JAPAN FEARS FOR OIL

Press, Volume CXIII, Issue 33384, 16 November 1973, Page 9

JAPAN FEARS FOR OIL

(N.Z. Press Association—Copyright I TOKYO, November 15. Ihe Prime Minister (Mr Kakuei Tanaka) today told the I nitvd States Secretary of State (Dr I lenr\ Kissinger) that because of the Arab oil squeeze Japan faced its most critical economic situation since \\ orld War 11.

Dr Kissinger also was given a preview of the steps the world's number one oil importing nation will take to cope with an estimated 20 ; per cent reduction in crude oil imports from all sources next month. ! Dr Kissinger’s meeting with IMr Tanaka at the Prime Minister’s official residence came after a breakfast with the Finance Minister (Mr Kiichi [Aichi) at which the same points were made. Last night [it was the turn of the Foreign Minister (Mr Masayoshi Ohira) to tell the United States official of Japan’s uneasy situation.

The question is. what the United States can do to ease Japan’s burden except to point out that Dr Kissinger [has prodded the Arabs and Israel toward negotiations that could lead to a Middle East settlement. Some American businessmen here expect Japan to switch from its neutral position toward favouring the Arabs, perhaps by breaking relations with Israel. However, the Government has repeatedly said that it would not take so drastic a step. With only a little coal and virtually no domestic oil, nat-[ ural gas or uranium production, Japan depends on for-; eign sources for 85 per cent of its total energy supply and 99 per cent for petroleum. Mr Tanaka emphasised that Japan would forge its own [Middle East policy independently and that whatever changes took place would be without prior consultation with the United States. He made it clear he is ask-; ing for advice and informa-) tion as a friend and major! business partner. Dealing with the oil problem, Japan’s National Federlation of Oil Dealers’ Associations has decided to close al) 43,000 gas stations run by its [members throughout the 'country on Sundays and! 'national holidays, starting [with Labour Thanksgiving [Day a week from Friday. Business hours on week days! will be shortened. [ Besides briefing the Japan[ese on the Middle East situation, Dr Kissinger is proividing an account of his visit [to China and the new United ■ States-Chinese communique, ias well as the status of the [proposed new Atlantic part[nership which would include a major role for Japan. In Peking, Dr Kissinger and Chinese leaders agreed [to move closer to full diplomatic relations, improved; [business, cultural and scientific ties and to declare their

'opposition to moves by any nation or group of nations to dominate the Middle East. Asia, or any other region of the world. Libya. meanwhile. has given rise to hope that it may become a new source of supply. The Libyan Ambassador (Mr Hassan Bukresi asked yesterday for Japanese technical co-operation to build steel mills, oil refineries, and petrochemical plants. At present Japan buys little Libyan oil. A joint venture could open untapped deposits for this pressed nation.