Evening star., 1944-02-16
U. 5. Oil Policy
Is Demanded in
Truman Report
Says Nations Future
May Depend on
Foreign Supplies
BY the Associated Press.

--~NN~'t-NN-
A warning that the Nations
future may depend on develop
ment of foreign oil reserves was
sounded by the Truman Com
mittee today in calling for i'm
mediate congressional formula
ton of "a positive, vigorous
American policy on petroleum.
Asserting that the war is depict
ing domestic reserves, the commit
tee urged that the Nations Allies,
particularly Great Britain, be asked
to transfer to the United States "a
compensating volume of proved
reserves outside this country"
However" it continued, "even
more important is an agreement
with our Allies on the equitable al
location of world reserves of petro-
leum which will be discovered and
proved in the future, plus the for
mutation of positive, vigorous
American policy on the whole sub
ject"
Farley on Committee Held.
Before issuance of the Truman
Committee report Majority Leader
Barkley conferred with Chairman
Bailey of the Senate Commerce
Committee and others on establish
ment of a nine-man Senate COM
mitee to establish a national petro-
leum policy.
Senator Bailey said the proposed
group would include three repre-
sentatives each from the Commerce,
Foreign Relations and Interstate
Commerce Committees In addition
to its broader duties it would con-
slider complaints made by Senator
Moore. Republican, of Oklahoma
against Petroleum Administrator
Ickes and would investigate the
proposed construction of $50 mile
pipe line from the Persian Gulf
area to the Mediterranean.
Oil Ample to Win War.
The Truman committee said the
current depletion of petroleum re-
sources does not present the possi-
bility of an immediate catastrophe,
because fortunately we have beyond
doubt sufficient petroleum to win
this war"
1t made public a letter from Mr..
Ickes asserting that reserves in this
country have relatively short life
Expectancy of IA years" The COM
mittee said that indicated the i'm
: portance of assuring access to petro-
. .leum resources in the Eastern Hemi-
sphere.
While Mr. Iekes declared. that
American interests were supplying
"a disproportionate share of oil, in
cluding 95 per cent of the aviation
gasoline, he added that. the British
: were producing and refining all
that they can, subject only to the
physical limitations of available
facilities.
Partial Gosernment Ownership.
While asserting that Government
ownership of foreign oil reserves is
out of the question on the ground
that IF there had been no incentive
for private initiative, our conces-
slonS at Bahrein Island and in
Saudi Arabia would never have been
obtained and that it would involve
"a radical change in our economic
system the committee said par
tial Government ownership cannot
be ruled out.
Although partial ownership might
also discourage private initia tive
and impose the possibility of politi-
cal influences, the report asserted.
obtaining oil resources is so vital
and the regulation of foreign fields
so difficult. that Government par
ticipation in ownership may need
to be given serious consideration. :"
Other courses Congress should
consider, it said, are continuation
of the present policy of exploration
by private firm with limited diplo-
matte assistance or full diplomatic
backing for American business.
Although private American en-