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Venezuela - President Carlos A. Perez
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1555872
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Venezuela - President Carlos A. Perez
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Presidential Correspondence with Foreign Leaders (Ford Administration)
Presidential Correspondence with Foreign Leaders
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Venezuela
Organization of Petroleum Exporting Countries
Agriculture
Petroleum
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1555872
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1976-11-30
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11
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1976
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1975-04-01
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The original documents are located in Box 5, folder "Venezuela - President Carlos A.
Perez" of the National Security Adviser's Presidential Correspondence with Foreign
Leaders Collection 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 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States of America his copyrights in all of his unpublished writings in National Archives collections.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.
Digitized from Box 5 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library
or STATE
Department of State
of AMERICA UNITED
TELEGRAM
LIMITED OFFICIAL USE 3697
PAGE 01 STATE 093044
47
ORIGIN SS-25
INFO OCT-01 ISO-00 CCO-00 SSO-00 NSCE-00 /026 R
DRAFTED BY ARA:RBBENTLEY:MBB
APPROVED BY ARA:WDROGERS
NSC:SLOW
S/S- MR. ORTIZ
S - DCGOMPERT
008987
Z 231538Z APR 75 ZFF4
FM SECSTATE WASHDC
TO AMEMBASSY CARACAS FLASH
LIMITED OFFICIAL USE STATE 093044
EXDIS
E.O. 11652: DECLASSIFY UPON RELEASE
TAGS: PFOR, VE
SUBJECT: PRESIDENTIAL MESSAGE
FOR THE AMBASSADOR
1. PLEASE DELIVER IMMEDIATELY FOLLOWING MESSAGE FROM THE
PRESIDENT TO PRESIDENT PEREZ. IF RECIPIENT NOT AVAILABLE,
DELIVER TO HIGHEST OFFICIAL AVAILABLE.
2. BEGIN TEXT: DEAR MR. PRESIDENT:
I MADE THE DIFFICULT DECISION TO REQUEST SECRETARY
KISSINGER TO POSTPONE HIS LONG-PLANNED TRIP TO YOUR
COUNTRY WITH GREAT REGRET. THE TRAGIC EVENTS IN INDO-
CHINA WHICH FORCED THIS MOVE ARE FAMILIAR TO YOU. THE
PRESSURE OF EVENTS WAS SUCH THAT I HAD NO CHOICE.
FORD
MR. PRESIDENT, I ATTACH GREAT SIGNIFICANCE TO THE CONTINUED
a
GOOD RELATIONS BETWEEN OUR TWO NATIONS AND IT WAS MY
GERALD
LIBRARY
LIMITED OFFICIAL USE
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY
FORM DS-1652
9.66
a on \
Department of State
of / AMERICA UNITED
TELEGRAM
LIMITED OFFICIAL USE
PAGE 02 STATE 093044
EARNEST DESIRE THAT SECRETARY KISSINGER CARRY MY PERSONAL
ASSURANCES TO YOU OF THIS FACT. I LOOK FORWARD TO MEETING
YOUR FOREIGN MINISTER, RAMON ESCOVAR SALOM, DURING THE
GENERAL ASSEMBLY OF THE ORGANIZATION OF AMERICAN STATES,
NEXT MONTH. IN THE COURSE OF THE GENERAL ASSEMBLY I AM
ALSO CONFIDENT THAT MINISTER ESCOVAR AND SECRETARY
KISSINGER WILL HAVE OPPORTUNITIES TO DISCUSS THE AGENDA
OF HEMISPHERIC AND GLOBAL ISSUES WHICH SHOULD HAVE BEEN
COVERED DURING THE SECRETARY'S VISIT TO CARACAS,
I HAVE ASKED SECRETARY KISSINGER TO GIVE HIGH PRIORITY TO
RESCHEDULING HIS TRIP TO SOUTH AMERICA.
MOST SINCERELY, GERALD R. FORD. END TEXT.
3. WHITE HOUSE DOES NOT PLAN TO RELEASE TEXT BUT HAS
NO OBJECTION IF GOV WISHES TO DO SO. KISSINGER
&
FORD
GERALD
LIMITED OFFICIAL USE
LIBRARY
NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY
FORM
DS-1652
9.66
2A
4122
THE WHITE HOUSE
WASHINGTON
June 16, 1975
Dear Mr. President:
I want to take the opportunity of Secretary Butz' visit
to Venezuela to convey to you my cordial greetings.
Maximizing the benefits from the land has become a
subject of high priority attention in international forums
as the countries of the world seek, individually and
collectively, to meet the requirements of their peoples
today and to plan for the growing needs of the future.
Agriculture is of prime importance to both our countries.
Secretary Butz will be particularly interested in the
opportunity afforded by this visit to exchange views
with you and other officials of your Government on the
directions that agricultural policies will take in each of
our two countries over the next few years.
As our two countries identify and explore areas of
closer collaboration, I am sure that the Secretary's
trip will further that process and contribute to
bettering the areas of knowledge and understanding
of our officials in this important field.
With warm personal regards,
Sincerely,
Gerall R- and
His Excellency
Carlos Andres Perez
President of the Republic of Venezuela
Caracas
4122
2B
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
ACTION
June 16, 1975
MEMORANDUM FOR:
THE PRESIDENT
FROM:
HENRY A. KISSINGER
SUBJECT:
Letter for Secretary Butz to carry
to Venezuelan President Perez
Secretary Butz will be visiting Venezuela June 17 - 20 and will be
seeing President Andres Perez. It would be helpful for him to have
a letter to deliver from you to the Venezuelan President.
Attached at Tab A is a suggested letter for Secretary Butz which
draws attention to the importance of agriculture in U.S. -Venezuelan
cooperation. The office of Paul Theis has cleared the text of the
proposed letter.
RECOMMENDATION
That you sign the letter to President Andres Perez at Tab A.
4122
-
NATIONAL SECURITY COUNCIL
6-16-75
To:
Bud McFarlane
General Scowcroft
This needs prompt attention since
Secretary Butz is due to leave early
Tuesday morning.
She
4122
MEMORANDUM
NATIONAL SECURITY COUNCIL
ACTION
June 16, 1975
MEMORANDUM FOR:
SECRETARY KISSINGER
FROM:
STEPHEN LOW
SUBJECT:
Letter for Secretary Butz to carry
to Venezuelan President Perez
Attached at Tab I is a memorandum to the President transmitting a
suggested letter which Secretary Butz could present to President Andres
Perez of Venezuela when he sees him in Caracas during his visit,
June 17 - 20.
The letter is a general one emphasizing the importance of agriculture
in U.S. -Venezuelan relations. The office of Paul Theis has cleared the
text of the proposed letter.
RECOMMENDATION
That you initial the attached memorandum to the President.
DOC
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CODEWORD
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INTERNAL ROUTING AND DISTRIBUTION
REC
ACTION REQUIRED
ACTION
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SUB-SAHARAN AFRICA
APPROPRIATE ACTION
MID EAST / NO.,AFRICA / so. ASIA
MEMO
TO
EUROPE / CANADA
RECOMMENDATIONS
LATIN AMERICA
x
JOINT MEMO
UNITED NATIONS
REFER TO
FOR:
ECONOMIC
ANY ACTION NECESSARY?
SCIENTIFIC
CONCURRENCE.
PROGRAM ANALYSIS
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CONGRESSIONAL
OCEANS POLICY
INTELLIGENCE
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FROM
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6/16
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CY RQMTS: SEE ABOVE
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& DATE
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1975
BY
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OPEN
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INNO.74.211
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6498
3
CONFIDENTIAL
DEPARTMENT OF STATE
7519073
Washington, D.C. 20520
September 26, 1975
MEMORANDUM FOR LIEUTENANT GENERAL BRENT SCOWCROFT
THE WHITE HOUSE
Subject: Response to Letter on OPEC Pricing
Policy Sent to Venezuelan
President Perez
President Carlos Andres Perez of Venezuela has sent
the attached response to President Ford's letter of
September 9, 1975. Perez reiterated his country's sup-
port for an OPEC price increase, but expressed a
positive view toward our efforts to resume the producer-
consumer conference.
Specifically, Perez was pleased with the President's
concern for developing-industrialized country relations
and agreed that international economic problems require
a universal approach and that we can progress at the
October preparatory meeting. Perez recognized our efforts
to achieve United States participation in this dialogue.
Regarding OPEC pricing, he does not believe that a
reasonable adjustment would impede the fight against in-
flation and recession, observing that Venezuela's
responsible and moderating position in OPEC will continue.
Perez referred to the difficulty in dealing with U.S.
public opinion, saying that he has no less problem in his
country in explaining, for example, the constant fall in
the real price of Venezuela's petroleum exports, but he
concluded that the important thing here was rationality.
He ended emphasizing Venezuela's sincere desire to con-
solidate bilateral ties.
We believe no further communication is required at
this time.
Ein George D. S. Springsteen
Executive Secretary
Attachment:
Letter from President Perez,
with translation.
CONFIDENTIAL
GDS
Wh 3/10/04
DEPARTMENT OF STATE
DIVISION OF LANGUAGE SERVICES
(TRANSLATION)
LS NO. 51717 - B
EMBASSY OF VENEZUELA
Washington, D.C.
Miraflores, September 23, 1975
Dear Mr. President:
It is a special pleasure for me to reply to your letter of September
9, delivered to the Minister of Foreign Affairs by your Ambassador in
Venezuela, since in it you emphasize your Government's concern regarding
the economic relations between the industrialized and developing countries,
a subject to which my Government attributes the greatest importance, with
a view to the creation of a new international economic order within the
framework indicated by the United Nations.
Like you, I think that attempts to resolve international economic
problems cannot and must not be made unilaterally by one country or group
of countries, regardless of their degree of development or of the weight
they carry within the structure of the world economy. We have always
favored a truly broad and open dialogue for reforming the unjust struc-
ture of the present international economic system, in order to see to it
once and for all that the policies followed by the different governments
permit balanced growth of the world economy and so that inflation and
His Excellency
Gerald Ford,
President of the
United States of America,
Washington, D.C.
2
recession do not affect Third World countries or the well-being of the
industrialized countries, and so that this well-being is not obtained
at the cost of our countries' development possibilities, as has been
the case up to the present.
The sovereigns and heads of State of the member countries of OPEC
stated as much in the Declaration of Algiers. And we accepted with
pleasure the invitation of the President of France to participate in a
broad dialogue which is to cover the whole range of problems dividing
the developing and developed nations, including the energy issue.
I was not discouraged by the rather unpromising results obtained at the
April meeting. It was important for both groups of countries to under-
stand the need for dialogue. As you state optimistically in your letter,
I too am confident that during the October meetings we will be able to
advance steadily toward a goal which is as just as it is desired and
necessary for understanding among nations and for world peace itself.
I am pleased to acknowledge the efforts put forth by you and by
Secretary Kissinger to overcome the original obstacles, thus enabling
the United States to participate in an open frame of mind in that dialogue,
the aim of which cannot be confrontation between groups of countries, but
rather the achievement of a re-organization of the world economy, resting
on bases which must be solid, and, above all, just and equitable, such
that the framework defining the rights and duties of all countries is
interdependence and not dependence in a disguised and perverted form.
I do not wish to dwell on problems which our countries' representatives
must analyze and discuss in Paris in October in order to establish the new
bases of the world economy, replacing the decayed supports that have been
3
sustaining it since the days of the Havana Charter and the Breton Woods
Agreements. Convinced as we are of the need for dialogue, I agree with
you that we must spare no effort in the hard work required for the nego-
tiation and in convincing both our democratic peoples of the need for
this very fundamental initiative.
It is fair to recognize that the OPEC nations have taken effective
measures to cooperate in world economic recovery through their trade,
investment, and financial aid policies.
With regard to oil prices, Venezuela maintains the position that the
levels set by OPEC are in keeping with the value of this major, nonrenew-
able raw material. Despite the fact that the inflation generated in the
industrialized countries has been constantly eating away at the purchasing
power of our revenues, oil prices have been frozen since January 1975 in
order to aid the governments of the industrialized nations in taking the
necessary corrective measures to restrain and control the inflationary
process. Nevertheless, we have observed how OPEC has been unjustly blamed
for all the ills affecting the international economy. In our view, the
economic and monetary policies of the industrialized countries have been
and continue to be the major factor in the problems confronting those
economies.
You mention, Mr. President, the negative impact which a new increase
in oil prices would have on the world economy. We do not believe that a
reasonable adjustment of those prices, aimed at protecting their pur-
chasing power, would hinder or impede progress in the fight against infla-
tion and recession.
4
With respect to Venezuela's position in OPEC, I can assure you that,
aware as we are of our responsibility in the international community and
of the economic interdependence of nations, that position will continue
to be a responsible and a moderating one.
I understand that the task of consulting and convincing United States
public opinion is difficult for you and your Government. It is no easier
for me to have to explain to a democratic public opinion the increase in
cost of the manufacturedor capital goods we import, the unjust conditions
imposed on us for the transfer of technology, the steady drop in the real
prices of our oil exports and, in general, manipulation of raw materialprices
without taking into consideration the needs of the developing countries
and their right to base their plans on stable and dependable economic
foundations. However, experience in debate and in the political contests
in a democracy has taught us that what is important is the restraint and
rationality exercised by opposing interests and the effort that is put into
reconciling them equitably.
Now that we are on the road to a constructive dialogue, I believe that
there must be no decisions or factors which will delay progress in under-
standing. This is the spirit that guides Venezuela in its defense of legi-
timate interests and in the search for new structures for achieving a truly
interdependent world economy, which will expand to the benefit of all.
Lastly, Mr. President, on behalf of the Government and people of
Venezuela, I wish to confirm our sincere desire for the strengthening and
consolidation of the ties of friendship and cooperation which have existed
between our two countries. You may be sure that I will spare no effort to
help make bilateral relations between the United States and Venezuela, as
5
well as those falling within the Latin American political context, both
closer and more all-embracing, and to cooperate in the solution of world
problems of mutual interest.
Sincerely yours,
Carlos Andrés Pérez
President of Venezuela
EMBAJADA DE VENEZUELA
WASHINGTON, D.C.
Miraflores, 23 de septiembre de 1975
Excelentísimo Señor
Gerald Ford
Presidente de los Estados Unidos
de América
Washington, D.C.
Estimado Señor Presidente:
Contestar su carta del 9 de septiembre, que entregó al
Ministro de Relaciones Exteriores su Embajador en Venezuela,
me resulta especialmente grato por cuanto en ella pone usted
de relieve la preocupación de su Gobierno por las relaciones
económicas entre los países industrializados y los países en
vías de desarrollo, asunto al cual mi Gobierno otorga la ma-
yor importancia para la creación de un nuevo orden económico
internacional dentro del marco señalado por las Naciones
Unidas.
Pienso como usted que los problemas de la economía inter-
nacional no pueden ni deben tratar de resolverse en forma uni-
lateral por un país o grupo de países, sea cual fuere su grado
de desarrollo o la importancia que él o éllos tengan dentro de
la estructura de la economía mundial. Siempre hemos sido par-
tidarios de un diálogo verdaderamente amplio y sincero para re-
formar la estructura injusta del actual sistema económico inter-
nacional, a fin de asegurar de una vez por todas que las políti-
cas que sigan los diferentes gobiernos permitan un crecimiento
equilibrado de la economía mundial, sin que la inflación o la
recesión afecten a los países del tercer mundo o el bienestar
2
de los países industrializados, ni que éste se obtenga a
costa de las posibilidades de desarrollo de nuestros países,
como ha venido sucediendo hasta el presente.
Así lo hicimos constar en la Declaración Solemne de
Argel los Soberanos y Jefes de Estado de los países miembros
de la OPEP. Y aceptamos con beneplácito la invitación del
Presidente de Francia para participar en amplio diálogo que
abarcará todo el conjunto de problemas que dividen al mundo
en desarrollo y al desarrollado, incluyendo el tema energé-
tico. No me desalentó el resultado poco promisorio obtenido
en la reunión de abril. Fue importante que ambos grupos de
países comprendiéramos la necesidad de dialogar. Tengo con-
fianza en que durante las reuniones de octubre, como usted
lo dice optimistamente en su carta, podamos avanzar con fir-
meza hacia una meta tan justa como deseada y necesaria, para
el entendimiento entre los países y la propia paz mundial.
Me complace reconocer los esfuerzos realizados por usted
y el Secretario Kissinger para superar los obstáculos origina-
les y así lograr que Estados Unidos participen con ánimo sin-
cero en ese diálogo, cuyo fin no puede ser el de una confron-
tación entre grupos de países, sino el de alcanzar una nueva
organización de la economía mundial, estructurada sobre bases
sólidas y sobre todo justas, equitativas, donde la interdepen-
dencia brinde un marco de deber y de derecho a todos los paí-
ses y no sea una disimulada y aviesa fórmula de dependencia.
No deseo abundar sobre problemas que los representantes
de nuestros países deberán analizar y debatir en París en oc-
tubre para sentar las nuevas bases de la economía mundial y
sustituír los pilares carcomidos que la vienen sosteniendo
desde los tiempos de la Carta de La Habana y los Acuerdos de
3
Breton Woods. Convencidos como estamos de la necesidad
del diálogo, considero como usted que no debemos escati-
mar esfuerzos en la diligencia necesaria para la negocia-
ción y para convencer a nuestros dos pueblos que viven la
democracia sobre la necesidad de iniciativa tan fundamen-
tal.
Es justo reconocer que los países de la OPEP han toma-
do acciones efectivas para colaborar en la recuperación de
la economía mundial mediante sus políticas de intercambio
comercial, inversiones y ayuda financiera.
En relación a los precios del petróleo Venezuela susten-
ta la posición de que los niveles fijados por la OPEP se co-
rresponden con el valor de esa importante materia prima no
renovable. A pesar de que la inflación generada en los paí-
ses industrializados ha venido deteriorando constantemente el
poder adquisitivo de nuestros ingresos, desde el mes de enero
de 1975 se han mantenido congelados los precios del petróleo
con el propósito de facilitar que los gobiernos de las nacio-
nes industrializadas tomaran las medidas y los correctivos ne-
cesarios para detener y controlar el proceso inflacionario.
Sin embargo, hemos observado como la OPEP ha sido culpada in-
justamente de todos los males que afectan a la economía in-
ternacional. En nuestro concepto, las políticas económicas y
monetarias de los países industrializados han sido y conti-
núan siendo el factor principal de los problemas que confron-
tan esas economías.
Usted menciona, Señor Presidente, el impacto negativo que
tendría en la economía mundial un nuevo aumento en los precios
del petróleo. No creemos que un ajuste razonable en esos pre-
4 -
cios, que tenga por objeto proteger su poder adquisitivo,
obstaculice O impida el progreso en la lucha contra la in-
flación y la recesión.
En lo que se refiere a la posición de Venezuela dentro
de la OPEP, puedo manifestarle que conscientes de nuestra
responsabilidad dentro de la comunidad internacional y de la
interdependencia económica que existe entre las naciones, esa
posición seguirá siendo responsable y moderadora.
Comprendo que la tarea de consultar y convencer a la
opinión pública norteamericana resulte difícil para usted y
para su Gobierno. Para mi no lo es menos tener que explicar
a una opinión pública democrática las alzas de las manufactu-
ras O bienes de capital que importamos, las injustas condicio-
nes para la transferencia de tecnologías que se nos imponen,
la constante caída de los precios reales de nuestras expor-
taciones de petróleo, y, en general, las manipulaciones con
los precios de las materias primas sin tomar en consideración
las necesidades de los países en desarrollo y su derecho a
formular sobre bases económicas estables y confiables sus
planes. Sin embargo, la experiencia en el debate y la lucha
política dentro de una democracia nos ha enseñado que lo im-
portante es la mesura y la racionalidad con que se contrapongan
los intereses y la diligencia con que se esté dispuesto a con-
ciliarlos con equidad.
Ya en marcha hacia el diálogo con espíritu constructivo,
considero que no puede haber decisiones ni factores que provo-
quen retrasos en la buena marcha del entendimiento. Este es
el espíritu que anima a Venezuela en la defensa de legítimos
intereses y en la búsqueda de nuevas estructuras para hacer
- 5 -
realidad una economía mundial verdaderamente interdepen-
diente, que se expanda en provecho de todos.
Por último, Señor Presidente, ratifícole en nombre del
Gobierno y Pueblo de Venezuela nuestro sincero deseo porque
se fortalezcan y consoliden los nexos de amistad y coopera-
ción que han existido entre nuestros países. Puede tener la
seguridad de que no escatimaré esfuerzos para contribuír a
que se hagan más estrechas y comprensivas las relaciones bi-
laterales entre los Estados Unidos y Venezuela, así como den-
tro del contexto de la política latinoamericana, y para coo-
perar a la solución de problemas mundiales de interés mutuo.
Atentamente,
Carlos Andrés Pérez
Presidente de Venezuela
3E
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SPECIAL INSTRUCTIONS)
CONGRESSIONAL
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( NSC 575-600 75-22 )
THE WHITE HOUSE
WASHINGTON
SECRET
November 9, 1976
Dear Mr. President:
The decision last May of the Organization of Petroleum
Exporting Countries not to increase the price of
oil was a responsible action which has contributed
to the process of global economic recovery. In the
spirit of our countries' close relationship, however,
I wish to bring to your attention my deep concern
about reports that Venezuela may seek an increase
in the price of oil at the December OPEC meeting,
and to urge you to bring your country's considerable
influence to bear instead to oppose an increase,
which would have harmful effects on world inflation
and recovery, the plight of the developing countries,
and international economic cooperation.
The oil exporting countries have already made substan-
tial gains in purchasing power as a result of economic
recovery and greater demand for oil in the oil-importing
countries. OPEC nations will earn $125 billion this
year from their oil exports, about 20 percent more
than in 1975, and more than 400 percent above what
they earned in 1973 on a similar volume of oil exports.
In this regard, I understand that the marketing diffi-
culties confronted by Venezuela earlier this year
have eased, at least in part because of the modifica-
tions made by my Government in our domestic oil entitle-
ments program. It is unfortunate that Venezuela
appears to have responded to this strengthened market
position by implementing a unilateral price increase,
during a period in which OPEC had decided not to
increase the prices.
A further oil price increase would generate inflationary
pressures which are not in any nation's interest.
Currently the industrialized countries are making
DECLARSIFIED
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SECRET
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES
BY wa
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SECRET
- 2 -
dramatic progress in controlling inflation through major
policy. actions, with the average rate of inflation for
major countries falling to half its 1974 rate. Our
analysis of the composition of exports from the major
industrialized countries to the oil producers indicates
that the prices of these goods have risen only by 30
percent since mid-1973, and by only 4 percent over the
past year. Prices of our largest export --- grain -- have
actually fallen by $50 a ton in the last year. But the
industrialized countries alone cannot solve the problem
of inflation. Oil-producing countries too have a respon-
sibility to control world inflation.
I am also concerned that an increase in the price of oil
could undermine the fragile economic recovery and the
already weak balance of payments situation in both developing
and industrialized countries. The oil bill of the oil-
importing developing countries has quadrupled from $2
billion in 1973 to $13 billion this year. Some of these
developing countries are just beginning to regain a more
satisfactory rate of growth and to reduce their trade
deficits as demand for their exports has increased and they
have begun to adjust to the burden of higher oil prices.
Many of the poorer developing countries, however, continue
to experience desperate balance of payments difficulties
and, as a result, wholly unsatisfactory prospects for
economic growth. Among the industrialized countries,
there are several which have not yet begun to recover from
the severe economic recession of 1974-1975 and continue to
experience large balance of payments deficits; a number
have virtually exhausted their ability to borrow. Even in
the United States, where recent economic activity has been
more vigorous, the recovery has slowed. My deep concern,
therefore, is that the possibility of truly global economic
recovery which we are seeing will be threatened by the
slowdown in growth and the adverse inflationary and balance
of payments effects of a new increase in the price of oil.
All countries have a vital interest in the maintenance and
strengthening of the global recovery and the increase in
international trade which will accompany it.
Finally, I am concerned that a new increase in oil prices
could prejudice the creative and constructive process of
dialogue among developed and developing countries to which
your government and you yourself have made a major contri-
bution. I am also committed to that process. I have taken
a number of decisions to ensure a positive United States
SEGRET
SECRET
- 3 -
approach to the problems of the developing world. This
year the United States will provide more funds for
economic assistance than in any year since our post-war
Marshall Plan, more aid than any other country in the world.
I also have committed my Government to give serious con-
sideration to a number of other new approaches to the
problems of the developing countries. I am working to
maintain support for constructive policies toward the
developing world. I believe that further progress in a
number of areas of the North-South relationship, including
the official development assistance made available to the
developing world, should be possible in the coming months.
In particular, I am optimistic that the Conference on
International Economic Cooperation, which is scheduled to
meet at the ministerial level in mid-December, can achieve
positive and concrete results beneficial to developed and
developing countries. But the international structure
which both you and I wish to build must be based on due
regard for the impact of individual national decisions on
the rest of the world. Actions which appear to overlook
this impact seriously undermine domestic support in this
country for a constructive approach to the problems of the
developing world.
I hope, therefore, that when you have given full consider-
ation to all the implications of the oil price question,
the significant influence of Venezuela and your personal
stature and international leadership will contribute to a
decision by the oil-exporting countries as responsible as
that of May and that there will be no new price increase.
Sincerely,
Herall R. Fnl
His Excellency
Carlos Andres Perez
President of the
Republic of Venezuela
Caracas
SECRET
DARA/AND/V
2)HWS
11/29
REPUBLICA DE VENEZUELA
DESPACHO DEL PRESIDENTE
Miraflores, 20 de noviembre de 1976.
Señor
Gerald Ford
Presidente de los Estados Unidos
Washington
Apreciado señor Presidente:
Su comunicación de fecha 9 de noviembre, en la cual
plantea importantes aspectos sobre la situación económica mun
dial y los precios del petróleo, ha sido objeto de un deteni-
do estudio por mi gobierno. Algunos de los conceptos por us-
ted emitidos me mueven a hacer las consideraciones que siguen.
Comparto con usted el criterio en cuanto a que la
amistad entre nuestros pueblos nos obliga a considerar muy es
pecialmente cualquier asunto que pueda afectarnos recíproca
mente. En este orden de ideas, expresa preocupación por los
informes de que Venezuela procurará un aumento en el precio
del petróleo en la reunión de la OPEP en el mes de diciembre.
Pide nuestro apoyo para que, en lugar de que sea aumentado ese
precio, nuestro país ejerza influencia para mantenerlo en los
niveles actuales por los efectos nocivos de un alza sobre la
inflación y recuperación mundiales.
No es justo persistir en atribuir a la Organización
de Países Exportadores de Petróleo los problemas que confronta
la economía mundial, específicamente la inflación. Este es un
tema que ha sido ampliamente debatido y se ha comprobado que
ese aserto no se corresponde con la realidad de la economía
mundial. La decisión tomada por la Organización de Países
Exportadores de Petróleo en mayo pasado, de no incrementar los
precios del petróleo, no fue tan sólo, como usted lo señala,
una acción responsable por parte de la OPEP, sino también ex
presión de una conducta que puede calificarse como de notable
REPUBLICA DE VENEZUELA
DESPACHO DEL PRESIDENTE
-2-
demostración de la amplitud para el diálogo y de los propó-
sitos sinceros que animan a los países exportadores de pe--
tróleo, en el sentido de contribuir en todo cuanto sea posi-
ble al entendimiento sincero y justo, entre los países desa-
rrollados y los países en desarrollo. Como sería fácil de-
mostrarlo, para ese momento ya se daban las condiciones y
razones suficientes que hubieran justificado un aumento de
los precios.
La confianza que tenemos puesta en los resultados
del diálogo Norte-Sur, nos llevó entonces a la consideración
de aplazar un nuevo aumento, sin apegarnos específicamente a
los indicadores económicos que señalaban como se había roto
de nuevo el equilibrio entre los precios del petróleo y los
precios de las manufacturas que importamos de su país y de
las demás naciones industrializadas.
Cuando usted se refiere a las ganancias de los paí-
ses exportadores de petróleo no relaciona en forma alguna esas
cifras con el deterioro secular de las condiciones del comer-
cio exterior para los países en desarrollo.
Venezuela no tiene ninguna queja que presentar en
cuanto a la conducta del mercado de los Estados Unidos para
nuestro petróleo. Ni siquiera quiero referirme a la injusta
disposición de la Ley de Comercio, orientada en arcaicos y
pugnaces criterios de represalia, que en todo caso no se co-
rresponden con la conducta amistosa de Venezuela. Pero debo
observar que si bien Estados Unidos ha hecho esfuerzos para
mantener una situación normal en la oferta y la demanda, Ve-
nezuela también los ha hecho como país petrolero que está cum-
pliendo seriamente con sus compromisos.
Es importante que cuando tratemos de considerar el
problema de los precios seamos sinceros en entender que el
precio del petróleo es sólo un factor dentro del conjunto de
precios de las mercancías que se intercambian en los mercados
internacionales. Si a estas razones atendemos, podremos de-
terminar que la ponderación de los precios petroleros en ese
conjunto no es predominante. Las exportaciones de los países
desarrollados tienen mayor importancia.
REPUBLICA DE VENEZUELA
DESPACHO DEL PRESIDENTE
-3-
No es justo, señor Presidente, su planteamiento en
cuanto a que Venezuela no ha respondido debidamente a la posi
ción considerada de su país frente a nuestro petróleo, proce-
diendo a ejecutar un aumento unilateral de precios durante el
período en el cual la OPEP decidió no aumentarlo. Nuestra
conducta ha sido de estricto apego a las decisiones de la OPEP.
Se hizo en efecto un ajuste de los precios de algunos crudos y
productos. En algunos casos esos ajustes consistieron en una
disminución de precios, de acuerdo con el comportamiento del-
mercado y las decisiones tomadas por la OPEP. Así han proce-
dido los otros miembros de la Organización.
Comparto con usted el criterio de que los países in
dustrializados por sí solos no podrán resolver el problema de
la inflación. Igualmente que los países productores de petró-
leo tenemos responsabilidad en el control de la inflación mun
dial. Pero las responsabilidades adquieren una dimensión muy
diferente cuando examinamos, con sincero deseo de buscar la
verdad, la relación existente entre el valor de las exporta
ciones de los países en desarrollo, incluyendo a los países de
la OPEP, que sólo alcanza a un 25% del valor total del comer-
cio mundial, frente al 75% de ese valor que representa el co-
mercio de exportación de los países desarrollados. Precisa
mente aquí es donde se encuentra el desentendimiento, por
cuanto existe en los países desarrollados, entre ellos los Es-
tados Unidos, una actitud de desconsideración e incomprensión
para la situación que confrontamos los países en desarrollo.
Cuando usted se refiere al precio de los granos, que
en fin de cuentas no representan, a pesar de su volumen, una
circunstancia importante en la economía y en la balanza comer-
cial de los Estados Unidos, en cambio para los países en desa-
rrollo si se corresponde esta situación de los precios agríco-
las con un desajuste fundamental de sus economías. Y en la ac
tualidad esos precios, con excepción de muy pocos productos, se
encuentran en franco deterioro causando graves daños a las eco-
nomías de la mayor parte de los países en desarrollo. Y ese de
terioro es provocado por las manipulaciones que se operan desde
los países que controlan la economía mundial.
REPUBLICA DE VENEZUELA
DESPACHO DEL PRESIDENTE
-4-
El impacto negativo que usted atribuye a un aumen
to en los precios del petróleo no lo ponemos en duda. Esta -
contínua escalada en los precios de los productos energéticos
es tan nefasta al desarrollo de la economía mundial como el
creciente aumento del valor de los bienes de capital y otras
manufacturas que importan nuestros países de las naciones in-
dustrializadas, y los costos de la transferencia de tecnolo
gías. Se trata entonces, más que de obligarnos a los países
en desarrollo a ser quienes paguemos con nuestro trabajo y con
nuestras materias primas al bienestar de las naciones indus
trializadas de hacer un sincero esfuerzo por establecer esa
equivalencia y ese equilibrio que estimamos debe provocarse -
mediante la creación de un nuevo orden económico internacional.
Los : aumentos en los precios del petróleo que patro-
cina la OPEP, y no específicamente Venezuela, sólo tratan de
proteger su poder adquisitivo y esta posición no puede de nin
guna manera ser la responsable de la inflación sino que por el
contrario es una consecuencia de ella. No hago una afirmación
temeraria cuando reitero que el proceso inflacionario y la mis
ma recesión económica sufrida en los últimos años, son conse
cuencias de las políticas fiscales y monetarias que se han man
tenido por los países industrializados. No puede negarse que
en los dos últimos años, como usted mismo lo reconoce, los a
justes de los precios del petróleo han sido a una tasa menor
de la que se justificaría para mantener el valor unitario de
nuestros términos de intercambio.
No se escapa a nuestra preocupación la situación que
confrontan los países en desarrollo importadores de petróleo,
tanto más comprometida cuanto que continúa el deterioro en los
precios de las materias y productos básicos que exportan. A la
par que siguen en permanente crecimiento los precios de los
bienes de capital y otras manufacturas que requieren importar
para su desarrollo. Sin embargo los países de la OPEP han tomado
acciones efectivas para colaborar con los demás países del Tercer
Mundo, mediante políticas de inversiones y ayuda financiera.
En tal sentido la asistencia económica de la OPEP se ha venido
realizando de forma individual y colectiva. El Fondo Especial,
cuyo principal objetivo es el de otorgar préstamos a largo pla
zo y sin interés a los países en desarrollo, se encuentra en
pleno funcionamiento. Venezuela lleva a cabo programas de co-
REPUBLICA DE VENEZUELA
DESPACHO DEL PRESIDENTE
-5-
operación financiera con diversos países, con el propósito
de que de dichos programas sirvan de apoyo a la balanza de
pagos de estas naciones hermanas, y promuevan sus industrias
destinadas a la exportación.
Estamos dispuestos ahora a propiciar un sistema de
crédito automático en condiciones concesionales, que absorba
cualquier aumento de precios que se produzca en el futuro.
Pero no debe dejarse sin consideración la circunstancia de que
no es el petróleo el que más afecta la economía de los paí
ses en desarrollo, sino el creciente aumento en los valores de
sus importaciones.
Somos, los países pequeños, los más interesados en el
diálogo y quienes creemos en el proceso creativo y constructivo
que podemos hallar en él para la estabilidad política y econó-
mica del mundo. Las dificultades en estos intentos de diálogo
no han surgido de nuestros países sino de la conducta prepo
tente, ausmida por las naciones que controlan la economía mun-
dial. Esta franqueza es necesaria, si es que realmente nos
anima un propósito de conciliación y entendimiento.
Hemos puesto nuestra fé optimista en la Conferencia
sobre Cooperación Económica Internacional. Esperamos que en
la reunión programada a nivel ministerial para mediados del
mes de diciembre, se produzcan decisiones importantes que nos
puedan llevar a resultados positivos que beneficien tanto a los
países desarrollados como a los países en vía de desarrollo.
Me complace leer en su mensaje la observación de que la estruc
tura internacional "debe basarse en el debido respeto por el
impacto de decisiones de naciones individuales sobre el resto
del mundo". No es otra cosa que lo que venimos pidiendo los
países de la América Latina y del Tercer Mundo en general. Este
es uno de los planteamientos fundamentales contenido en la De-
claración de Derechos y Deberes Económicos de los Estados, que
aún no ha sido suscrita por muchos de los países que más po
drían cooperar para la conformación de esa conducta, y since
ramente cooperar para que la interdependencia sea en verdad
factor de equivalencia y equilibrio. Ojalá que estas palabras
dichas por usted, Jefe de Estado de una nación que tiene res
ponsabilidad fundamental en la conducción de los destinos de la
humanidad, sea efectivamente compromiso para actuar en esa di-
rección, que asegure consideración y respeto a las naciones
débiles que son siempre las víctimas de las decieiones indivi-
duales de las naciones poderosas.
REPUBLICA DE VENEZUELA
DESPACHO DEL PRESIDENTE
-6-
En la próxima reunión de la Conferencia de la OPEP
se van, en efecto, a considerar los precios del petróleo.
Se tomarán en cuenta, como factor importante, los resultados
y progresos que se logren en la reunión ministerial de la Con
ferencia para la Cooperación Económica Internacional.
Venezuela siempre ha querido jugar un papel de equi
librio tanto dentro del marco de la Organización de Países Ex
portadores de Petróleo como en las relaciones bilaterales con
los Estados Unidos. Nos preocupan las implicaciones que po
dría tener un aumento exagerado del precio del petróleo. Pero
también causa desazón que se siga asentando una diferencia sus
tancial en el poder adquisitivo de esta riqueza básica de nues
tros países y esencial para los países desarrollados. Así como
sucede con las demás materias primas o productos básicos del
Tercer Mundo.
Nuestra política y nuestra voluntad están dirigidas
a explorar todas las posibilidades de cooperación y de solida-
ridad. Sobre todo cuando se trata de estrechar los nexos entre
los países de nuestro Hemisferio. El aumento de precios del
petróleo dependerá de esta correlación indispensable entre el
petróleo y demás productos que exportamos las naciones en de
sarrollo, con las importaciones de los países industrializados.
Por lo demás, está propiciando Venezuela la articulación de un
procedimiento automático, como yarlo informé, que impida que
los aumentos de precios incidan en la economía de los países
en desarrollo.
Atentamente,
Carlos Andrés Perez
Presidente de Venezuela
DEPARTMENT OF STATE
DIVISION OF LANGUAGE SERVICES
(TRANSLATION)
LS NO. 59569
CW/BP
Spanish
EMBASSY OF VENEZUELA
Washington, D.C.
Miraflores, November 20, 1976
Dear Mr. President:
My Government has carefully studied your message of November 9
presenting important aspects of the world economic situation and oil
prices. Some of the thoughts you expressed lead me to make the fol-
lowing remarks.
I share your opinion that the friendship between our two countries
requires that we consider with particular care any issue that could
reciprocally affect us. In this regard you express concern over reports
that Venezuela will seek an oil price increase during OPEC's December
meeting. You request our support so that, rather than increasing the
price, our country will exercise its influence to maintain it at current
levels in view of the detrimental effect it would have on inflation and
economic recovery throughout the world.
It is unfair to continue to blame the Organization of Petroleum
Exporting Countries for
world economic problems, particularly in-
flation, This subject has been thoroughly debated and proved not to
Gerald R. Ford,
President of the
United States of America,
Washington, D.C.
2
correspond to the reality of world economy. The decision taken by the
Organization of Petroleum Exporting Countries last May not to increase
oil prices was not only, as you point out, a responsible action on the
part of OPEC, but also the manifestation of a line of conduct that may
be qualified as a significant demonstration of the willingness of petro-
leum exporting countries to enter into dialogue and of their sincere
intentions to contribute in every way possible to a frank and fair under-
standing between developed and developing countries. As could be easily
proved, at that time there were sufficient conditions and reasons to
justify a price increase.
Our confidence in the results of the North-South dialogue led us at
that time to consider postponement of a new increase without specifically
tieing ourselves to the economic indicators that showed a new imbalance
between oil prices and the prices of manufactured goods we import from
your country and other industrialized nations.
In referring to the profits of oil exporting countries you do not
link these figures in any way to the continuous deterioration of the
developing countries' foreign trade conditions.
Venezuela has no complaint to present with regard to the United
States market for its oil. I do not even want to refer to the unjust
provision of the [Foreign] Trade Act which is based on archaic and
pugnacious reprisal criteria that do not in any case correspond with
Venezuela's friendly attitude. I do want to observe however that while
the United States has endeavored to maintain a normal supply and demand
situation, Venezuela has also exerted itself as a petroleum producing
country that is seriously fulfilling its commitments.
3
When considering the price issue it is important to recognize that
the price of oil is but one factor among all the prices of goods traded
on international markets. If we do so, we can see that oil prices are
not the predominant factor in the scale; exports from developed countries
have more weight.
You are inaccurate, Mr. President, in stating that Venezuela did not
properly respond to the considered position of the United States vis-a-vis
that
Venezuelan oil and/ it unilaterally increased prices during a period when
OPEC had decided against such an increase. Our conduct has been in strict
conformity with OPEC decisions. The price of certain crudes and petroleum
products was indeed adjusted. In certain cases these adjustments resulted
in lower prices, in accordance with the market's behavior and OPEC decisions.
This was also the course adopted by the other members of the organization.
I agree with you that industrialized countries by themselves cannot
solve the problem of inflation and that we petroleum-producing nations are
also responsible for controlling inflation. But these responsibilities
take on a very different dimension when, in a sincere search for truth, we
compare the value of exports from developing countries, including OPEC
countries, which only amounts to 25 percent of the total value of world
trade, with that of exports from developed countries, which represents the
other 75 percent. This is exactly where the misunderstanding occurs, since
there exists a lack of consideration and understanding in developed countries,
and among them the United States, for the situation that we developing States
face.
You refer to the price of grain, for instance, which in the final
analysis is not of major importance for the United States economy and
4
of
balance/ trade in spite of the volume involved, but in developing countries
agricultural prices do have a direct relation to the fundamental imbalance
of their economies. At the present time, these prices, with the exception
of very few products, are clearly deteriorating and thus causing great dam-
age. to the economies of most developing countries. And this deterioration
is provoked by manipulations from within the countries that control the
world's economy.
We do not doubt the negative impact that you say would result from an
oil price increase. The continuous spiralling of energy prices is as detri-
mental to global economic development as the continuous increase in the
price of the capital goods and other manufactured articles that our coun-
tries import from industrialized nations and in the cost of technology
transfers. It is not a question of imposing obligations on the developing
countries to pay for the well-being of industrial nations through our work
and raw materials, but rather a question of making a sincere effort to
establish the equivalency and balance that we believe should be accomplished
through the creation of a new international economic order.
The oil price increases approved by OPEC countries, and not specifi-
cally by Venezuela, are only an attempt to protect their bying power.
This position cannot in any way be construed as causing inflation; on the
contrary, it is a consequence of inflation. I am not making a rash state-
ment when I repeat that the inflationary trend and the economic recession
of the last few years are consequences of industrial countries' fiscal
and monetary policies. There is no denying that oil prices in the last
two years have been lower than what would have been justified in order
to maintain the unit value of our terms of trade.
5
We are also concerned about the situation of developing countries
that import oil; their situation will grow progressively worse as the
prices of the raw materials and commodities they export continue to
deteriorate while the prices of capital and other manufactured goodsthey
need to import for their development continue to rise. However OPEC
countries have taken effective measures to cooperate with other Third
World countries through investment and financial assistance policies.
In this regard, OPEC economic assistance has been given on an individual
and collective basis. The special fund, mainly designed to grant long-
term interest-free loans to developing countries, is now in full opera-
tion. Venezuela is undertaking financial cooperation programs with
various countries in order to bolster their balance of paymentsand pro-
mote their export-oriented industries.
We are now ready to propose an automatic soft credit system to absorb
any future price increase. But it must be remembered that it is not oil
that most affects the economies of developing countries but rather the
continuous increase in the cost of their imports.
We small countries are the ones most interested in dialogue; we
believe that it could be a creative and constructive procedure to develop
political and economic stability in the world. The difficulties which
have arisen during past dialogue attempts have not been caused by our
countries but by the arrogant attitude of the nations that control the
world's economy. This candor is necessary if we are truly prompted by
a desire for conciliation and understanding.
We have put our faith in the Conference on International Economic
Cooperation. We hope that the ministerial-level meeting planned for
6
mid-December will produce major decisions that will lead to positive
results for both developed and developing countries. I was pleased to
note in your message that the international structure must be based
on due respect for the impact of decisions taken by individual nations
on the rest of the world. This is exactly what we in Latin America and
the Third World have been seeking; this is one of the basic principles
of the declaration of the economic rights and duties of States which has
not yet been signed by many of the countries that could do the most to
further this line of conduct and sincerely cooperate to make interde-
pendence a true factor of equivalency and equilibrium. I hope that those
words used by you, the Chief of State of a nation that has a fundamental
responsibility in shaping mankind's destiny, represent a real commitment
to act according to this principle so that consideration and respect are
ensured the weak nations which are always the victims of individual de-
cisions taken by the powerful nations.
The next meeting of the OPEC Conference will indeed consider oil
prices. It will take into account, as an important factor, the results
and progress achieved during the ministerial meeting of the Conference
on International Economic Cooperation.
Venezuela has always wanted to play a balancing role both within the
Organization of Petroleum Exporting Countries and in bilateral relations
with the United States. We are concerned by the possible implications of
an
excessive price increase. But we are also troubled by the fact that
there continues to be a substantial difference in the purchasing power of
this basic resource of our countries which is essential to developing coun-
tries. This is also the case of the Third World's other raw materials and
commodities.
7
Our policy and our intention are to explore all possibilities for
cooperation and solidarity, especially when it involves the strengthening
of bonds between countries of our hemisphere. The oil price increase
will depend on this essential correlation between oil and other products
that we export to developing countries and the imports from industrialized
countries. As I mentioned previously, Venezuela is proposing that an auto-
matic mechanism be devised to prevent price increases from affecting the
economies of developing countries.
Sincerely yours,
Carlos Andrés Pérez
President of Venezuela
5917
CONFIDENTIAL/GDS
(CLASSIFICATION)
S/S# 7624779
December 1, 1976
Date
DEPARTMENT OF STATE
EXECUTIVE SECRETARIAT
TRANSMITTAL FORM
FOR: Mr. Brent Scowcroft
National Security Council
The White House
REFERENCE:
TO: The President
FROM: Venezuelan President Perez
DATE: November 20
SUBJECT: response to the letter
from the President regarding planned increase in OPEC prices
WHITE HOUSE REFERRAL DATED:
NSC #
THE ATTACHED ITEM WAS SENT DIRECTLY
X TO THE DEPARTMENT OF STATE
ACTION TAKEN:
A draft reply is attached.
A draft reply will be forwarded.
A translation is attached.
An information copy of a direct reply is attached.
X
We believe no response is necessary for the reason
cited below.
Other
REMARKS:
The response requires no further reply as in the case of
Iranian and Saudi Arabian responses.
to wolf
DO
fn
C. Arthur Borg
Executive Secretary
lob 3/10/04
D
CONF IDENTIAL /GDS