Carter energy aide quits

Press, 11 July 1979, Page 8

Carter energy aide quits

NZPA-Reuter Washington On of the Carter Administration’s senior energy policymakers has resigned, just as President Carter was summoning a fresh group of advisers to his mountain retreat in an effort to find a solution to the oil crisis.

Th Deputy Energy Secretary (Mr John O’Leary) submitted his resignation after coming under fire from the White House for his outspoken views, particularly during the week of long talks at. the Camp David Presidential retreat on a new national energy programme. Some White House aides are reported to have urged Mr Carter to seek the resignations of both Mr O’Leary and the Energy Secretary (Mr James Schlesinger) as part of a serious departmental shake-up. Mr O’Leary was reported to have told the White House that he would resign unless internal criticism of him was stopped. But he was apparently still under fire in the last few days, and C.B.S. television quoted him as saying in his letter to Mr Carter: “I would appreciate if you would accept my resignation effective September 4.” An Energy 7 Department spokesman declined to elaborate on Mr O'Leary’s resignation letter, and there was no comment from the White House.

While Mr O’Leary was submitting his resignation, Mr Carter was calling more senior aides, including the Vice-President (Mr Walter Mondale), the Treasury Secretary (Mr Michael Blumenthal), and his inflation adviser, Mr Alfred Khan, to

Camp David to help devise an energy plan and boost his sagging political fortunes. Mr Carter has shut himself away in the Presidential retreat in the Maryland mountains since returning from the Tokyo economic summit meeting last week. He is looking for a solution to the energy and economic problems that have brought his Administration to crisis point.

As Mr Carter’s public popularity slumped to the lowest level of any United States President in modern times, Congressmen who went to Camp David said he would soon come down from the mountain with a sweeping, hard-hitting energy programme, and, they added, Congress would be ready to approve it.

President Carter has received a personal commitment from Crown Prince Fahd that Saudi Arabia will increase its crude oil production substantially for a significant period, the White House has announced.

The White House relayed w'ord of the commitment, which confirmed unofficial reports in oil-industry circles, as the President conferred with members of Cong.ess at Camp David. It said the Saudis, whose normal drily output is 8.5 M barrels, would announce details soon of their plans. “The personal message to th? President made clear that the Saudi decision is based on their historic friendly relationship with the United States and their commitment to be a dependable supplier of oil to the world,” the White House said.