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Secretary Kennedy stated that his interest in the issue concerned
balance of payments implications. He stated further that the Treasury
Department is concerned with special tax provisions granted to pro-
ducers, and the relation of the tax statutes to U.S. firms which are
international in character, particularly those dealing in petroleum.
He added that he thought the matter would result in a law suit and go
into the courts no matter what decision was reached eventually.
He said that he thought there were too many influential people on
both sides of the issue to keep the matter out of the courts.
The President then made these points: (1) We shouldn't feel forced
to move too quickly. We should take a very close look at the politics
involved, and the merits from all angles; (2) Wally Hickel should not
have to sit in the hot seat on this one, especially so soon after his
somewhat delayed confirmation; (3) I'm not so sure this matter should
remain with Interior. Perhaps we should consider rescinding Presi-
dent Johnson's proclamation and putting the matter of oil import quotas
back in the WhiteHouse. Of course, we don't want it to look as though
we're attempting to keep the matter out of Wally's area purposely. It
might be moved to Commerce ultimately.
The President called in John Ehrlichman and asked his opinion.
Mr. Ehrlichman stated that there were several alternatives: We
could sit on the matter for a while -- move the issue back into the
White House -- or, as the President suggested, move it to Commerce.
After some discussion it was decided to transfer the matter of adminis-
tering quotas governing the importation of oil back to the White House,
and then perhaps eventually transferring it on to Commerce. Meanwhile,
we will be able to state to the Congress and the various pressure groups
that as soon as the move is completed we will give the matter intensive
study, in a new light, taking a fresh approach to the issues involved.
In the interim, we will have our thinking caps on and be pondering all
aspects of the total problem.
Near the end of the meeting Bryce Harlow was called in to discuss
briefly with the President and Secretary Kennedy a statement, in the
form of a release by the President, on the Administration's position
re tax reforms.
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"ocrText": "-2-\nSecretary Kennedy stated that his interest in the issue concerned\nbalance of payments implications. He stated further that the Treasury\nDepartment is concerned with special tax provisions granted to pro-\nducers, and the relation of the tax statutes to U.S. firms which are\ninternational in character, particularly those dealing in petroleum.\nHe added that he thought the matter would result in a law suit and go\ninto the courts no matter what decision was reached eventually.\nHe said that he thought there were too many influential people on\nboth sides of the issue to keep the matter out of the courts.\nThe President then made these points: (1) We shouldn't feel forced\nto move too quickly. We should take a very close look at the politics\ninvolved, and the merits from all angles; (2) Wally Hickel should not\nhave to sit in the hot seat on this one, especially so soon after his\nsomewhat delayed confirmation; (3) I'm not so sure this matter should\nremain with Interior. Perhaps we should consider rescinding Presi-\ndent Johnson's proclamation and putting the matter of oil import quotas\nback in the WhiteHouse. Of course, we don't want it to look as though\nwe're attempting to keep the matter out of Wally's area purposely. It\nmight be moved to Commerce ultimately.\nThe President called in John Ehrlichman and asked his opinion.\nMr. Ehrlichman stated that there were several alternatives: We\ncould sit on the matter for a while -- move the issue back into the\nWhite House -- or, as the President suggested, move it to Commerce.\nAfter some discussion it was decided to transfer the matter of adminis-\ntering quotas governing the importation of oil back to the White House,\nand then perhaps eventually transferring it on to Commerce. Meanwhile,\nwe will be able to state to the Congress and the various pressure groups\nthat as soon as the move is completed we will give the matter intensive\nstudy, in a new light, taking a fresh approach to the issues involved.\nIn the interim, we will have our thinking caps on and be pondering all\naspects of the total problem.\nNear the end of the meeting Bryce Harlow was called in to discuss\nbriefly with the President and Secretary Kennedy a statement, in the\nform of a release by the President, on the Administration's position\nre tax reforms."
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