Memorandum of Conversation with Secretary of State Dean Acheson, the Ambassador of Canada, Mr. Satterthwaite, and Dr. Berkner

8/s om IDENTIAL 152 DEPARTMENT OF STATE 248 Memorandum of Conversation DATE: August 31, 1949 SUBJECT: Oil Imports . SERVICE" RECORDS AND PARTICIPANTS: Messrs. W. R. Poage, Eugene Worley, Ed Gossett, G. H. Mahon, Albert Thomas, 0. C. Fisher, W. H. Lucas - Congressmen from Texas. S - The Secretary /E - Mr. Thorp arrived just before conclusion of meeting7 PED - Mr. Eakens COPIES TO: S E H ITP CP 1-1493 As the Secretary had only a limited amount of time for the meeting, the discussion consisted of Congressman Gossett, who acted as the principal spokesman, and other members informing the Secretary of their concern about oil imports. According to Mr. Gossett, in the second quarter of 1949 oil imports were the highest in history, and they are causing hardship to the independent oil producers of Texas, where production has been reduced over 700,000 barrels per day. They have also reduced tax revenue of the State of Texas from severance taxes on oil by about $30 million, and a special session of the Texas Legislature is going to have to be called before the end of the year to find new sources of revenue to make up for this loss. He said that oil imports are increasing and that there is nothing to keep the large oil companies from even doubling the present level. He mentioned that he did not believe any agency of the Government could control such imports through persuasion, or even coercion if that were necessary, unless it is the State Department. The group does not wish to support DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) the Depr. of State letter, 13.3.3375 By NLT- He ; NARS Date 4.27.76 CONE TDENT IAL