Iranian Situation and United States Energy Conservation Remarks at a White House Briefing for State Governors.

First of all, let me welcome you here to the White House and express my appreciation for your willingness to join in with me in perhaps one of the most difficult and complicated challenges which our Nation has ever faced in peacetime.

I deeply appreciate the letter I got from Governor Bowen and Governor Lamm expressing your support for what we are trying to do, and also suggesting on your own behalf that the Governors would espouse and pursue a fast-track conservation program, that you are dedicated to the sharing of information and new ideas among yourselves and with other agencies of government, both local and Federal, that you will work with the private sector as much as possible to encourage longrange conservation measures. And I understand as well that you intend to have a major conservation conference sometime before too long.

This kind of support from you is very important to me. Governor Brown in California and others immediately expressed your approval and your willingness to help in putting into effect the prohibition against the acceptance of Iranian oil to our country, and the overwhelming sense that I have is that we have a nation which is united, eager to do the best we can under difficult circumstances, and highly supportive of what we are attempting to accomplish in Iran.

I've just gotten a report that there are maybe 80,000 Iranians demonstrating outside our Embassy in a highly emotional state, and we are trying as best we can to protect the honor of our country and to protect the lives of the hostages, who are courageous, dedicated, and who deserve every protection that we can give them.

I would like to add one word of caution, if you don't mind, and I hope that you'll relay it to the people back home who listen to your voice. I've had a large number of expressions of support for us, sympathy for our hostages, and the expression of strong condemnation for what is going on in Iran by Iranians, particularly those who live in our country, who have lived here for years as responsible citizens. And it would be a serious mistake for us to deprive them of their rights or deprive them of their citizenship or deprive them of our friendship.

There is an inclination in a time of crisis to condemn every person who has connections with Iran, but I hope that you will caution all Americans, as I'm trying to do now, not to abuse the fine tens of thousands of Iranians who live in our country and who have a voice to speak out, as they have to me directly; and also to recognize that in Iran it's the radicals and the militants and the irresponsible elements there who are responsible for the tragedy which we are trying to prevent.

We are trying to act with circumspection, but also with firmness. Ours is not a country that responds or ever will respond to intimidation or blackmail; we will not honor in any possible way the threats or actions of terrorists. I've tried to act moderately, but without deviation from the principles on which our Nation was founded, and which make us justifiably proud. A few of the things that we have done I'm sure you understand, and on some you've had to join in with me.

I have discouraged the issuing of permits for demonstrations on any Federal property, where the demonstrations might result in violence or abusive acts or perhaps bloodshed or loss of life, because I think the transmission of television or other' photographs or reports of those instances might very well result in a danger to the lives of Americans who are being held hostage.

In addition, as you know, I have issued instructions that we will not accept the shipment of any Iranian oil to our country. I did that to make it vividly clear that our country is not subject to the threat of an embargo or a threat of any other kind.

I don't know the ultimate results of that decision in international oil markets. The high likelihood is that supplies to our country will be reduced. That's something that I am perfectly willing to face, particularly since I have leaders like you marching shoulder to shoulder with me to face that eventuality. The American people cannot underestimate the importance of the strictest possible conservation matters and actions at this moment.

There is no reason to panic, fortunately. Because of actions that you and I and others have taken in the past few months, we have a fairly good supply of crude oil, gasoline, home heating oil on hand, and we'll be able to see the trends in the weeks ahead. But an early and a permanent commitment to the sharpest possible reduction in waste of energy of all kinds will be helpful. And a preparation for contingency plans within your own States, and working in harmony with us, will be a very important element.

I've asked the Immigration and Naturalization Service to examine the visas of Iranian students and others who are here. If they are here legally, they'll be encouraged to stay, or permitted to stay if they choose to pursue their studies or to pursue their work. If they are here illegally, their papers will be processed completely in accordance with our Constitution and laws and the proprieties that we must observe, and they will be deported if they aren't complying with those laws or constitutional provisions.

In order to protect our own economy and the rights and privileges of American business leaders and others, our banks, American citizens, I have frozen the assets of Iran which are directly or indirectly related to the government ownership or control. This is so that debts owed by Iran to us will be paid, and so that we will not have an adverse effect on our economy because of the forfeiture of those debts, because of impoundment in Iran of our assets or properties.

And the last action that I've taken that I'll mention, in order to save time, is that I have discouraged any meeting of or debate in the United Nations Security Council of the Iranian problem. This was requested by Iran, but my own decision has been that this would not be appropriate as long as they are holding hostages in our Embassy there. And I'm proud to say that the United Nations Security Council unanimously has condemned the Iranian Government for what it has condoned or permitted. And they have also unanimously rejected any proposal by Iran for debate or discussion of this issue while the hostages are being held.

This is a serious matter, as you know. It's not a reason for panic. It's not reason to abandon the principles or laws or proprieties in our own country. We do not want to be guilty of the same sort of improper action which we are condemning in Iron. And it's, to repeat myself, not a cause for us to abuse any Iranian citizen who's in our country. If there are those here who act improperly, the laws are adequate to care for them. If they are here illegally, our deportation processes will be carried out in a completely proper and predictable way.

I'm grateful that less than 2 weeks ago the Congress passed and I signed an energy emergency act which gives us the ability, working together, to care for the needs of our country if we have a serious shortage or threatened shortage of energy. State conservation measures have been assessed, and with your help, I think the law is adequate in that respect. The gas rationing authority given to me is a step in the right direction, but still not adequate, and we hope to have it improved in the future.

We are now preparing a gasoline rationing plan. As soon as this very complicated procedure is completed, it will be revealed to the public and to the Congress. And we would welcome, Dick, ¹ your committee working with Charlie Duncan in the preparation of the gasoline rationing proposal. It cannot be implemented, except with congressional action, unless we have a 20-percent shortage. And this, as you know, would wreak havoc in our national economy, if we had to wait that long.

¹ Governor Lamm.

So, we do have problems with it, but we have a fairly adequate means by which Governors can take the initiative, in each one of your own States, to implement very strict conservation measures. I don't know what the future will bring, but whether it's a slight shortage, a permanent shortage, a serious shortage, or further disruption in supplies, there is no doubt in anyone's mind in this room, I'm sure, that we versa, a permanent consultative information coming from you to us, and vice versa, a permanent consultative interrelationship between Governors and other officials and the Federal Government, and the closest possible partnership in dealing with an unpredictable and potentially serious situation.

We've been working on this matter for 2 1/2 years. I first made the proposals for an energy policy for out' Nation in April of 1977. After 18 months of work, the Congress passed a partial energy package about a year ago, in November of 1978. And we are on the verge, I believe, of taking additional substantive steps.

There is no way that all of you could approve of every element of the energy plan. No one does. It's the result of an enormous effort to compromise and to work together, because, in effect, I lead two energy nations. One is the greatest consuming nation on Earth, by far, and the other one is one of the greatest energy producing nations on Earth. And the inherent conflicts that exist under those circumstances certainly has now been very carefully assessed and, I think, will be successfully addressed.

Hard feelings have erupted and, in most cases, have been assuaged. And I think the Congress is well on the way now toward completing their work for a comprehensive energy proposal. We are determined not to violate any laws. We're determined not to encroach on the prerogatives and responsibilities of the State and local governments. We're determined to enhance and not to reduce the effectiveness and the independence of the free enterprise system of our country. We would like to have the Federal Government role minimized, and to the extent that individual citizens, families, businesses, local and State governments can act responsibly and aggressively with the maximum degree of innovation in conserving energy and producing new energy sources, then to that degree the Federal role can be minimized.

Again, I'm grateful that you would come here. This afternoon you'll have a fairly complete description and an elaboration on some of the items that I've covered with you. Charlie Duncan, John Sawhill, Secretary Vance, William Miller, the Secretary of Treasury, will all be here to discuss these matters with you and to answer your questions.

But I think for just a few minutes before I leave, you might want to comment or ask a question yourselves.