part which are likely to cause contro-
versy during the confirmaton process. Among them are:
1. A speech he made on August 11, 1972, in Atlanta, Ga.,
which was printed and circulated by the Georgia
Association of Broadcasters. The title of the
speech was "A Commitment to Balanced News" in which
the speaker cited a personal incident where he had
made ad lib comments while meeting with North
Carolina legislators to support retention of State
laws that permitted cities like Charlotte to annex
additional areas. His report of that incident is:
"I commented that 'Blacks are not -- at this
time -- mentally or economically qualified
to run a city the size of Charlotte.' This
was an unfortunate choice of words. I should
not have used the word 'mentally qualified'.
The meaning I was trying to convey was that,
general speaking, blacks do not -- at this
time -- possess the education and experience
necessary to administer a large city."
His point in using this example was that he had been
unfairly treated by the news media for having used an
ill-considered phrase, but the fact that he did use it
will undoubtedly come up in the hearings.
DENAL
LIBRARY
- 2 -
2. Also, in another speech delivered March 26, 1970,
he very much defended the attacks by Spiro Agnew
on the media.
3. Mr. Crutchfield was active in trying to ban non-
communists from speaking at tax-supported colleges
in the State of North Carolina.
4. The proposed nominee also has publicly criticized
the networks for permitting programs to be aired
in which blasphemy was used such as one episode
of the "All in the Family" series.
In the aftermath of the refusal of the Senate to accept
the nomination of Joseph Coors, we are likely to face
efforts by liberal Senators to characterize Mr. Crutch-
field as equally objectionable, and I think it necessary
that you be aware of this likelihood and the types of
evidence which will be available to the Senate Committee.