’Huge’ U.S. energy plan

Press, 3 July 1979, Page 8

’Huge’ U.S. energy plan

NZPA Washington President Jimmy Carter will announce soon a “massive” long-term programme to tap the country’s "enormous” energy resources other than oil and to step up efforts to compensate for the effects of the new rise in oil prices, Vice-President Walter Mondale has said. In a television interview, Mr Mondale said the programme would be financed by an oil-profit tax. In the short term, the Vice-President said he hoped an agreement would be reached on delivery of Mexican petrol to the United States before the summit r eeting soon between President Carter and the Mexican P-esident (Mr Lopez Portillo).

American business leaders have welcomed the steps taken by the big Western industrial countries at the

Tokyo summit meeting to limit their oil imports in the wake of the Organisation of Petroleum Exporting Countries’ increases. Robert Anderson, board chairman of the Atlantic Richfield Oil Company, said the Tokyo agreement would f the first time put pressure on O.P.E.C. not to raise prices. And the chairmen of three other corporate giants — General Motors, U.S. Steel, and Du Pont — said they did not believe the O.P.E.C. increases would plunge the United States economy into recession. But all three spoke of an economic “slowdown.”

“If we staj by our Tokyo commitments. I think it’s going to put some very interesting downward pressure on O.P.E.C. for the first time,” Mr Anderson said in a television interview. Meanwhile, Arab oil

States are prepared to invest in a $500,000 million plan for developing alternative energy sources in Europe, the O.P.E.C. senior executive has said. Dr Mana Oteiba, president of O.P.E.C. had been asked about possible Arab investment in the proposed scheme in an interview with “An-Nahar” Arab Report and Memo, a Beirut weekly newsletter.

He gave no indication of how much the Arab Sates might be willing to provide, but he said: “Several years ago we began consultations with European nations, particularly with solar energy in mind.”

Dr Guido Brunner, Energy Commissioner of the European Common Market recently unveiled proposals for spending $50,000 million annually for 10 years to develop alternative energy sources in Europe.