Jessen's weekly., 1962-01-31

questioned John McCone, new Gen. tral Intelligence Chief, last week, seemed most concerned about his position as one of the biggest stock holders in Standard Oil of Cali fornia. In the back of their minds was the influence this might have on McCone's CA recommendation regarding Arabian oil, Israel, and one of the worlds key trouble spots -the Near East.
 Senators who listened to Me- Cones cool, quiet denials that his $1,000,000 personal investment in Standard of California would influ- ence his decisions, did not know that only one night before he had had dinner with Ted Peterson, long, time head of Standard of California.
 Peterson had come to Washington for the express purpose of using his personal influence and charm on any Senators who might be opposed to McCone's confirmation, and con- ferred with McCone on the eve of the Senate hearing.
 This in itself would indicate how important the oil company con- slderS McCone's appointment to the key post of Central Intelligence. Chairman Dick Russell of Georgia also confirmed it's importance by declaring solemnly that McCone's job was second only to the presi- dency in it's importance.
 But Russell showed his annoyance when Senators wanted to question McCone by pointedly reading his personal mail during the critical questioning. Then he studied a coat of-arms design and tried to interest Sen. Margaret Chase Smith in it.
 The lady from Maine, however, was not to be deterred. She brought out that McCone owned $1,OOO, ,OOO worth of stock in Standard Oil of California, one of the four founders of the Arabian-American Oil Com. pany.
 Won't Sell His Stock
 Tt is clear she pressed, that the Central Intelligence Agency must make some evaluations, recommen- dations, and reports to the Presi. dent regarding the Middle East. Dc you see any possibility of conflict of interest on these matters as CA director when you have such large holdings in these oil companies?"
 The amount of my holding in Standard Oil of California that you mentioned is approximately cor rect" McCone admitted. Tt might be little larger than the figure you mentioned. But quite aside, my opinion is that the holding of stock in an oil companl or in several oil companies would have no effect whatsoever on my activities as di- rector of Central Intelligence"
 Sen. Russell had said that it would not be necessary for McCone to sell his oil stock or his shipping company stock.
 Later Sen. Francis Case, South Dakota Republican, came back to the subject.
 Do you know" he asked, where the principal oil reserves of Stand ard Oil of California are?"
 T know they have extensive re- serves in Arabia and in the off shore island in the Persian Gulf of Bahrein,' replied McCone.
 Would the fact that you are a stockholder in Standard of Cali fornia or that some of the ships in your shipping enterprises are en- gagged in carrying oil for Standard of California, prejudice any deci- sion you might be called upon to make as the emphasis of CHA oper- ations?' demanded the dogged South Dakotan.
 None whatsoever in my opinion" claimed McCone.
 When Sen. Bartlett of Alaska brought up the subject. Massachu- setts blueblood Sen. Levertt Sal tonstall fidgeted with irritation. EorI;or ;,, fho Laor;0c Io Lo~l x,.:-- ]