FOREIGN RELATIONS, 1950, VOLUME I


other influence. In view of the foregoing, it is requested that an agenda
item be prepared for discussion at the next meeting of the National
Security Council in order to determine the necessity for a National
Petroleum Program.
  It is further requested that after discussion of this problem by the
National Security Council, that the Petroleum Administrator for
Defense be requested to take action to develop a program leading to
the complete supply of Allied requirements. The attached draft of a
letter to the Petroleum Administrator is submitted for your
consideration.
  Sincerely yours,                               ROBERT A. LovETT


                            [Subannex]
Draft Letter From the Executive Secretary of the National Security
      Council (Lay) to the Secretary of the Interior (Chapman)

TOP SECRET                       [WAsHINGTON, December 28, 1950.]
  DEAR MR. SECRETARY: During the past two years, the international
situation has become increasingly acute. At the same time, increased
petroleum requirements of the Western Powers have made the early
development of a National Petroleum Program a vital necessity to
our national security.
  The Department of Defense recently advised the National Security
Council of a Joint Outline War Plan, currently under study, for a
war assumed to commence on 1 July 1954. Preliminary estimates of
the petroleum requirements of the U.S., Allied, and Associated Powers
indicate that in the geographic areas which would be available to such
powers, a deficit in refining capacity of 11/ million barrels per day,
as well as 1/2 million barrels per day of crude production, will exist
at the outbreak of war.
  In view of the foregoing, the National Security Council requests
that for its approval, you propose the necessary action to develop a
program leading to the complete supply of Allied petroleum require-
ments. Such a program should be developed following the general
procedures you discussed with the Under Secretary of Defense, Under
Secretary of State, Assistant Secretary of Commerce, and others on
28 December 1949.
  Sincerely yours,                                     JAmES LAY


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