Good Start on Panama

As Secretary of State Kissinger said, the agreement
between the United States and Panama on eight prin-
ciples to govern negotiation of a new Panama Canal
treaty has created a favorable climate for the meeting
of American foreign ministers in Mexico next week.
Whether it will fulfill Mr. Kissinger's prediction of a
"first step toward a new era" in inter-American affairs
will depend on how promptly the treaty can be con-
cluded and ratified.

As previous abortive efforts to conclude a new treaty
demonstrate, these tasks will not be simple. The Admin-
istration seems willing eventually to meet all of Pan-
ama's reasonable demands; but the governments are
still apart on the most emotional issue of all: the date
on which sovereignty over the waterway and the Canal
Zone will finally be transferred to Panama.

Once that is agreed, the Administration will have to
mount one of its most effective efforts ever to win
Senate approval of a treaty certain to be opposed on
national security grounds by Pentagon forces and many
among the "Zonians"—the 12,000 Americans who live
in the Canal Zone. And Panamanian politicians and busi-
nessmen must for once stand up to those who will
charge that their Government has sold out to Washing-
ton.

"There is opposition in both our countries to a reasonable resolution of our differences," Mr. Kissinger acknowledged at the signing of the Joint Statement of Principles in Panama. "Old slogans are often more comforting than changes that reflect new realities." He and President Nixon must now go to work to expose the emptiness of those old slogans and to point up the long-range dangers for this country in trying to perpetuate a relic of another era.

The eight principles are rooted in common sense and
intelligent compromise, reflecting Panama's consuming
desire to regain control of its territory but also legiti-
mate American concern for the operation and defense
of the vital waterway. What is required now is a
prompt start on the final negotiation and then a vigorous
follow-through by both governments.

Turkey to resume production of opium. Page 4

Abrams testifies on Mideast war findings. Page 4

Soviet presses U.S. on strategic arms stance. Page 5

Saigon says it will regain lost islands. Page 6

China assails Respighi's music. Page 7

Pattern emerging in British election campaign. Page 9

## Government and Politics

Nature of impeachment inquiry is disputed. Page 12

Aiken, dean of the Senate, to retire. Page 28

Vice President well received on speaking tour. Page 28

Liberals hear of Kennedy candidacy. Page 28

City aides take budget hearings to Queens. Page 29

Where Congressmen serve voters—seek votes. Page 29

U.S. limits availability of criminal data. Page 37

I.R.S. ruling in '69 on I.T.T. studied by panel. Page 37

Samuels proposes overhaul of property taxes. Page 37

## Energy

Shultz offers ideas on oil-money flows. Page 1

Energy office staff continues at full speed. Page 14

Meskill assails rule on gasoline priority. Page 15

Lefkowitz to ask for special inquiry on oil. Page 15

Average LILCO bill rising $3.09 this month. Page 15

Three airlines reinstating canceled flights. Page 15

Kuwait receives bids for sale of oil. Page 45

## General

Julie Eisenhower has surgery for bleeding. Page 28

Prosecutor says Mackell concealed data. Page 42

Clifford Irving is freed on parole. Page 42

New pollution rules let states cut construction. Page 26

Funds for behavior modification barred. Page 54

Doctors probe heart with ultrasonic waves. Page 56

## Amusements and the Arts

Clevelanders play Siegmeister symphony. Page 20

The Pop Life. Page 22

Dr. John's music opens Bot tom Line club. Page 22

"Death by Hanging," Japanese film, opens. Page 23

"Way of the World" played with spirit. Page 24

Lawsuit over Mark Rothko estate begins. Page 24

Segovia at 81 delights his audience. Page 25

At the Morgan, a cornucopia of treasures. Page 29

Three books on poetry by women reviewed. Page 37

TV station managers happy, survey shows. Page 55

Going Out Guide Page 24

About New York Page 18

## Family/Style

Helping women discover poetry in selves. Page 38

Some people figure people figures are people. Page 38

Three old East Side restaurant favorites. Page 38

## Obituaries

Max Schaffer, operated Hbert's Museum. Page 32

Theodore Link, investigative reporter. Page 32

## Business and Financial

Prices of stocks score modest advances. Page 43

March wheat price breaks record. Page 43

Payment deficits shrink on two bases. Page 43

Inventories show larger-than-expected rise. Page 43

Prime rate cut to 9% by Bankers Trust. Page 43

2-15-74

THE NEW YORK TIMES, N.

Two Cheers for France

By James Reston

WASHINGTON, Feb. 14.—At critical points in American history, beginning of course with Lafayette, some Frenchman—de Tocqueville, Pierre L'Enfant, Paul Valéry, Jean Monnet or some other prophetic genius—always seems to turn up in Washington to guide us through our troubles, and the latest of these is Michel Jobert, the lean, ironic and highly intelligent envoy of the Pompidou palace and Government.

The Nixon Administration was in trouble here with Europe, Japan and almost everybody else until Mr. Jobert came to the rescue. It was running out of supporters at home and abroad and it was running out of gas. Even its famous détente with the Soviet Union seemed a little shaky after Aleksandr Solzhenitsyn was drummed out of his homeland for telling the truth.

What Mr. Jobert did, speaking for President Pompidou at the Washington energy conference, was to dramatize the dangers of nationalism in dealing with the world problems of defense, money, trade and energy; widen the gap between France and other European Common Market countries, and bring Washington and the Western European capitals, except Paris, closer together. It was quite an achievement: He made Mr. Nixon look good.

Washington itself was in a distracted and vaguely isolationist mood until Mr. Jobert arrived here on Kalorama Road with his Gaullist orders from President Pompidou. President Nixon himself had been talking publicly about solving the energy crisis by mounting a nationalistic policy—"Project Independence"—that would save America and let everybody else fish for themselves.

Also, to put it bluntly, the Congress of the United States was in a bloody and ugly mood, rejecting aid to the poor nations of the world, dismayed by the political problems of Heath in

WASHINGTON

Britain, Brandt in West Germany, and Brezhnev in the Soviet Union — and wondering if it shouldn't concentrate on clearing up its own problems and scandals at home rather than fussing with other folks' problems abroad.

Enter now Michel Jobert at the Washington energy conference. It was poorly prepared he said. Too sudden. And he was right on both points. But then he went on: The big industrial countries should not get together to solve their common problems, even though the oil-producing countries had got together and hiked the prices of fuel fourfold, because this would produce a confrontation between the producers and the consumers.

France would have none of it said Mr. Jobert. Paris would go it alone. And besides, the United States was not thinking about a world energy policy but merely using the energy crisis to regain its dominance over the other industrial countries.

This was old-fashioned Gaullist doctrine, and it was not only inaccurate but almost comical. The Nixon Administration cannot even dominate itself or control the Congress, let alone dominate Europe—now the major trading bloc in the world—or Japan, which is outselling most American producers even in the American market. Seldom has the stupidity of outdated intellectual concepts been more apparent.

The interesting thing about this energy conference was not that the Nixon Administration was strong but that it was weak (and therefore had to be sensible and even generous); not that it was trying to dominate its old allies but that it was reaching out to them for help, asking for a sort of reverse Lend-Lease.

This was what Henry Kissinger was trying to say to Europe last April in

his Waldorf-Astoria speech, when he was almost imploring Europe to work with the United States for a new world order. This was also what he was saying at the beginning of the energy conference here when he offered to put the natural resources and the advanced technology of the United States at the disposal of both the oil-producing and oil-consuming states to solve the energy problem by conserving and sharing energy and working together on atomic, solar, and thermal energy for the future.

But President Nixon and Secretary Kissinger were not able to persuade the Europeans with their rhetoric about partnership and interdependence to create a new order of money, trade and energy in the world.

It took the French to make the point clear and the precision and determination of Mr. Jobert to drive it home. He argued that the main problem was not a shortage of fossil fuel energy but a surplus of American political energy, and that France would have none of this wicked scheme of American dominance but would solve her energy problems on her own.

The American politicians and newspapers have criticized Mr. Jobert for this, and they have been very unfair. He didn't wreck this ill-prepared conference but saved it. The amiable debates between him and Mr. Kissinger were not destructive but constructive. They surfaced the conflict that has been there all along between the United States and the Common Market countries, and in the end, all of them except France decided to try to find common solutions to what is obviously a common world problem.

So two cheers for Jobert. Instead of blaming him, we should be sending him a valentine. Without his eloquent defense of selfish nationalistic interests, we might never have understood how silly they were.

# Pomp, Pumps and Pitter-Patter

A Commentary
By Nicholas von Hoffman

Masayoshi Ohira walked by looking scrutible. You could tell from the foreign minister's face that Japan was up the creek and if he wanted to return home from the energy conference here he'd have to wait his turn at the gas pumps like everybody else in Washington.

This city hasn't had a major international working conference in many, many years. Although it brought this one off, it was noticeably short on the pump you see on TV when they do it in Paris with the Garde Republicaine in their shiny breast plates. The 12 foreign ministers and Henry had to open their own limousine doors when they arrived at Foggy Bottom. It's worse in Brussels, according to the visiting press, where matters are so informal that the diplomats' chauffeurs sit outside the door of the meeting room and get smased on calvados.

The general atmosphere here was of a too hastily convoked Super Bowl wherein all the participants are housed in a slightly pretentious suburban Holiday Inn. But in the State Department, instead of bellhops, Henry seems to have hired a bunch of college kids to run errands. Each of them wore a card designating them as a "precis writer." They stood about making pleasant, polite little noises and, as a reward, were given turns riding about the marble halls on an inexplicable, largish, yellow electric tricycles.

For a person who's covered American politicians most of his life, the comparison with the foreigners was instructive. Arthur Burns, the head of our Federal Reserve, managed entrance and exits with a modest absence of bodyguards. His frozen, out-of-the-side-of-the-mouth rictus may have been protection enough.

Kissinger and Oil Czar William E. Simon came fully protected by the increasingly thuggish types who seem attracted to the Secret Service. Mind you, this protection

is so that our Secretary of State can walk from one room to another in his own building, a building you can't get in without a pass. Even with Henry, who does break through the ring of his protectors to shake hands and chat, you get the feeling that the man is being smothered in his own status symbols.

A visiting Canadian journalist watched Henry and entourage go by and remarked on how anyone in Ottawa can walk up to the Prime Minister and chat with him after a session of Parliament. In general, the foreign ministers of the other great democratic powers seem to have more self-confidence—or less fear of assassination.

Of course, when they're among their own countrymen they may need protection also; but here Walter Scheel, the German who looks like a dear, graying sheep, gets along with a minimum. He's the fellow who's running for President over there, singing on a top pop hit 45 single. He seemed less cast down than the Italians or less worried than "the Brits," as everybody called the English, or the other countries starving for fuel.

Having none of the gloom was Michel Jobert. The American politicians should never have left this Frenchman in the country. He makes our crowd look like such slobs. It's just the way he stands—straight, that is. And with the posture comes a diction, a precision of speech, a nice sardonic humor and a command of language which, if not quite theatrical, does suggest that he doesn't enjoy reading memos.

Monsieur le Ministre also scored points. Is the American opposition to countries like France making one-to-one deals for oil with the producing countries, based on a fear this would drive up the prices, he wanted to know. Or is it based on an effort to save the great, mostly American-owned oil companies? Jobert gave the impression that Kissinger was fighting to save the middle-

See COMMENTARY, C4, Col. 2

THE WASHINGTON POST

C4

Friday, Feb. 15, 1974

Pomp,
Pumps,
Politics

COMMENTARY, From C1

man, but that France was perfectly content to be gouged
by Iran rather than Exxon.

The American government wants all the buyer countries to stick together to force the producer countries to sell for less. Jobert is skeptical that the United States, the world's largest oil producer, is going to join a serious effort to push down the price of oil. Even as he spoke, Nixon's man, Roy Ash, said that our government should indemnify the oil producers against a price drop.

SCENE/CONSUMER

In any event, even if Kissinger means it, the only way to push the price of oil down would be for the United States to export some of its crude to Europe; and if Nixon tries that, there will no longer be any doubt as to the definition of an impeachable offense.

Nothing was accomplished, because nothing could be. But they will all meet again. "I want to be here when they do," said a German. "I want to be here for the World Water Conference when they tell us we can only flush on even days."

© 1974, The Washington Post/King Features Syndicate

SPECTRUM
Varying shades of personal opinion on current issues

JEFFREY ST. JOHN
CBS RADIO NETWORK

FEBRUARY 14, 1974

I'm Jeffrey St. John.

"No one has any idea," wrote the Prussian statesman Bismarck, "how much charlatanism there is in diplomacy."

Secretary of State Henry Kissinger is a living testament to this Bismarck observation. In fact, he is a great admirer of Bismarck, particularly the 19th century Prussian Chancellor's talent for manipulation of people. Herr Kissinger has managed so far to manipulate the media and, thus, keep his own possible role in the Watergate mess a tightly-guarded secret. This may now be at an end.

The recent revelation that the military was spying on Dr. Kissinger and his secret diplomatic efforts back in 1971 is doubtlessly true. It is also true that it brings us one step closer to finding out the role Dr. Kissinger played in the so-called Plumbers domestic spying operation, which was first put into gear in 1971 to plug security leaks and to get the goods on Daniel Ellsberg of Pentagon Papers fame. It is my view that, when the story finally emerges, we will find that Dr. Kissinger was deeply involved with the Plumbers group and perhaps even with the coverup when the Watergate burglars were caught back in 1972. If this proves to be an accurate prediction, it means that Mr. Nixon's Secretary of State has been lying through his teeth and has gone Bismarck one better when it comes to diplomatic dishonesty.

It is my surmise that the critics of President Nixon are only partly correct when they claim that the President refuses to release tapes and documents to save himself politically. I believe Mr. Nixon refuses to release those tapes because they are likely to show Dr. Kissinger's deep involvement in Watergate and the coverup.

It is clear that the only area of the Administration left untouched by scandal is in foreign affairs and its architect, Dr. Henry Alfred Kissinger. If it becomes known, as I predict it will be, that Dr. Kissinger was deeply involved in Watergate and other high crimes and misdemeanors, it will be the final act that will sink the Nixon Administration.

It will be interesting to watch how Dr. Kissinger's loyalists in the mass media and Congress act when they come face to face with the possibility of Dr. Kissinger's involvement in a Watergate affair about which such Kissinger loyalists have moralized and hung around President Nixon's neck. We shall see if they publicly wring Kissinger's neck with the same zeal as they have Mr. Nixon's.

I'm Jeffrey St. John for Spectrum.

COMMUNIQUE

Summary Statement

1. Foreign Ministers of Belgium, Canada, Denmark, France, the Federal Republic of Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway, the United Kingdom, the United States met in Washington from February 11 to 13, 1974. The European Community was represented as such by the President of the Council and the President of the Commission. Finance Ministers, Ministers with responsibility for Energy Affairs, Economic Affairs and Science and Technology Affairs also took part in the meeting. The Secretary General of the OECD also participated in the meeting. The Ministers examined the international energy situation and its implications and charted a course of actions to meet this challenge which requires constructive and comprehensive solutions. To this end they agreed on specific steps to provide for effective international cooperation. The Ministers affirmed that solutions to the world's energy problem should be sought in consultation with producer countries and other consumers.

- 2 -

Analysis of the Situation

2. They noted that during the past three decades progress in improving productivity and standards of living was greatly facilitated by the ready availability of increasing supplies of energy at fairly stable prices. They recognized that the problem of meeting growing demand existed before the current situation and that the needs of the world economy for increased energy supplies require positive long-term solutions.

3. They concluded that the current energy situation results from an intensification of these underlying factors and from political developments.

4. They reviewed the problems created by the large rise in oil prices and agreed with the serious concern expressed by the International Monetary Fund's Committee of Twenty at its recent Rome meeting over the abrupt and significant changes in prospect for the world balance of payments structure.

5. They agreed that present petroleum prices presented the structure of world trade and finance with an unprecedented situation. They recognized that none of the consuming countries could hope to insulate itself from these developments, or expect to deal with the payments impact of oil prices by the adoption of monetary or trade measures alone. In their view, the present situation, if continued, could lead to a serious deterioration in income and employment, intensify inflationary pressures, and endanger the welfare of nations. They believed that financial measures by themselves will not be able to deal with the strains of the current situation.

- 3 -

6. They expressed their particular concern about the consequences of the situation for the developing countries and recognized the need for efforts by the entire international community to resolve this problem.

At current oil prices the additional energy costs for developing countries will cause a serious setback to the prospect for economic development of these countries.

7. General Conclusions. They affirmed, that, in the pursuit of national policies, whether in the trade, monetary or energy fields, efforts should be made to harmonize the interests of each country on the one hand and the maintenance of the world economic system on the other. Concerted international cooperation between all the countries concerned including oil producing countries could help to accelerate an improvement in the supply and demand situation, ameliorate the adverse economic consequences of the existing situation and lay the groundwork for a more equitable and stable international energy relationship.

-4-

8. They felt that these considerations taken as a whole made it essential that there should be a substantial increase of international cooperation in all fields. Each participant in the Conference stated its firm intention to do its utmost to contribute to such an aim, in close cooperation both with the other consumer countries and with the producer countries.

9. They concurred in the need for a comprehensive action program to deal with all facets of the world energy situation by cooperative measures. In so doing they will build on the work of the OECD. They recognized that they may wish to invite, as appropriate, other countries to join with them in these efforts. Such an action program of international co-operation would include, as appropriate, the sharing of means and efforts, while concerting national policies, in such areas as:

- The conservation of energy and restraint of demand.

- A system of allocating oil supplies in times of emergency and severe shortages.

- The acceleration of development of additional energy sources so as to diversify energy supplies.

- The acceleration of energy research and development programs through international cooperative efforts.*

* France does not accept paragraph cited with an asterisk.

- 5 -

10. With respect to monetary and economic questions, they decided to intensify their cooperation and to give impetus to the work being undertaken in the IMF, the World Bank and the OECD on the economic and monetary consequences of the current energy situation, in particular to deal with balance of payments disequilibria. They agreed that:

- In dealing with the balance of payments impact of oil prices they stressed the importance of avoiding competitive depreciation and the escalation of restrictions on trade and payments or disruptive actions in external borrowing.*

- While financial cooperation can only partially alleviate the problems which have recently arisen for the international economic system, they will intensify work on short-term financial measures and possible longer-term mechanisms to reinforce existing official and market credit facilities.*

- They will pursue domestic economic policies which will reduce as much as possible the difficulties resulting from the current energy cost levels.*

* France does not accept paragraphs cited with asterisks.

- 6 -

They will make strenuous efforts to maintain and enlarge the flow of development aid bilaterally and through multilateral institutions, on the basis of international solidarity embracing all countries with appropriate resources.

11. Further, they have agreed to accelerate wherever practicable their own national programs of new energy sources and technology which will help the overall world-wide supply and demand situation.

12. They agreed to examine in detail the role of international oil companies.

13. They stressed the continued importance of maintaining and improving the natural environment as part of developing energy sources and agreed to make this an important goal of their activity.

14. They further agreed that there was need to develop a cooperative multilateral relationship with producing countries, and other consuming countries that takes into account the long-term interests of all. They are ready to exchange technical information with these countries on the problem of stabilizing energy supplies with regard to quantity and prices.

15. They welcomed the initiatives in the UN to deal with the larger issues of energy and primary products at a world-wide level and in particular for a special session of the UN General Assembly.

- 7 -

Establishment of Follow-on Machinery

16. They agreed to establish a coordinating group headed by senior officials to direct and to coordinate the development of the actions referred to above. The coordinating group shall decide how best to organize its work. It should:

- Monitor and give focus to the tasks that might be addressed in existing organizations;

- Establish such _ad hoc_ working groups as may be necessary to undertake tasks for which there are presently no suitable bodies;

- direct preparations of a conference of consumer and producer countries which will be held at the earliest possible opportunity and which, if necessary, will be preceded by a further meeting of consumer countries.*

17. They agreed that the preparations for such meetings should involve consultations with developing countries and other consumer and producer countries.*

* France does not accept paragraphs cited with an asterisk.

A8

Wednesday, Feb. 13, 1974

THE WASHINGTON POST

# Energy Conference Divided

## CONFER, From A1

Behind the dispute there is a generation of divided views over the relationship of the United States and Western Europe. The differences stretch back into the 1950s and the determination of the late French President Charles de Gaulle to end what he explored as "American hegemony" in the Western world.

West German Finance Minister Helmut Schmidt virtually acknowledged as much at a press conference between sessions in which the Western European ministers grappled, in caucus after caucus, in search of a compromise with the adamantly independent French.

"I think there are some other problems underlying" the energy dispute, said Schmidt, "some underlying political questions." Schmidt said he was "under some restraint" about discussing them

publicly, to avoid widening the gap.

He made his point clear enough however, by indirection.

"We are absolutely clear," said Schmidt, speaking for West Germany, "that we do not want to be put at a choice between good relations with the United States" and unity on Common Market energy policy."

At this point, there is no "common energy policy of the EEC "—the European Economic Community, the Common Market's official name— Schmidt emphasized.

"We do need energy and we also need cooperation with the United States," he said.

Without the United States, said Schmidt, there would have been no armistice in the Arab-Israeli war, because only the United States has the political and military power to maintain such a truce. Without a world energy policy,

Schmidt said, the world will flounder in profound economic confusion

When asked if the breach in the Common Market alignment that is glaringly evident here could destroy the organization, Schmidt said it need not necessarily have "grave results—but on the other hand, it could."

"It depends on the evaluation of governments at home," said Schmidt. "I wouldn't want to overdramatize the situation," he said, because "I would say that the Common Market has lived on crisis. This is the normal procedure. It remains to be seen how deep . . . is this one."

An American official said, "The great majority of the nine [Common Market nations] were prepared to move in the direction of the suggestions which Secretary Kissinger made."

After the ministers' two-hour and 20-minute lunch given by

Kissinger, Donald Macdonald, Canada's energy minister, told newsmen, "There has been no movement at all. I don't find any change."

Britain's Foreign Secretary, Sir Alec Douglas-Home, and Ireland's Foreign Minister Garrett Fitzgerald were among the diplomats who tried to find various compromises.

By drawing on Jobert's insistence that the Organization for Economic Cooperation and Development (OECD) should be the prime agency for coordinating energy policy, the compromisers tried to get an agreement that a foreign ministers' meeting would be held at the OECD by March 1 to prepare for the conference of oil-producers and oil-consumers.

That approach would have telescoped Kissinger's original plan for a second conference of industrial nations and underdeveloped nations, followed by a third conference with the oil-producing nations by May 1. Jobert rejected all variations, however.

Washington Post staff writers Ronald Koven and Selig S. Harrison also contributed to this story.

Synopsis of Kissinger Program
For World Action on Energy

United Press International

Here is a synopsis of Sec-
retary of State Henry A.
Kissinger's seven-point pro-
gram for cooperative world
action on energy presented
Monday to the 13-nation
Washington Energy Confer-
ence.

1. Conservation—Development of new energy sources by cooperating and sharing the costs of conservation and reducing pressures on world supply.

2. Alternative energy sources — The industrial powers must concentrate on known fuel resources, including coal, but must develop the technology required to take advantage of the resources of the continental shelves and nonconventional deposits of shale and other resources.

3. Research and develop-

ment—The U.S. government and private industry are prepared to spend $23.5 billion over the next five years on developing additional sources of energy, particularly nuclear power, and are ready to cooperate with others in this field.

4. Emergency sharing—"The United States declares its willingness to share available energy in times of emergency or prolonged shortages. We would be prepared to allocate an agreed portion of our total petroleum supply provided other consuming countries with indigenous production do likewise..."

5. International financial cooperation—If the industrial nations cannot eliminate trade imbalances created by soaring oil prices themselves, the task must

be approached on an inter-
national basis with both
producers and consumers
engaged in "cooperative so-
lutions."

6. Less-developed countries — These countries should be invited to join the next meeting of the oil-producing nations. The producer nations "should have a special understanding for the problems facing the poorer nations."

7. Consumer-producer relations—"Our ultimate goal must be to create a cooperative framework within which producers and consumers will be able to accommodate their differences and reconcile their needs and aspirations... it seems clear that enlightened self-interest of consumers and producers need not and should not be in conflict."

KISSINGER---CONTINUED

shortage, if they should be hit
again by oil embargoes or pro-
duction cutbacks. But a mutual
program for sharing oil among
nations could also prevent dis-
orderly markets and wild run-
ups in price, like the one that
has just occurred.

Sharing and Limits

At present, there are grounds
for skepticism on how much
oil the United States would be
physically able or politically
willing to share. However, Mr.
Kissinger can point to Ameri-
can willingness to aid the em-
bargoed Netherlands. More
significantly, America's ability
to help others would grow year
by year—"as we move toward
self-sufficiency."

The proposal on mutual
sharing came closest to the
confrontation tactics decried
by the French and others.

Interestingly enough, Secre-
tary Kissinger called for the
oil-consuming nations not only
to share in emergencies but
also to develop "complemen-
tary programs esuch as stock-
piling and standby rationing
schemes." President Nixon has
thus far called rationing "a last
resort," but his Secretary of
State suggested it has a long-
run strategic role to play.

In his remaining three

planks, Mr. Kissinger came out
strongly for policies to nurture
and safeguard global interde-
pendence, lest rampant infla-
tion, worldwide depression,
and balance-of-payments break-
downs result from the energy
crisis.

His fifth plank called for in-
ternational financial coopera-
tion—including new mechan-
isms to recycle the enormous
flows of money going to the
oil-producing countries back to
the rest of the world in the
form of capital investment.

Such recycling, both Mr.

Kissinger and William E. Simon,
the energy administrator, sug-
gested, would be very much in
the interests of the oil-pro-
ducers as well as of nations
receiving the backflow of capi-
tal. Mr. Simon held that oil
money invested now would be
worth considerably more than
oil in the ground a decade from
now.

New Capital Markets

Prof. David T. Kleinman of
Fordham University, who has
been a consultant to the United
States Agency for International
Development and other gov-
ernments, has been working on
proposals for promoting the
development of capital markets
in the less developed countries

—an approach that could facili-
tate the recycling of oil money
in a way that would bring high
returns to the oil producers and
more rapid economic develop-
ment to the poor countries.

In his sixth plank, Mr. Kiss-
singer in fact also stated that
'the wealth of the producer
nations opens up a potential
new source of large-scale capi-
tal assistance for development."

Seventh and finally, Mr. Kiss-
singer declared that the ulti-
mate goal should be to create
a cooperative framework with-
in which producers and con-
sumers could accommodate
their differences and reconcile
their needs and aspirations.

He did not forbear to com-
bine this pitch for producer-
consumer cooperation with a
warning that "excessively high
prices are already calling forth
massive investments in alterna-
tive energy sources, which
raises the prospect of lower
prices and shrunken export
markets for the producers in
the future."

Interest and Income

Enlightened self-interest, he
held should imply a "just"
price, a somewhat discordant
moral or even medieval con-
cept. However, Mr. Kissinger's
concent of justice was not in-

tended to call for sacrifice by
the oil producers, because
"stable oil earnings, at just
prices, wisely invested and in-
creasing by the principle of
compound interest, will be
available as a long-term source
of income."

So the oil producers have a
difficult intellectual and practi-
cal problem. Should they listen
to Mr. Kissinger's siren song of
long-run, dynamic Pareto-opti-
mality? Or should they "take
the money and run"?

As for the rich industrial na-
tions, should they follow the
French example and make fast
bilateral deals with the Arabs
and Iranians? Or should they
align themselves with the
United States and move coop-
eratively in the hope of more
abundant, more secure and
cheaper energy?

The strengthening American
international economic position
—abetted by burgeoning en-
ergy resources, new technology
and an ample capital market—
is acting like a magnet, pulling
the West back into a more
stable constellation. But there
are strong counter-pulls, com-
ing particularly from France,
of immediate economic interest
and political ideology.

AVIATION DAILY 12 FEBRUARY 1974 (13)
PENTAGON MOVES TO REPLENISH WAR RESERVE PETROLEUM STOCKS

The Pentagon is aiming to replenish its depleted war reserve petroleum stocks by July 1, in-
dicating the civilian supply is in line for a huge bite. Rear Adm. William M. Oller, commander of
the Defense Fuel Supply Center, told the House Armed Services special subcommittee on energy re-
sources and requirements that a recommendation to begin restoring military reserve fuel holdings "is
still under review" by the Federal Energy Office (FEO).

Chief Pentagon spokesman Jerry W. Friedheim reported the holdup seems to be the FEO"does
not feel the supply and distribution is sufficient to guarantee any replenishment" of military reserves.
And he added he does not foresee approval being "anything imminent."

In commandeering 265,000 barrels a day to continue operations during the current quarter, the Pentagon had asked for nearly 100,000 barrels more to replace supplies depleted by the Mideast war. Now, the allocation for reserves likely will be greater, cutting availability of fuel for the civilian economy.

Oller held out hope for the future, however, telling the subcommittee, "Once the Arab em-
bargo is lifted and some stability returns to world markets, we can return to our normal practices of
procurement." But, for the time being, "it appears that continued support of defense requirements
must be accomplished by federal allocation." He added, "There is need to reconstitute depleted in-
ventories as soon as possible. Our overall target date for reconstitution of our minimum inventory ob-
jective is 1 July 1974."

Oller noted that the fuel center anticipated the current shortage a long time ago, according
to his prepared statement released by the Pentagon.

In the spring of 1971, he said, offers of JP-4 aviation fuel were twice needs. But by the fall
of 1972, "the margin of offers for domestic JP-4 fell to 20% above the requirements" for the January-
June 1973 period, Oller said. The concern for the following quarter "was justified," he said, as the
center received "only 61% coverage of our domestic JP-4 requirements and 60% of our JP-5 require-
ments. In addition, the response to solicitation for gasoline and heating oils, in support of domestic
posts, camps and stations, was also inadequate."

Compounding this was a price lid placed on government procurement which made sales to
commercial customers more lucrative. This has since changed, "but the net effect was the loss of sub-
stantial coverage during the mid-year period," Oller said. As a result, the Defense Production Act
was invoked to acquire over 19 million barrels from 22 refineries. "Contracts were executed for 96%
of the product requested, and as of Jan. 23, 70% had been accepted," he reported.

4-F

Issues Unresolved
In Oil Conference

France, U.S. Split

By Oswald Johnston
Star-News Staff Writer

The conference called by the Nixon administra-
tion to foster international cooperation to cope
with the energy crisis ends today with most is-
sues unresolved.

Midway through the two-day meeting, a split
emerged between the American sponsors of coop-
eration among consumers nations and the
French, who prefer to go it alone and stay on
good terms with the Arab producer nations.

U.S. OFFICIALS professed late yesterday to be buoyed by the general support their position won from the Japanese and from other Europeans, especially the West Germans. A caucus of European Common Market delegates called last night to heal the rift with the French ended inconclusively.

The first clear sign of where the conference is
going is likely to emerge in the formal commu-
nique the 13 participants are scheduled to publish
late today.

But the communique probably will not tell the
whole story. The French will have to come to
terms with their Common Market neighbors be-
fore the final compromising among all the confer-
ence participants can get under way.

More than anything, Secretary of State Henry
A. Kissinger is hoping that the urgency of the cri-
sis will force most Europeans and the Japanese
to commit themselves to further action: Appoint-
ment of a follow-up committee, commitment to
future meetings of energy consumers including
the underdeveloped nations and agreement to
meet with the oil producer states within two
months.

See CONFERENCE, A-6

It coincides with the Energy Conference, which is in itself a falling reminder that if the Soviets would use their influence with their Arab friends, we might not have to get up at 5 o'clock in the morning to call on our friendly neighborhood gas station, or its equivalent 20 miles away.

More and more, Americans are beginning to wonder if "detente" is not a French word for Cold War. It's hard to tell the difference.

ALL THE blessings of detente seem to have occurred before it officially began, and they are questionable at best. The Russians went along with the mining of Haiphong and thereafter welcomed Richard Nixon to their country. That seems to have drained their small store of benevolence toward us, which seems now exhausted by their stated willingness to sell us back "at prevailing world-market prices" the wheat we sold too them at Washington's Birthday bargain rates. It's a rather sour version of the President's declaration of "an era of negotiation rather than confrontation."

The new relationship was indeed scarcely five months old when it looked dreadfully like the old one. At the height of the Middle East crisis, the

20 YEARS AFTER McCARTEY

Lattimore Red 7

TOKYO (AP)—Owen Lattimore, a China expert the late Sen. Joseph McCarthy accused of being a Communist agent, has been attacked by the Chinese Communists as a "reactionary historian and international spy."

The attack on Lattimore, who 19 months ago was a guest of Premier Chou En-lai, was part of a campaign by Chinese radicals against so-called reactionaries said to have been influenced by the late Defense Minister Lin Piao.

THE PEKING correspondent of Kyodo, the Japanese news service, said the 74-year-old American scholar was denounced in one of a number of recent booklets linking Lin Piao to the ancient Chinese sage Confucius and attacking both of them.

"U.S. imperialist Lattimore is a U.S. reactionary historian and international

OWEN LATTIMORE

spy who once worked as Chiang Kai-shek's political consultant and praised Confucius as a great philosopher," the pamphlet said.

Lattimore was an adviser during World War II to Chiang and later was deputy director of Pacific Operations in the U.S. Office of War Information.

take the atomic anathema as a joke.

Point of View

IT IS HARD to tell the difference between detente and cold war from the military budget. The Pentagon has asked for an increase of $10 billion. The Soviets, it appears, are arming to the teeth, as they always have, and we have to keep up with them— not heaven forfend, because either they or we would dream of annihilating each other now. It is just so we can sit down in greater amity at the next round of the Strategic Arms Limitation Talks. (SALT II).

While the President and the secretary of State have been at considerable pains to assure Americans that detente makes all the differences that

CONFERENCE

Continued from Page A-1

"WHAT REALLY counts is some kind of ongoing action that flows from this conference," an administration official said.

Any such action will be interpreted in the administration as a success for the U.S. insistence on international cooperation and a defeat for the French view that no steps should be taken by any consumers' grouping that suggests confrontation with the producer states — "especially the Arabs," as French Foreign

Minister Michel Jobert put it yesterday.

In a significant concession to French and Common Market misgivings over a formalized "Energy Action Group" of the sort Kissinger proposed in London in December, Kissinger yesterday scaled down his proposal to formation of a "coordinating group" charged merely with keeping the principle conference issues alive until the consumer nations meet again with Third World representatives and the oil producers.

## Subpoena Telling Nixon to Testify Missing in Mail

LOS ANGELES (UPI) — A certified letter containing the subpoena to President Nixon to testify in the conspiracy trial of three of his former aides is apparently missing in the mail.

Superior Court Judge Gordon Ringer, who issued the order, said yesterday he was "rendered speechless" upon learning of the failure of the letter to arrive in Washington, D.C. Superior Court.

The subpoena was sent to Washington by certified mail eight days ago.

JUDGE RINGER'S clerk said federal postal officials have put a tracer on the missing envelope, but they said they wouldn't begin to worry until the delay exceeded 15 days.

Los Angeles Postmaster

James J. Symbol, however, said such a long delay "is not normal at all."

THE JUDGE'S document, upon receipt by D.C. court officials, is expected to be served on the President at the White House.

Attorneys for Nixon's former aides, John Ehrlichman, David Young and Gordon Liddy, contend they need Nixon's testimony to prove that they were government agents authorized to break into the office of Daniel Ellsberg's psychiatrist to get evidence which might pertain to the national security.

Liddy's attorney, Charles Gessler, raised the possibility that the Feb. 25 hearing might have to be postponed if the subpoena is not found and delivered soon.

But Jobert rejected that compromise.

"LET US NOT seek to establish a new world energy order," he warned in a speech that closed yesterday's session.

"Yet we will be suspected of doing so ... if we were trying to institutionalize, in whatever manner, the group of developed consumer countries ... whether it takes the form of working groups, of an energy action group or of less regular conferences with the membership we have today."

Jobert instead repeated the earlier French call for a consumer-producer meeting under United Nations auspices, leaving the more specific problems — such as sharing supplies or technology, developing new resources, coping with monetary dislocations and reducing demand for oil — to existing institutions like the Organization for Economic Cooperation and Development. In summary, he said, "We intend to establish real cooperation with the oil producing countries, particularly the Arab countries."

Other foreign ministers to varying degrees echoed French reluctance to offend the producers by "institutionalizing" consumer interests. But they agreed with Kissinger's position that some cooperation is necessary and that the industrial world faces ruin at present crude oil prices.

German Foreign Minister Walter Scheel, for instance, referred to French-style bilateral deals with producer states as a "beggar my neighbor" policy. In making the comment, Scheel echoed Kissinger's very language.

OECD Secretary General Emile van Lennep of Holland spoke bluntly of the need to bring all prices down and he offered a formula: "High enough to discourage waste and to encourage the development of alternate sources of energy; but not so high as to overshoot the mark and

lead to overinvestment and waste of resources."

PRESIDENT NIXON last night restated the U.S. position when he appealed to consuming nations to cooperate rather than making private deals with the oil producers.

At a black tie White House dinner for foreign ministers and representatives attending the energy meeting, Nixon said that the end result of a free-for-all race to buy oil in separate deals "will be to drive the prices of energy up, drive our economies down and drive all of us apart."

"Short term, the parochial politician might say 'make the best deal you can.' That is good short-term politics," Nixon said. "But, for me, it is in the long term very bad statesmanship."

"We must look to a goal greater than who is going to make the best deal next month or next year," he said, and added that cooperation should extend between oil consumers and producers.

U.S. energy chief William E. Simon, in a lengthy analysis yesterday of the economic consequences of the energy crisis, was blunt in assessing the four-fold crude oil prices increases of last year:

"THE WORLD IS reacting to high prices by reducing demand and will develop alternate sources of energy which in turn will lead to lower prices in the world. market." Simon elsewhere hinted that $4.50 a barrel might have a more reasonable impact on the rest of the world than the current $11.65 posted price or roughly $8.50 market price exacted today by the producers.

"Consumers," he said, "now suffer from the effects of the sharp and sudden upswing in prices. Producers are likely to suffer at some later time from the downswing in prices caused by the market's strong reaction to present high prices."

THE NEW YORK TIMES, TUESDAY, FEBRUARY 12, 1974

C

19

Lawyer Charges Agencies Twist Ecology Legislation

HANDICAPPED GET
HEAD START ROLE

He observed that the Marine Mammals Protection Act/fishing seasons in which the of 1972 called for commercial (sloughs of marine mammals, fishermen to adopt, certain) Congress sought to stop, netting techniques so that has continued." He concluded: "When you look at all these protected species like porpoises would not be accidents, ways in which legislative entirely caught in nets and t tensions can be nullified or al- dowed. The requirement was opposed by some fishing interests as unduly burdensome, and costly."

"There has been over 16 law rather than being the mat- mental decision is governed by a mental advocate commented try to make it."

Preschool Project Widened
for Up to 38,000 Children

By PAUL DELANEY

Editor of The New York Times

WASHINGTON, Feb. 5.—The Office of Child Development has moved to put into effect a law that would allow thousands of handicapped children to participate in Project Head Start for the first time.

Dr. Linda A. Randolph, head-retarded, emotionally disabled for preschool children

for health services that the Agency, announced that implementation of a Congressional mandate would permit 38,000 handicapped children to enroll.

The 1972 law stipulated that 10 percent of the 279,000 handicapped children had been turned away from Head Start (tried by the Office of Child Development, a unit of the Department of Health, Education and Welfare.

Dr. Randolph said that handicapped children had been enrolled in Head Start since its establishment in 1963, but with a percentage of the enrolled were

about 4 percent, he said.

Amendments in 1972 to the Economic Opportunity Act provided that the project included children with severe handicaps, education and social services for preschool children

for, physically handicapped, the hard-of-hearing and deaf, and the visually impaired and blind. Dr. Randolph said that many of those children who are prematurely born, especially in the first year of life, are handicapped. The program is administered by the Office of Child Development, a unit of the Department of Health, Education and Welfare.

Mrs. Johnson Visits Capital
WASHINGTON, Feb. 10 (UPI) Mr. and Mrs. Lyndon Johnson visited Washington Sunday and attended a luncheon that included most of her old friends from the days of the Johnson Administrators. The luncheon was given by Mr. and Mrs.

Head Start provides health, educational and social services for preschool children 3-Club.

EASTERN IS WORKING HARDER FOR YOUR DOLLAR

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The L-1011 Coach Section

be 1920 act to permit the pipe-

"Another executive department device is the technique of certification" Mr. Mooreman continued. "An agency gets authorization for a project that is consistent with a statute, and when Congress does nothing, contends that this amounts to raffification of the plan and approval by implication of the statute."

This, Mr. Mooreman said, although Congress had expressly children damage to national parklands in recent developments on the Colorado River, the Bureau of Reclamation visited the nonappropriation of money for a relainer dam into authorization for the flooding of terrain around the Rainbow Bridge National Monument.

The 1879 act establishing the Forest Service said that any trees to be cut and sold had to be "manned and designated." This inhibited clear cutting (telling all trees in a large area) because of the trouble involved in marking each tree.

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A. The seat you'll be sitting in is now contoured to make long flights seem like short flights.

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C. If you're carrying a garment bag or coat with everything neatly pressed, it'll stay that way in our seat divider wardrobe. It also makes it easy

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Our wide-body Whisperliner: another way Eastern is working harder for your dollar.

For reservations call 986-5000 in New York or 621-2121 in New Jersey. Or call your travel agent. You're in for a most impressive flight.

Fly Eastern's Whisperliner to: Acapulco, Boston, Ft. Lauderdale, Miami, Mexico City, Montreal, Orlando, San Juan, Tampa and West Palm Beach.

EASTERN The Wings of Man.

THE WASHINGTON POST

Tuesday, Feb. 12, 1974

A3

# Directors to Dig for Heat

The public lands sought have suspected or known geothermal areas within their borders. The riskier gamble on the suspected areas requires only $50 along with the application. The known geothermal resources require a money bid, and the base is supposed to go to the highest bidder.

The 2,456 noncompetitive lease applications for suspected areas cover 5.3 million acres of public land in Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.

The 57 competitive bids were for three active geothermal areas in California—a geyser region in the northern part of the state; Mono-Long Valley in Central California, and the East Mesa in the Imperial Valley.

Shell Oil Co. bid the highest amount of any of the bidders —$3.2 million for 2,340 acres in the geyser area. Dry steam is already producing electricity in commercial wells dug just outside the public-lands area put up for lease. Shell intends to use the steam to produce electricity as well.

Dr. Charles S. Matthews, a petroleum engineer for Shell, said yesterday that the steam is believed to be from 3,000 to 9,000 feet deep in the ground.

Steam coming up through the 100 wells already in the geyser field turns generators that produce about 400 megawatts of electricity—enough to supply a city of 400,000 people.

Besides producing electricity, the steam and hot water under the ground can be used—and has been used in some

areas—to heat the homes in a town.

Despite all the fresh interest in geothermal energy—including bidders' willingness to put up millions for leases on promising areas—Interior officials warn that the earth's hot steam, water and rock should not be counted on to supply more than 2 per cent. of the

nation's electric-power needs in the year 2000.

But, a geothermal specialist at Interior said yesterday, the United States knows as little about geothermal energy today as it did about oil in the year 1900. So the enthusiastic prospectors may find more than official expectations suggest.

# Subpoena for Nixon
Delayed in the Mail

LOS ANGELES, Feb. 11 (AP)—A state judge said today that he was speechless when he learned that a subpoena he issued on Feb. 4 for President Nixon to appear in his court had not yet found its way through the mail to Washington.

Superior Court Judge Gordon Ringer, who issued the unprecedented subpoena of a President, had his clerk contact the local post office and get a tracer put on the envelope—sent Feb. 4 by registered mail.

In Washington, the White House said it had not yet received the subpoena, which Mr. Nixon's attorneys have said he would not honor.

The subpoena, issued at the request of former presidential aide John D. Ehrlichman, commands the President to appear at a Feb. 25 pretrial hearing for Ehrlichman, G. Gordon Liddy and David Young. The three are charged with burglary and conspiracy in the 1971 break-in at the office of Daniel Ellsberg's psychiatrist.

They want Mr. Nixon to testify as to the formation of the secret White House investigations unit that became known as the plumbers, who engineered the break-in at the psychiatrist's office.

Los Angeles Postmaster James J. Symbol said the non-delivery of the subpoena was not normal. He said most registered mail moves more slowly than regular mail, because of security precautions and because it is delivered only during daylight hours. But he said that the average registered letter is delivered within two or 2½ days from the time it is mailed.

NOW IN PROGRESS

## men's
AFTER-INVENTORY
CLOTHING
CLEARANCE!

Marquis Childs

Wash POST 2-12-74

# Dr. Kissinger: A Man Walking a Tightrope

Henry Kissinger is like a man crossing Niagara Falls on a high wire. From either bank his enemies are throwing everything from rotten apples to old shoes at this lonely figure balanced precariously over the abyss.

Jealousy, resentment, old grudges, just plain hatred—these are some of the motives of those who would like to bring him down. To this must be added a kind of death wish to see the whole Nixon show collapse. His enemies, as well as his loyal friends, realize that he is almost the only strong point still remaining.

The suspicion is current that the "German mafia"—H. R. Haldeman and John Ehrlichman—with their allies in the "plumbers" unit, are feeding out the whispered accusations. They have fallen and may be on the way to prison while this alien, this outsider, not only survives but has achieved for his diplomatic triumphs the stature of a hero. This is enough to set them intriguing for revenge.

There is nothing new in this thirst for revenge nor in the intrigues. The difference is that the insiders are now on the outside with their desire to get even greater than ever. How much harm can they do, how much they can surface that will seem injurious, is an unknown quantity.

Kissinger's survival for five years in the Byzantine intrigues of the White House is in itself a small miracle. The atmosphere was a cross between Kafka and Little Orphan Annie with a pious facade out of J. Walter Thompson and the blessing of Billy Graham. In surviving, Kissinger's foot work then must have been agile.

The imponderables the Secretary of State contemplates as he balances on the high wire are a catalogue of ifs, maybes and buts. If the Syrians can be persuaded to disengage and return their Israeli prisoners, then the Middle conference at Geneva will at least get off the ground. But not even the boldest prophet would say what will happen after the conferees sit

down around the table. There are plenty of gloomsters predicting total deadlock.

The oil embargo may be lifted. But, if this happens, what about the doubling and tripling of prices? Kissinger believes this is a more serious issue than the embargo. Forced to pay these prices, the devoloping nations will be pushed over the economic brink, possibly triggering a world wide depression.

The biggest "if" of all is whether the detente with the Soviet Union will hold and whether, within that framework, a SALT II agreement limiting offensive nuclear weapons can be negotiated. So Kissinger is going to Moscow next month to prepare the way for President Nixon's meeting with party Secretary Leonid I. Brezhnev in June.

For the long term, the outcome turns on Congress and public opinion with increasing evidence of a new isolationism. If the framework of detente falls a great deal falls with it at a cost that generations still to come may be

paying. This is inherent in the threat of a new nuclear arms race. In a respondent moment, Kissinger once remarked that the American people behave as though they had won the grand prize in the international lottery and could do whatever they wanted to.

These are a few of the burdens the high wire artist carries. He flew to Panama to give the possible new settlement of the dispute over the Panama Canal a shove.

Yes, his detractors say, but he loves power. He has a giant size ego that must be constantly massaged. Working for him is like pulling the chariot of a Roman emperor in a triumphal procession.

I say, what of it? This man who has proved such a consummate diplomat deserves some compensation. Certainly he has made errors, errors of judgment, errors of human misunderstanding as who has not. But, when that is said, ask one question: Where would we be if it were not for Kissinger?

© 1974, United Feature Syndicate

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# U.S. Laying Groundwork For Syrian-Israeli Talks

By BERNARD GWERTZMAN

Special to The New York Times

WASHINGTON, Feb. 9—The United States has begun exchanging ideas with Israel and Syria to find a formula for the start of Syrian-Israeli negotiations on the separation of their troops and on the issuance by Syria of a list of Israeli prisoners, senior State Department officials said today.

The officials said that Secretary of State Kissinger, who served as the intermediary in the Egyptian-Israeli disengagement talks, had taken an active role in the Syrian phase of discussions.

## Oil Producers to Meet

Mr. Kissinger has also carried on an active exchange with Arab leaders, stressing the importance the United States attaches to the lifting of the oil embargo against this country.

In his messages, Mr. Kissinger was reported to have said that continuation of the embargo would be "unjust and improper" given the American role in bringing about the

Egyptian-Israeli disengagement agreement.

The Arab oil producers are to meet in Tripoli, Libya, on Thursday to discuss the possibility of lifting the embargo, and the Nixon Administration has decided to press its case as forcefully as it can.

Mr. Kissinger last Wednesday asserted that continuation of the embargo would be "a form of blackmail" and would affect the American negotiating attitude.

Officials said that Mr. Kissinger recognized that he ran risks in publicly calling attention to the Tripoli meeting in that fashion. But he is said to believe that a tug-of-war is going on between radical and moderate Arab leaders over the embargo and that it is im-

Continued on Page 15, Column 1

35

Oil Consumers Parley Opening on Shaky Note

CONFER, From A1

France is determined to
have the Western European
nations avoid any action in the
Washington conference that
might impair their own free-
dom of maneuver in dealing
with the Arab nations. To
some degree, that outlook is
shared by the other Common
Market nations. In the Middle
East, Jobert emphasized last
week that the Common Mar-
ket nations plan to meet in
April to "make an offer to the
Arab states to organize a
meeting between these states
and the European states on
the foreign ministers' levels."

Participants in the two-day
conference here are the
United States, Canada, Japan,
Norway and the nine Common
Market nations—France, West
Germany, the Netherlands,
Great Britain, Italy, Denmark,
Ireland, Luxembourg and Bel-
gium.

Canada's Sharp told news-
men yesterday, after his talk
with Kissinger, that the con-
ference cannot settle any
problems. "The best we can
hope for," he said, "is an expo-
sure of the problems," but he

said that is of considerable im-
portance. Sharp also said that
Kissinger hopes to visit Can-
ada next month for general
discussions of U.S.-Canadian
issues.

About 100 delegates from
the 13 participating nations
worked through the morning
and afternoon at the State De-
partment yesterday on an
agenda and other procedural
matters, under the chairman-
ship of William H. Donaldson,
American under secretary of
state for security affairs.

As a result of considerable
debate, and French insistence,
the conferees agreed on the
lowest - common - denominator
for the agenda: "1-Opening
remarks. 2-The energy situat-
tion and its implications. 3-
Initiatives for international
cooperation; examination of
new proposals. 4-Communi-
que."

The United States had
sought agreement on specific
topics: conservation of energy;
expanding conventional en-
ergy sources; cooperation in
energy research and
development; oil sharing in
emergencies; international
monetary cooperation; prob-
lems of poor countries caused
by rising oil prices; future rel-

ations between oil consumer
and oil producer countries.

In addition, the United
States wanted agreement in
advance to divide the confer-
ence into four working groups,
with the agenda subjects di-
vided among foreign minis-
ters, finance ministers, energy
officials, and a fourth group,
science and technology offi-
cials. Agreement on this too
was blocked, with the subject
left for the conference itself
to decide.

Nixon administration offi-
cials sought to minimize the
limitation of the agenda that
was agreed upon as a technical
matter of no great signifi-
cance. "This agenda should be
viewed as sufficiently close to
the language we put forward
to permit going ahead with all
subjects," said a senior U.S.
official.

According to European
sources, however, the French
are not by any means alone
in their determination to op-
pose a major substantive issue
publicly described by Secre-
tary Kissinger as the explora-
tion of "general rules of con-
duct" to govern bilateral oil
deals.

The Dutch and other Euro-
pean nations are reliably re-
ported to regard an attempt to

devise any consumer nation
"code of conduct" as an ex-
plosive move that will expose
the industrialized nations to
charges that they are engaged
in a "consumer gang up"
against the Arab oil producers.

U.S. officials, generally
aware of the sensitivity of oth-
er nations on this issue, said
in advance of the conference
that they do not expect this
issue to be resolved in the
two-day meeting, but only dis-
cussed. The problem of for-
mulating an actual "code of
conduct," as American offi-
cials projected it, would be
passed to a working group.

Even this approach aroused
strong objections yesterday
from Common Market nations.
Any "rules of conduct" for na-
tion-to-nation oil deals should
be left for discussion at the
projected conference between
producing and consuming na-
tions, one European diplomat
said emphatically.

There is suspicion among
the Europeans that by advo-
cating such a code, or curbing
"bilateral deals," the United
States seeks to protect the
special position of American
oil firms in the Middle East,
particularly Aramco in Saudi
Arabia. U.S. officials vigorous-

ly deny that this is the Ameri-
can objective. Kissinger said
last week, "Our concern about
bilateral deals is that they
tend to support a price which
is ruinous first to the nations
making them and generally to
the world economy."