OWENS-ILLINOIS - VENEZUELA

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-284-13-3-9
• Release Decision: RIFLIM
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: September 22, 2009
• Sequence Number: 3
• Publication Date: December 14, 1976
• Content Type: MEMO

No Objection To Declassification 2009/09/22: LOC-HAK-284-13-3-9
PARTICIPANTS:
December 14, 1976
Brent Scowcroft, Assistant to the President
for National Security Affairs
William Spengler, President Owens-Illinois,
International Division
John Andrews, Washington Representative
for Owens-Illinois
David Lazar, NSC Staff
Mr.,Spengler used the meeting principally to update General Scowcroft
on the current Owens-Illinois situation in Venezuela. He said that the
Government of Venezuela had asked 0-I to build, at Government expense,
two new furnaces to increase the capacity of the present 0-I facility in
that country. The estimated cost would be about $45 million. Mr. Spengler
said that 0-I had made a counter-proposal under which the new furnaces,
when built, would be offered for sale to the "private sector" (i. e. Owens-
Illinois) so that the resulting package would be owned 51% by the GOV,
49% by 0-I. (Comment: It was not clear whether O-I's counter-proposal
related only to the new furnaces or to the entire facility as expanded by
them but, in context, the latter seems probable. j
According to Mr. Spengler they have discussed this proposal with Laria
who so far says "maybe". Mr. Spengler pointed out that the risk to 0-1
of passing their technology to the Government of Venezuela without being
paid for it (the $45 million would include costs and fees to 0-I but nothing
for the technology involved in the furnaces) is offset to some extent by
the fact that the furnaces would take two years to build during which time
0-1 would be taking dividends out of the country on their present investment.
of Section 24 of the Andean Code) had taken $3 million in dividends out of
Mr. Spengler said that 0-I this year, for the first time (under the impetus
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
No Objection To Declassification 2009/09/22 : LOC-HAK-284-13-3-9
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MEMORANDUM OF CONVERSATION
 No Objection To Declassification 2009/09/22: LOC-HAK-284-13-3-9
CONFIDENTIAL /GDS
Venezuela and would anticipate a like annual dividend for the next two
years. Mr. Spengler indicated that 0-I probably will go ahead with
the construction of the new furnaces.
Mr. Spengler said that arbitration of the nationalization problem still
is supposedly in the game but indicated his opinion that the GOV
eventually will back away from arbitration.
General Scowcroft said that, although we didn't pretend to know the
intentions of the Venezuelan Government, we find this new initiative
on their part a hopeful sign.
Mr. Spengler touched on the Niehous matter. While not denigrating
the efforts of the Venezuelan Government to find Mr. Niehous, he
did express the wish that they had been. and were more capable. He
also expressed the hope that the State Department would not let this
matter drop but would keep reminding the Venezuelan Government of
it. General Scowcroft assured him we would stay in touch with State
on this. Mr. Lazar pointed out that the Venezuelan Government had
strong reasons of its own for wanting to find Mr. Niehous and solve
the case.
Mr. Spengler said there was no action that Owens--Illinois wanted of
the U. S. Government now but that he had only wished to bring us up
to date. The meeting ended at 1:40 p.m.
No Objection To Declassification 2009/09/22 : LOC-HAK-284-13-3-9