SHAH PROPOSES WORLD OIL PRICE

Press, Volume CXIV, Issue 33650, 27 September 1974, Page 1

SHAH PROPOSES WORLD OIL PRICE

(N’eu? Zealand Press Association—Copyright) CANBERRA, September 26. The Shah of Iran today proposed one fixed world price for oil, related to an index of prices for 20 or 36 other commodities.

i Speaking at a National i Press Club luncheon in Canberra today the Shah said that Iran was I ready for serious talks .on the subject. I The price would also have | to take into account geo- ; igraphical location and the quality of oil, he said. His proposal came after a question on President! Gerald Ford’s warning on Monday to Middle East oil-1 producing nations of repris-

als if they refused to lower prices. President Ford said that sovereign nations could not allow their policies to be dictated, or their fate decided, by artificial rigging and distortion of world commodity markets. “Not acceptable"’ The Shah said today that! he had not yet seen anl official text of President; Ford’s remarks, but if what; was reported was correct,! they were not acceptable to Iran. Iran was ready to use its energy resources against i companies such as General! Motors, Westinghouse, and General Electric. The Shah noted that the posted price for a barrel of; Persian Gulf oil had been re-1 duced bv the oil companies from $2.17 in 1947 to $1.79; in 1959. During the same] period the price of other

world commodities had increased 300 to 4<)o times. “That was really exploitation of our resources—which are not interminable—by the industrial countries to build up their wealth and even their societies on our cheap oil. “They are selling their wheat, sugar, steel, vegetable oil and so on at the prices that they fix. “We have nothing to say on those prices. They say ‘take it or leave it.’ We have to take it,” he said. Help oil cred The Shah said that if some economies were sick, it was not Iran’s fault. “But nevertheless we would be glad to help some economies which are not going too well," he said. “We have proved that by lending money to some countries and going to the assistance of athers.”