Carter cuts oil imports

Press, 17 July 1979, Page 1

Carter cuts oil imports

NZPA-Reuter Washington

President Carter last evening announced tough measures aimed at getting the United States through its present energy crisis and what he called a crisis of confidence among Americans themselves.

Displaying confidence in his own leadership in spite of rock-bottom ratings in opinion polls, Mr Carter announced that he was invoking emergency powers to limit oil imports to below the 8.5 million barrels a day he set at the Tokyo Economic summit talk last month.

He said in a nationallytelevised speech that soaring prices set by the Organisation of Petroleum Exporting Countries <O.P.E.C.) were threatening America’s economic health and security, and said he was going to end that “intolerable” situation. The President, after an extraordinary 11-day series of meetings in the seclusion of his Camp David retreat, was sombre but animated and forceful as he dealt with the energy crisis. He described America as a nation beset by a crisis of confidence, confessed short-comings in his own leadership, and asked fellow Americans to rally against the energy problem as the first test of “our ability to unite this nation.” Mr Carter offered no bombshell announcements, but showed in word and gesture a President determined to deal with the

energy woes that have eluded past answers. He said he never again would allow the nation to import as much foreign oil as it did in 1977, a year in which the United States imported 8.5 million barrels a day. “From now on, every new addition to our demand for energy will be met from our own production and our own conservation,” he said. “I am setting the further goal of cutting our dependence on foreign oil by one-half by the end of the next decade •*—a saving of over 4.5 million barrels of imported oil per day.”

“I will use my Presidential authority to set import quotas,” said Mr Carter. “I am announcing immediately that for 1979 and 1980, I will forbid the entry into this country of one drop of foreign oil more than these goals allow. These quotas will insure a reduction in imports, even below the ambitious levels we set at the Tokyo Summit.” Mr Carter said that “to give the United States energy security he was asking for the biggest peace-time commitment of funds and resources in the nation’s history to develop alternative sources of fuel from coal,, oil shale, plant

products for gasohol, unconventional gas, and from the sun. “I propose the creation of an energy security corporation to lead this effort to replace 2.5 million barrels of imported oil per day by 1990,” said Mr Carter. “The corporation will issue up to SUSS billion in energy bonds—in small denominations so that average Americans can invest directly in its energy security.” Mr Carter said: “I will soon submit legislation to Congress calling for the creation of America’s first solar bank, which will help us achieve the crucial goal of 20 per cent of our energy from solar power by the year 2000. These efforts will cost money, and that is why Congress

must enact the windfall profits tax without delay.” “It would be money well spent: “Unlike the billions of dollars we ship to foreign countries to pay for foreign oil, these funds will be paid by Americans to Americans. They will go to fight, not to increase, inflation and unemployment. “1 am asking Congress to mandate . . . That our nation’s utilities cut their use of oil 50 per cent within the next decade and switch to other fuels, especially coal, our most abundant energy source.” He will urge Congress to create an Energy Mobilisation Board which, like

the War Production Board in World War 11, will have the responsibility and authority to cut through the red tape, the delays and the endless road-blocks to completing key energy projects. “We will protect our environment. But when this nation critically needs a refinery or a pipeline — we will build it,” he said. “I ask Congress to give me authority for mandatory (energy) conservation, and for standby gasoline rationing,” said Mr Carter. “To further conserve energy, I am proposing an extra SUSIO billion over the next decade to strengthen our public transport system.”

He ended his six-point energy programme by urging Americans to take no unnecessary trips, to use car-pools or public transport, voluntarily to introduce a earless day each week, to obey the speed limit, and to set thermostats to save fuel. The President’s call for energy independence drew enthusiastic praise from a broad range of members of the House of Representatives, senators, governors and other public officials. Republican critics said Mr Carter echoed what they had been saying about the energy crisis. The House Speaker, Mr Thomas O'Neill, said he was confident the American people would respond with the necessary sacri-

fices and that Congress would pull together in a time of crisis. Senator Alan Cranston, of California, the secondranking Democrat in the Senate, said, that “ultimately, the test will be the President’s ability to lead Congress and the nation.” Representative John Dingell, Democrat, of Michigan, the chairman of a key House energy subcommittee, said the President’s new policies will mean big sacrifices for Americans.

“It could very well mean more gas lines,” he said, “along with additional shortages of homeheating oil.” Representative Toby Moffett, Democrat, of Connecticut, one of the few Democrat critics of the speech, said he expected more drama from Mr Carter after the buildup during the President's 11 days of consultation

■with national leaders at Camp David. Mr Ralph Nader, the consumer advocate, was sharply critical of Mr Carter.

"He repeated energy goals that he has been stating for years,” said Mr Nader. “There is nothing new in the goals. What he failed to do is tell us how to get there, even in general terms.” Mr Nader also said that Mr Carter’s speech ignored completely the problem of excessive power in the hands of the oil companies, and their contribution to the energy problems.

Senator Edward Kennedy, Democrat, “of Massachusetts, considered Mr Carter’s most • potential challenger, pledged his support. The former Texas Governor, Mr John Connally said he was disappointed Mr Carter did not promise

to speed up the licensing of nuclear power plants and put more emphasis on coal.

The Japanese Government has hailed the new energy policy as bold and far-sighted.

The Chief Secretary of the Cabinet (Mr Tanaka) said that the policy would do much to help solve energy problems facing the world. Mr Tanaka said he expected the policy would also help to improve and stabilise the United States balance of payments and contribute to the stable growth of the American economy.

On the Tokyo foreign exchange market, the United States dollar rose briefly to a rate of 218.20 yen immediately after Mr Carter’s speech before falling again to 217.80 yen at the mid-day close, compared with 217.60 at the opening.