Evening star., 1952-08-19
President Releases
long-Secret Report
On World Oil Cartel
BY the Associated Press

pr mo ASSoCtOIeo PTeSS
President Truman has ordered
the lid off a long g-secret report on
international oil deals amid new
charges that a rich and powerful
oil cartel is siphoning United
States foreign aid funds.
The report. which may have
diplomatic repercussionS abroad,
promptly became fuel for a Fed
eral grand jury which next month
will open an investigation of
alleged price fixing and monopoly
practices in the oil industry.
,--s. Decision to lift the official secret
label from the report, a year after
1t was written by Federal Trade
Commission staff experts, was an
nounced yesterday by Senator
Sparkman of Alabama, the Demo-
cratic nominee for Vice President.
49, Senator Sparkman spoke as head
OF the Senate Small Business sub
committee. and as the man whose
public demand for the informa-
ton presumably resulted in the
presidential order. The Alabaman
said his subcommittee would make
an investigation of its own before
passing judgment on the FTC
findings.
- Now Being Printed.
Senator Sparkman said the To-
hchapter report is being printed
now by his subcommittee and
fprobably will be available for dis
trlbution by the end of this week."
The State Department has ac-
knowledged that it had the docu-
ment classified as secret for secur-
1ty reasons and lest its contents
further inflame relations between
British oil interests and the gov
ernment of Iran.
1T is my opinion that it's re-
lease at this time is not likely to
Jeopardize our national security or
undermine the aims of our foreign
policy" Senator Sparkman said in
a prepared statement. THE secur-
1ty aspect of the matter has been
cleared with responsible agencies
Of Government"
In swift followup developments:
/. The Justice Department.
moved to subpoena the report for
its recently ordered Federal grand
jury investigation of monopoly
charges against seven United
States and foreign oil companies. |
2. Senator Hennings, Democrat, |
of Missouri fired new accusations
of intrigue at the oil firms, charg- |
ing they form a cartel and a giant
conspiracy" prof1teering against
European nations which receive
United States dollar aid.
Senator HenningS renewed &C
cusations that the oil companies
charge those countries a higher
price for oil than they charge buy
ers in this country and Canada,
contending that this has added
huge sums OF the costs of United
States foreign aid.
The seven United States and
foreign oil companies are Standard
Oil of New Jersey, Standard Oil
of California, the Texas Co., Soco-l
hy-Vacuum, Gulf Oil-all United
States owned-and two foreign
firms dominated by the British,
Royal Dutch Shell and Anglo
1ranian Oil Co.
1T is unmistakably clear" he
said, that even against our own
Government the oil cartel is power
full enough to dictate it's own prices
and terms which are admittedly
discriminatory and onerous in
their effect on the American tax
payer"
Senator Hennings quoted a let
ter from w. John Kenney, deputy
director of the Mutual Security
Agency which administers foreign
aid. dated July 80 and reporting
that an effort to discourage the
double price standard "has not
been successful" but that it may
bear fruit later.
Control On Industry Traced. .
Senator Sparkman's statement !
said the suppressed report traces
the substantial control by seven
international oil companies over
the petroleum industry of the
world" i
He said it "details the common
ownership of oil resources by the
major companies in the Middle
East" their arrangements to buy
and sell oil to one another, and
shows how their marketing and
production agreements enable
them Ito control and regulate the
flow of oil' under IAN interna- !;
tional pricing mechanism"
F. w. Abrams, chairman of the |.
board of Standard Oil Co. (New
Jersey. issued a statement say !
ing that with release of the re- [
mort "we shall now have sl1h- |,