(SANITIZED)

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-207-2-33-3
• Release Decision: RIPLIM
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: October 31, 2012
• Sequence Number: 33
• Publication Date: January 22, 1974
• Content Type: MEMO

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No Objection to Declassification in Part 2012/10/31 : LOC-HAK-207-2'-33-3 /45-AA/
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'CaNTRAL INTEL GENCY
WASHINGTON, D.C. 20505
22 January 1974
MEMANDUM FOR: The Honorable Henry A. Kissinger
Assistant to the President for
National Security Affairs ?
SUBJECT: Arab Oil Policy
. 2.' President Sadat conveyed the following to Saudi ? ,
Arabia on. 18 January 1974. All Arabs (notjust Saudi Arabia)
should agree to grant the United States "most favored'natioe
? sttuF, in oil supply "coincidental with disengagement". Sadat
will visit all the Arab states, including Kuwait, the Gulf,
. Algeria and Morocco to explain why this gesture is justified-
!Ahen?he has obtained the approval of the other Arabs, he Will
report heck to King Faysal. At that time, a meeting of the
Arab oil ministers can be called immediately toendorse this ?
decision. Sadat said he had told Dr. Kissinger what he planned
to do, and Dr. Kissinger has agreed that "most favored nation"
status (equal to Britain and France) would be perfectly satis- ?
factory to the United States. Dr. Kissinger also understands
diplomatic mission and for .0nother oil ministers' conference
(sentence. garbled, as receiVed).
3.? The Saudis have decided that for reasons of techni-
cal convenience, combi*d with their desire to achieve maximum
Favorable political impact in the United States, they will ad-?
.;(ocate a different formula;; immediate total lifting of the oil
boycott (on everyone) and return to September .production levels
for afi>c period of 90 days:. After that, the boycott would be.
reimposedif "satisfactorya! progress is not being rilade..
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4. On Monday night, ':21 January, 1974, the Supreme
ritroleum Council took a decision approving this course, and
MORI/CDF C03207107
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on the nlol-ning of 22 January 1974 the King signed an instruc-
tion authorizing Zaki Yamani to support either of two posi-
tions at the next oil ministers' conference: Sadat's formula
Cr granting WN" status to the U.S. alone, or the alterna-
t:ve Saudi formula for total lifting for a limited period of
93 days. Saudi Arabia would abide by majority PreFerence.
5. Yamani's trip to Japan has been held in abeyance
te'l!porarily, and he is going to Europe today on another short
errand.
6. Adham made the -comment that the foregoing infoma-
tion indicates clearly that both Sadat and Faysal are trying
to .Jet the embargo lifted as fasts is humanly Possible,
given two essential requirements: completion of Sadat's?dip-.
loilatic mission to the other Arab states to persuade. them .
that the embargo Must now be lifted; and calling of another
meeting of Arab oil ministers to give the action :their offi-
cial approval.. Adham pointed out that the next regularly ?
scheduled (repeat regularly scheduqed) Arab oil ministers'
meting will be 14 February. He said that there is every re-
Son in the world, however, to expect that if Sadat completes..
his Arab' tour today or tomorrow, an extraordinary meeting of.
the oil ministers could take place on Saturday or Sunday and
President Nixon could announce the end of the oil embargo to ?
the Congress in his State of the Union speech next week. '
Karnal Adham stressed again :that the King was agreeing to sup-
port the lifting of the embargo despite (repeat despite) the
fact that the disengagement agreement failed ? to mention Jeru-
salem; he was doing this because Anwar Sadat had assured ? him
?of two things: the Americans were sincere in their intention
to pursue with equal energy every step toward "full imple-? ?
mentation. of SC 242" (which by Saudi terms means denial of
Israeli sovereignty over old (formerly .Jordanian) Jerusalem))
and second, that Sadat would take it ogn himself to mobilize
an Arab majority behind King Faysal's decision to lift the
embargo.
W. E. Colby
Director
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No Objection to Declassification in Part 2012/10/31 : LOC-HAK-207-2-33-3