YAKUTSK AND NORTH STAR LNG PROJECTS

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-38-2-27-8
• Release Decision: RIFLIM
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: January 11, 2017
• Document Release Date: November 8, 2012
• Sequence Number: 27
• Publication Date: August 20, 1973
• Content Type: MEMO

- No Objection to Declassification in Full 2013/03/22: LOC-HAK-38-2-27-8
NATIONAL SECURITY COUNCIL.
WASHINGTON, D.C. 20506
CONFIDENTIAL H August 20, 1973
MEMORANDUM FOR:
The Honorable William T. Casey
The Honorable William E. Simon
Mr. Kenneth Dam
Mr. Charles DiSona
Mr. Peter Flanigan
Mr. Samuel Hoskinson
.Mr. Stephen Wakefield
Mr. John Sawhill
Mr. Stan Katz
SUBJECT: Yakutsk and North Star LNG Projects
Dr. Kissinger has asked the Committee on International Aspects o
Energy to conduct a study of the national security, economic and
foreign policy aspects of the proposed Yakutsk and North Star LNG
projects.
The study should assess the current status and likely future develop-
ment of these projects. Special attention should be given to the role
the 'U. S. government may be asked to play by the companies and to
resultant issues that would have to be decided.
The stu.dy should examine the general national security and foreign
policy issues involved and, where applicable, the options. For
example, the study should address:
-- The national vulnerability arising from dependence on the
projected quantities of Soviet LNG.
-- The effect the projects could have on U.S. -Soviet and U.S. -
Japanese relations, with particular emphasis on the implications for
U.S. -Japanese relations of various participation arrangements
currently under consideration.
-- Technical issues, including questions of technology transfer.
NSS review completed.
CONFIDENTIAL
GDS
Classified by Philip A. Odeen
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CONt-Lut;IN'ElA Li
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-- Economic issues, i.ncluding the balance of payments and cost
Implications and the effect of domestic deregulation. Insofar as
possible,, the likely economic feasibility of the prospect should be
included in terms of probable future gas prices and demand levels;
-- Financial questions, including those relating to possible Export-
Import Bank credits and loan guarantees, LNG tanker ownership and
possible Ivlaritirue Ac.lministration financing and guarantees; and,
-- Likely Congressional attitudes toward the projects and toward
alternative USG actions on the above issues.
This study should be undertaken by an ad hoc committee composed of
your representatives and chaired by a representative of the NSC staff.
An initial report should be submitted by September 15, 1973.
PhilipA. Odeen
Director, Program Analysis
CONFIDENTIAL
No Objection to Declassification in Full 2013/03/22: LOC-HAK-38-2-27-8
No Objection to Declassification in Full 2013/03/22: LOC-HAK-38-2-27-8
4IP IP
NATIONAL SECURITY CO CIL
WASHINGTON. D.C.
CONFIDENTIAL
4036
MEMORANDUM FOR: DR. KISSIN ER
FROM: 61-ILL ODEEN ALSONNENFELDT
SUBJECT: Yakutsk and North Star LNG Projects
In our earlier memorandum we provided you with a status report on
the Yakutsk and North Star LNG projects. As we noted, these projects
raise a number of issues which will have to be addressed in the USG.
We understand that the U.S. companies involved in the projects are
likely to come in soon to ask for Ex-Irn Bank credits and loan guaran-
tees. Thus, we will have to make some decisions in the near future.
There would have to be Congressional hearings on the project to clear
the Ex-Im Bank financing as well as Maritime Administration guaran-
tees for construction of the LNG tankers. The projects are likely to
be criticized in Congress, in part for security reasons and in part
because the funds alternatively could be used to exploit domestic energy
sources.
Given the problems we face with the two projects and the likelihood that
we will soon be faced with decisions on them, we believe an in-depth
study of the projects should be undertaken promptly. The study would
cover the technical, economic and foreign policy implications Of the
projects.
There is some work going on in bits and pieces on these implications
by Treasury. Governor Love and others. However, because of the
major foreign policy ramifications of the projects, we believe the best
way to carry out an overall study would be to commission an ad hoc
group under the Committee on International Aspects of Energy which
Phil Odeen chairs. We recommend you approve the initiation of such
a study, along the lines of the attacked study directive (Tab A).
Approve
Governor Love 'concurs.
CONFIDENTIAL
Disapprove
GDS ? Classified by Phil Ocleen
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No Objection to Declassification in Full 2013/03/22: LOC-HAK-38-2-271-8
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No Objection to Declassification in Full 2013/03/22: LOC-HAK-38-2-27-8
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No Objection to Declassification in Full 2013/03/22 : LOC-HAK-38-2-27-8