Proclamation 3969—Modifying Proclamation No. 3279, Relating to Imports of Petroleum and Petroleum Products

Pursuant to section 2 of the Act of July 1, 1954, as amended (72 Stat. 678), and section 232 of the Trade Expansion Act of 1962 (76 Stat. 877), findings and determinations have been made that adjustments in the imports of crude oil, unfinished oils and finished products were necessary so that such imports would not threaten to impair the national security, and such adjustments have been made by Proclamation 3279 of March 10, 1959, as amended from time to time.

The Cabinet Task Force on Oil Import Control, established in March 1969 to conduct a comprehensive review of the mandatory oil import restrictions under Proclamation No. 3279, as amended, submitted, on February 2, 1970, a report concluding that the existing overland exemption in combination with a system of restriction based on international agreements does not effectively serve our national security interests and leads to inequities within the United States, and recommending that volumetric restrictions on the importation of Canadian oil be established as a means of interim control during the period of transition to an alternative United States-Canada energy policy.

The Director of the Office of Emergency Preparedness, with the concurrence of the Oil Policy Committee, has recommended that the importation into Districts I-IV of Canadian crude and unfinished oils heretofore subject to voluntary controls, while exempt from mandatory controls, be limited to 395,000 average barrels per day in the period March 1, 1970, through December 31, 1970, in order to institute a more effective system of import control for the accomplishment of the national security purposes of Proclamation 3279, as amended.

I agree with the recommendation of the Director and deem it necessary in the interest of the national security objectives of Proclamation 3279 to establish an orderly limitation on the importation into Districts I-IV of Canadian crude and unfinished oils.

Now, Therefore, I, Richard Nixon, President of the United States of America, acting under and by virtue of the authority vested in me by the Constitution and statutes, including section 232 of the Trade Expansion Act of 1962, do hereby proclaim that:

(1) Effective immediately, a new section 1 A, reading as follows, is added to Proclamation 3279, as amended:

"Sec. 1 A. (a) Notwithstanding the provisions of clause (4) of paragraph (a) of section 1 of this Proclamation, during the period March 1, 1970, through December 31, 1970, crude and unfinished oils imported from Canada into Districts I-IV shall not exceed 395,000 average barrels daily and during the period March 30, 1970, through December 31, 1970, no crude oil or unfinished oils imported from Canada may be entered for consumption or withdrawn from warehouse for consumption in Districts I-IV except by or for the account of a person to whom a license has been issued by the Secretary of the Interior pursuant to an allocation made to such person in accordance with regulations issued by the Secretary with the concurrence of the Director of the Office of Emergency Preparedness.

"(b) The Secretary, pursuant to such regulations, shall make allocations effective for the period March 1, 1970, through June 30, 1970, provided however, that such allocations shall be subject to adjustment based on revised allocations for the period from March 1, 1970, through December 31, 1970, which shall be issued no later than June 30, 1970. The regulations shall further provide that all such oils imported during the period March 1, 1970, through December 31, 1970, by a person to whom such an allocation is made shall be chargeable against his allocation. Licenses issued under the allocations shall permit the entry for consumption or withdrawal from warehouse for consumption only of crude oil produced in Canada and unfinished oils processed from crude oil or natural gas produced in Canada which have been transported into the United States by pipeline, rail, or other overland means of transportation.

"(c) The Secretary, by regulation, shall establish the maximum proportion of such allocations which may be used for the importation of unfinished oils."

(2) Section 4 (a) of Proclamation 3279, as amended, is amended by striking "Defense" and substituting therefor "Justice".

In Witness Whereof, I have hereunto set my hand this tenth day of March, in the year of our Lord nineteen hundred and seventy, and of the Independence of the United States of America the one hundred and ninety-fourth.

RICHARD NIXON