INFORMATION ITEMS

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-550-2-11-6
• Release Decision: RIPLIM
• Original Classification: T
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: October 22, 2010
• Sequence Number: 11
• Publication Date: October 14, 1974
• Content Type: CABLE

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No Objection to Declassification in Part 2010/10/22: LOC-HAK-550-2-11-6
111P
TOZ. SECRET
C 14 . 3Z OCT 74 1FF-1 ptH
Fj TRE SITUATION POOM
IO AMEMBASSY CAIRO
;
TOPSEChET SENSIT E CONTAINS CODEWORD
DELIVER AT OPENING OF BUS NESS !31H42 79 1
T3MAK 46
ON-FILE NSC RELEASE INSTRUCTIONS APPLY
DAMS/BREMER FOR THE SCRtTARY
()OMER 14, 1974
FROM THE $ITUATION ROOM
TO SECRETARY KISSINGER
SUBJECT INFORMATION ITEMS
DOS Review Completed.
INTERNATIO AL OIL DEVELOPMENTS: SAUDI ARABIA AND IRAN HAVE
REVEALED THEIR PLANS FOR IMPLEMENTING TRE OPEC DECISIONS
REACHED AT QUITO AND VIENNA. SAUDI ARABIA WILL PROBABLY
INCREASE THE PRICK OF AN AVERAGE BARREL TO ABOUT $10.00,
AND IRAN HAS SUGGESTED THE AVERAGE COST PER BARREL OF ITS
OIL WILL RISE TO ABOUT $9.92. TRE RECENT PRICE INCREASES
HAVE RAISED THE AVERAGE ?RICE OF PERSIAN GULF OIL IN THE
FOURTH QUARTER of 197A TO NEARLY $10.00 PER BARREL,. A YEAR
AGO THE AVERAGE PRICE WAS ABOUT $2 PER BARREL. THE OPEC
COUNTRIES WILL EARN MORE THAN $100 BILLION FROM OIL EXPORTS
IN 1974 AS OPPOSED TO ABOUT $30 BILLION IN 1973. BECAUSE
OF PAYMENTS LAGS, THEY WILL ACTUALLY RECEIVE ABOUT $94
BILLION IRIS YEAR RR $33 BILLION IN TRK FIRST HALF AND
$61 BILLION IN THEECOND HALF. OIL RECEIPTS WILL BE
600STED BY ANTICIPATED RETROACTIVE PAYMENTS OF ABOUT $13
BILLION. RECEIPTS WILL BULGE IN OCTOPER AS A RESULT OF
QUARTERLY PAYMENTS TO SEVERAL PRODUCERS AND A PROBABLE
$2.2 BILLION RETROACTIVE PAYMENT TO SAUDI ARABIA. FREE
WORLD OIL SUPPLY DURING SEPTEMBER .IS EXPECTED TO BE ABOUT
THE SAME AS IT WAS 14 AUGUST. LIBYA AND ABU DHABI CUT
PRODUCTION AbOUT HALF A MILLION BID AS A RESULT OF REDUCED
OIL COMPANY LIFTINGS. THIS DECREASE WAS PROBABLY OFFSET,
HOWEVER, BY INCREASED PRODUCTION IN SAUDI ARABIA OF ABOUT
54000o 8/D. EXXON IS NOW TRREATENING TO CUT ITS LIBYAN
PRODUCTION EVEN MORE BECAUSE IT CANNOT SELL THE NATURAL JA
IT MUST PRODUCE ALONG WITH CRUDE OIL Al THE PRICE LIBYA WANTS.
LIBYA HAS REFUSED EXXON PERMISSION TO FLARE THE ASSOCIATED
GAS, AND IT IS NOT ECONOMICALLY FEASIBLE TO REINJECT IT
INTO THE WILLS. IF EXXON AND THE LL8YAN GOVERNMENT DO , TOP SECRET
or COME TO AGREEMENT EXXON 41 ILL SHUT IN ITS REMAINING
psoou CT 1c "No^oblealon-G-DeCGSsification in Part 2010/10/22: LOC-HAK-550-2-11-6
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? No Objection to Declassification in Part 2010/10/22: Loo-RIAK-550-2-11-6
P01M3AL: L.1:? f)urobilh r AL IL IV N a ClZA 0:wuL;r4: mo. n?lt
SON L'..,PORTEli T4,17 HE HArITUITI T wITq uf.-- THE mew
DI2Titeipi3HFD w4E1 TRVJVOPTHY tWOINESNENiT
THE TOUPIST iNDIfl.ITFY WHO (AF JUST iiETUreAD ;TOM LONDON,
,4AERE RE HAD MEI WITH A .GROUP OF RRITISH DANXERS. THE
-aANKERS VIEW PORTUGAL'S FUTURE WITH THE GREATEST RESERVE
AND FEAR. BECAUSE OF THE EVIDENT POLITICAL INSTABILITY
? AND THE GROWING ECONOMIC AND SOCIAL CRISIS, TO JUSTIFY
THAT POSITION THEY SAID THAT PORTUGAL'S BALANCE OF PAY-
mENTS, MADE WORSE EY AN ACCENTED DEFICIT INTO COMMERCIAL
TRANSACTION, WILL NOT BENEFIT, IN THE CURRENT FISCAL YEAR,
FROM THE NORMAL INCOME OF FOREIGN EXCHANGE FROM TOURISM AND
FkOM THE FINANCIAL REMITTANCES OF EMIGRANTS*
FURTHER TURKISH MOVES TO SOLIDIFY CONTROL IN NORTHERN
CYPRUS: TURKISH OCCUPATIONIFORCES ON CYPRUS MAY BE BUILDING
PERMANENT FORTIFICATIONS ACROSS THE SOUTHERN EDGE OF THE
TERRITORY THEY INTEND TO RETAIN IN ANY SETTLEMENT. AN
INTERCEPTED GREEK FOREIGN MINISTRY MESSAGE DISCLOSES THAT
THE CONCRETE DEFENSIVE WORKS GENERALLY FOLLOW THE FIRST
ATTILA LINE AND EXCLUDE THE CITY OF MORPHOU AND THE 1M-
PORTANT TYMBOU AIRFIELD. A SENIOR TURKISH SECURITY OFFICIAL
? CONFIRMS THAT FORTIFICATIONS ARE BEING BUILT ON THE
PERIMETER OF TURKISH-CONTROLLED TERRITORY AND ADDS THAT THEY
GIVE SOME INDICATION OF WHAT TERRITORY THE TURKS WILL INSIST
ON RETAINIs
IN OTHER MOVES TO STRENGTH N TURKISH CONTROL IN THE NORTHERN
ZONE: TURKISH CYPRIOT CIVIL SERVANTS THIS WEEK RECEIVED THEIR
SALARIES IN TURKISH LIRA. SINCE CIVIL SERVANT SALARIES COM-
PRISE THE BULK OF THE TURK CYPRIOT ECONOMY, TURKISH LIRA
WILL HENCEFORTH SE THE COIN OF EXCHANGE IN THE NORTHERN ZONE.
? THE MAINLAND TURKISH AGRICULTURAL BANK WILL FUNCTION AS THE
TURK CYPRIOT CENTRAL BANK AND FOREIGN EXCHANGE CONTROLS
IDENTICAL TO THOSE IN FORCE ON THE MAINLAND HAVE BEEN
INTRODUCED.
THE AUTONOMOUS TURKISH ADMINISTRATION HAS FORMALLY
ESTABLISHED TURK CYPRIOT AIRLINES, TURK CYPRIOT TELEVISION)!
AN ARCHEOLOGY DIRECTORATE, AND RURAL CONSTABULARY. A
CITIZENSHIP SILL HAS BEEN INTRODUCED, TELECOMMUNICATIONS
PROJECTS ANNOUNCED, CORPORATIONS RE-REGISTERED, AND OTHER
ECONOMIC INSTITUTIONS SUCH AS CO-OPS GIVEN ADDITIONAL
,POWERS.
AMBASSADOR CRAWFORD CONCLUDES FROM ALL THIS THAT THE TURKS
DO NOT ANTICIPATE AN EARLY POLITICAL SETTLEMENT AND ARE
PLANNING FOR THE LONG HAUL* HE ADDS
THAT WHILE DISCLAIMING INTENT TO PARTITION THE ISLAND,
TURKISH ACTIONS SINCE THE CEASEFIRE HAVE LED PRECISELY IN
THAT DIRECTION. THE AMBASSADOR STATES REORGANIZATION OF MIN-
ISTERIAL RESPONSIBILITIES AND THE APPOINTMENT OF MINISTERS
FROM THE MAINLAND SEEM DESIGNED TO INSURE THAT THE
AUTONOMOUS TURKISH ADMINISTRATION WILL BE TOTALLY MALLEABLE
TO ANKARA'; WILL. (GATES)
667
5979
20P:SECRET
No Objection to Declassification in Part 2010/10/22: LOC-HAK-550-2-11-6