Mike Wallace Trash

8/12/2019 Mike Wallace Trash

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Roger Angell

William AttwoodKenneth Auchincloss

Richard AvedonLauren BacallRussell Baker

George Balanchine

II' George BallCarl Bernstein

A Leonard Bernstein

Michael BessieArnaud de Borchgrave

Art BuchwaldWilliam F. Buckley, J r .

Michae1 Burke

Patr ic ia CarbineHugh Carey

Ray Cave~ John Chancellor

~ Schuyler Chapin

rr Richard Clurma.nBetty CamdenWalter Cronkite

Peter DerowRichard Dougherty

John Ell io t t J r .

Nora EphronClay FelkerMax Frankel

Brendan GillVictor GotbaumAdolph Green

David Halberstam

Louis HarrisKitty HartDonald Hewitt

Thomas Hoving

John Jay Isel in

Jacob JavitsVernon Jordan

Henry A. KissingerEdward KochJack KrollJohn V. Lindsay

Grace Mirabella

Paul MooreBil l D. MoyersDanie 1 .P. MoynihanRupert Murdoch

,f Bess Myerson

Jacqueline OnassisMichael O Neill

I.M. Pei~ Peter G. Peterson

Warren H. Phil l ipsGerard PielHaro.ld S. PrinceDavid RockefellerlHlliam Rogers~ Felix Rohatyn

. . A. M. RosenthalJohn Russell

Bayard Rustin_ Richard Sa lan

Beverly Si l l s

Gloria Steinem

Franklin ThomasMike Wallace

/ Theodore H. White

Thomas Wicker

~ Barbara Walters

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Ruth Stree te r

Massachusetts

Flor ida

:New York

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Kansas

Texas

Tennessee

Maryland

Michigan

Arkansas

New Jersey

· ew exico

Rhode Is land

Hawaii

Maine

Guam

Virginia

Colorado

Minnesota

rmm

Reagan

Anderson

PRIMARY STATE ASSIGNMENTS

Peter Lincoln Mary-Frances Lichak

New Hampshire Puerto Rico

Vermont Alabama

Georgia Wisconsin

I l l i no i s Louisiana

Connecticut North Carol ina

Pennsylvania Washington D.C.

Indiana Nebraska

Idaho Oregon

Ohio Kentucky

South Dakota Nevada

West Virginia Montana

Mississ ippi al i forn ia

CAUCUS STATE ASSIGNMENTS

Iowa Wyoming

DelawareWashington

Canal Zone South Carol ina

Oklahoma North Dakota

Alaska Utah

Missouri Virgin Is lands Dems Abroad

CANDIDATE ASSIGNMENTS

Kennedy Carter

connally Bush

Dole Crane



POLITICAL CALENDAR, 1979

Fr iday, October 26- Sunday, October 28 Massachusetts New England GOP

Conf'erence and straw preside.. 'lti a l poll

Saturday , October 27 Louisiana gubernatorial el ect ion .

Thursday, November 1 The expected date f'or the Howard

Baker f'ormal annormcement to tak e pl ace in the Senate Caucus Room .

Friday, November 2- Saturday, November 3- Maine Republ ican pres ident ia l

straw vote .

Tuesday, November 6 El ection Day. Gubernatorialraces will be hel d i n Louisiana and Mississippi .

Five s imultan eous 1,000 a pla te

Cormtdown to Victory Republican National Corm:n.ittee f 'undraising dinnerswill be held across the nat ion. The locat ions and the i r pr inc ipa l speakers

are as f'ollows: The New York Hilton, John C o n n ~ Washington Hilton,Robert Dole; Chicago PaJmer House Hotel , Howard Baker; Houston Oaks,

Alexander Haig; Detroit P laza, Bi l l Brock and George Bush .

Tuesday, November 13 The expected date f'or the RonaldReagan f'ormal annormcement on the CBS-TV network approximately 7: 30 PM a t

the New York Hilton .

Wednesda.y, November 14-Saturday ( November 17 Council of' State Governments

Governing Board Annual Meeting Rep. and Dem . ) a t the Hyatt Regency,

Lexington, Kentucky .

Friday, November 16 - Sunday, November 18--Florida pres ident ia l p r ef'erenceconventions (Dems . and GOP .

Sunday, November 18-Tuesday, November 20- Republican Governors Associat ionAnnual Meeting a t Sheraton Crest Hotel , Aust in, Texas .

Frida_y, November 30 Democratic National Committee f'Undraising

dinners in Seat tl e, Washington and Portland, Oregon . President Carter i s expectedto at tend .

Tuesday, December 4 The expected date f'or t he President to

annormce his f'ormal candidacy f'or a second term .



HOSSEIN V

Debbie Krautz). 202/797-6599

For Yazdi - I just have a general address nTehran bu t no telephone number

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HAMILTON JoHNSTON B Co. INc.

CONSULTANTS O N INVESTMENT

PLANNING AND SUPERVISION

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EAST -'11'.STREET. NEW YORK• N.Y. 10017

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October 26, ~ 7 9RICHARD H. NOLTE

t:liECUTIYI: YICI: I'IIE&IDENT

Sheikh Ahmad Zaki Yamani

Minis t ry o f Petroleum Mineral ResourcesRiyadh, Saudi Arabia

Dear Mr. Minis te r ;

I r e c a l l with plea sure meet ing with you in your o f f i c ein Riyadh ea r ly in 1977. The conversa t ion was about Muslim Lawand its modern p o t e n t i a l i t i e s . I gave you a 'copy of my 1958a r t i c l e on t he s u b j ec t ( The Rule o f Law in the Middle East )

and you were good enough to presen t me in exchange with cop ie sin Arabic and Engl ish o f your own thought fu l essay .

As d e t a i l e d in the mater i a l a t t ached , I am conduct ing

a s e r i e s o f seminars fo r four .or f ive sen io r of f i c e r s of l ead ing

New York banks who a re re spons ib l e fo r inves tment dec i s ions

a f f e c t i n g around $50 b i l l i o n . It i s an experimental program,to be s u r e , - - an a t t empt to provide t he p a r t i c i p a n t s as e f f i c i e n t l yas poss ib le with a background knowledge o f the Middle Eas t so as

to enhance t h e i r a b i l i t y to asse ss day- to -day even t s in t h a t a r eaand thus to improve t h e i r inves tment dec i s ions .

In the evening meet ings to d a t e , we have been concernedwith Is lam, Arab h i s t o ry , Ihn· Khaldun, and t he mores and customsi n so fa r as they can be gene ra l i zed - - o f presen t day Arabs . In

add i t ion , ad hoc luncheons with wel l - informed persons on p a r t i c u l a r

su b j e c t s , are a p a r t o f the plan . It i s c l e a r t ha t Muslim law andits presen t day ap p l i c a t i o n and p o t e n t i a l inc luding Is lamic

banking - - should be a p a r t o f our program, and the burden o ft h i s l e t t e r ·i s to i n v i t e you to j o i n our small group fo r a pr iva t edinne r dur ing one o f your v i s i t s to the u.s. to t a l k informal lyon t he sub jec t , and to j o in in a ge n e r a l d i scuss ion t he rea f t e r .I can assure you a most l i ve l y i n t e r e s t on t he p a r t of the _p a r

t i c i pan t s .

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HAMJLTON JoHNSToN B Co. lNc.

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I f t h i s i s poss ib le fo r you a t some po in t dur ing t he

next few weeks o r months, I would be g ra te f .u l to hear from youhere a t y o f f i c e o r a t home 50 Cat Rock Road, Cos Cob,Connect icut 203 869-4445) , o r through Fred Dutton in Washington,o r otherwise with a view to se l e c t i n g a su i t a b l e date - - whichcould be kep t qu i te conf iden t i a l i des i red .

With b es t wishe,s.

Yours s ince re ly

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QUESTIONS FOR SHEIKH Y M NI

1 . What e f f e c t w i l l the i nc iden t in Mecca have on fu tu re Saudi

o i l produc t ion and i ndus t r i a l development pol icy?

2. What i s your reac t ion to the recen t Wall St r e e t Journa l

e d i t o r i a l to the e f f ec t t h a t Saudi orr -po l i cy i s ex-c lus ive ly aimed .a t maximizing revenues and . not to s a t i s fying the energy requirements of the consuming coun t r ies?

3.

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6.

7.

9 •

10.

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· Arabia plan to br ing i t s pr i c e s i n to l i ne with

c uce s bef? re .

What are the impl ica t ions o f the U.S. f reeze on I ran iandepos i t s in U.S. banks fo r Saudi o i l and f inanc ia l po l i c i e s?

theGiven/number of reasons why o i l produc t ion should be reducedfrom Saudi r a b i ~ p o i n t o f view i s t he re r e a l l y much chanceit wi l l not be?

Do you see a poss i b i l i t y Muslim law could con t r ibu te to areso lu t ion o f the I s rae l i -Pa l e s t i n i an conf l ic t?

Given the f a i r l y absolu te power the OPEC has over world o i lpr i c e s why has Saudi Arabia so cons i s ten t ly pressed fo r

r e s t r a in t in pr ice inc reases?

Given the very l a rge i ncen t ives t ha t now ex i s t for na t iona l

o i l companies to f ind more o i l and given the l imi ted e x te n tto which most sedimentary bas ins in the world have been ex

p l o i t e d wha t do you th ink the prospects are .t h a t ~ m j o rworld crude o i l surplus wi l l emerge .- - i e ~ a p r o l i f e r a t i o n

o f Mexicos?

Saudi Arabia has c l ea r l y t r i e d to be a l e a d ~ r in OPEC with f a i rsuccess . Does t h i s not imply a s ubs t a n t i a l amount of spare

crude o i l prbducing capac i ty in the count ry and how fa r would

you be l i ke ly t o go to mainta in such spare capaci ty?

As a re la ted p o i n t ~ i the po l icy o f se l f - f inanc ing o f exp lo ra t ionand product ion by Aramco does not fu l ly meet your na t iona l goa l s

would addi t ional funding be provided? ·

Do you have a fee l for how fa r crude o i l pr i c e s can be r a i s e dbefore provoking a major s h i f t t o o the r energy sources -p a r t i c u l a r l y coa l and nuc lear?



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. }{ .7 Jy lThe Corporate Crin1e

By Mark Dowie

Photograph by Bennett Hall

Tom Mboya was the hope of the western world . Bright, energetic, popular and

inclined to be democratic-he was a born leader who, Washington hoped,WOl lld rise to power in Kenya and help keep Africa safe for United States

commerce. In 1969 he was shot down in the streets of Nairobi. An emergency rescue

squad was by his side in minutes. They plugged him into the latest gadget in resuscitative technology-a brand new U.S. export called the Res-Q-Aire. What the rescue

team didn't know as they watched Tom Mboya s life slip away was that this marvelousdevice had been recalled from the American market by the U.S. government because.it was found to be totally ineffective. The patient died.

Losing Mboya to the Res-Q-Aire was perhaps a subtle retribution for the U .S., for

to this day we allow our business leaders to sell , mostly to Third World nations,

shiploads of defective medical devices, lethal drugs, known carcinogens, toxic pesticides, contaminated foods and other products found unfit for American consumption.

Ten years after Mboya s assassination, in fact , Kenya itself remains a major market

, for unsafe, ineffective and contaminated AmeriCan products. At the 1977 meeting ofthe United Nations Environmental Program , Kenyan Minister of Water Develop-

·Jl)ent Dr. p J. Kiana warned that developing nations ~ ~would no longer tolerate being used as dumping 1.grounds for products that have not been adequate]y _ 1tested''.and that their people should not be used as 1.. guinea pigs for chemicals .

The prevailing sentiment in Washington contrasts j

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TO: Dick NolteMike Wallace

FROM: Frank Mlynarczyk

RE: Questions for Sheikh Yamani

Q.~ Cb 7/u c/ll

If a ,genuine COJnPrehensiye pe.w;. .e were achieved.,. tltftA <tyer u a ~ 1 tho 1uutP

ftl.tnr• what i . f fect would that have on the will ingness of Saudi Arabia to in -

crease i t s petroleum productive capacity and i t s production levels? Would otherArab producing countries l ikely feel the same as Saudi Arabia?

BACKGROUND:

1. Even before the embargo of 1973/4 Yamani told several U.S. poli t ic ians thatSaudi Arabia did not want to have large increases in i t s productive capacity

because Saudi Arabia did not want the psychological pressure of unused capacity.Today, some people argue this i s more t rue than ever in view of Iran. Others

argue that Arab character and values would l ikely bring forth a magnanimousgesture or two i f a true peace were achieved.

2. In April 1979 a s ta f f report was prepared for the Subcommitte on Internat ionalPolicy Chmn. Paul Sarbanes, D., Md.) of the Committee on Foreign Relations

Chmn. Frank Church, D., Idaho) of the Senate ent i t led The Future of SaudiArabia Oil Production . That report (cover, index, preface, introduction and

summary attached) indicated that for technical, conservationist, and f inancialreasons, Saudi Arabia's petroleum production capacity would not be increasedpast 12 million barrels/day, and that this production capacity would not beachieved unt i l the l a te 1980's. In the early 1970's, Saudi Arabia had enter-tained the possibi l i ty of increasing production capacity to 20 mill ion barrels /

day by the early 1980's. There have been some rumors that the Saudis wereupset with the report, but for reasons that have never been made public to my

knowledge.

3. In the Wall Street Journal on May 11, 1979, Ray Vicker reported (second hand)

tha t Japanese businessmen were told by Yamani that Saudi Arabia i s preparedto great ly increase i t s oi l production but that we wil l not be able to do so

unt i l peace is established in the Middle East .

Q. What i s the best way for the United States to help Saudi Arabia achieve i t s

economic development goals? Can we do more? Does Saudi Arabia want us todo more?

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THE FlJ UHE OF SAUDI R illifW

0 L PRODUCT aiJ

A ST FF REPORT

TO HIE

B C 0 f 1 ~ 1 I H E ON INTERNATI ON L E C O N ~ 1 I C POLI CY

ON FOREIGN REJ.JO:fiONS

UNITED ST TES SEN TE

l zlnted fo 1 the use or lhc Committ ee on F orc lg n Relntlonn

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TABL[ OF CONTENTS



I

II II I IIV

v.

VI.

VI I

Preface

Introduction and Summary

Saudi Arabia s Oil Produci ng Abi li ty

Leng t h of Produc ti on Pl ateau

Rese rves

New Discove r ies i n Saud i Arabia .

Tec hni cal Concerns

Recent Techn i cal Deve l opments and ConcernsDecember 1 1976 to October 11 1977 .October , 1977 to Present

Se l f-Financing Constra int

Demand for Crude Oil from Sa udi Al abia

Supp l ies from Other Countr i es . . . - . . . .

Appendi x A - Technical Background . .

Appendix [3 - Hi storica l Basis of Tec hnical ConcernsPre-October 1973 Embargo . . .October 17,. 1973 to March 1 1 974 . . .March 1974 to December 1 , 1976 . .

13 .

3 .

10

11 .

12

12.12 .14 .

16.

19

19.

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Bl8183.84 .

Appendix C - Cost of Maintaining and Expand i ng Production Fac il i t ies Cl .Costs of Mai nta i ning Crude Oi l Capacity. Cl .Costs of Expa nding Production Capacity C2.

Appendix D - Saudi Arabian Crude Oi l Types Dl.

Appendix E - Aramco Crude Product ion , 197 1-1978 El.

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E D \ E

An accurate unde r st andin<J of tliP. facts resprctinlJ tile cr1pab il i tir<; andth e li mi lat ions on f utu re oi l rr oduc t ion i s essen t ia l to the formulation ofa rea li st i c energy po l icy by t he Un i ted States . Wit h t hi s in mi nd , the s t af fof th e Inte r nat i ona l Econom i c Policy Subco111mitt ee of the Commit t ee on Fore i gnRe lati ons has conducted over the past yea r an i nte ns i ve study of t he techn i ca land f i nancia l cons iderations which are li kely to play a forma t ive rol e i ndet ermining the l evels of production that can be expect ed f rom the Saudi Arab i aoil -- fi elds i n the rema in i n9 decades of t hi s century . Saudi Arabi a , as th ehold er of t he wor l d ;; largest reserves of oi l , pl ays a pivotal rol e in v1 rl d energy

cal cul ations .

The staff i nvest igation and th i s report cbncent rate on essenti all yt echn ical conservationi st . and financ i a l cons iderat i ons Jffccting Saudi r ~ b i aproduct i on. These considc1·ations have had i:l.s i gn i f i cant effec t on the planst o reduce t he l evels of present and f ut ur e product ion and capaci ty of the SaudiAr ab i an fi e l ds. Factors wh i ch are other than pure ly technica l and fi nancia l havepl ayed., and ar e li kely t o continue to pl ay , 6 s i gn i f icant role in th e f ina ldec i s ions wh i ch determi ne t he l evel of oil product ion i n Suudi Arabia .

The fa cts uncovered by the staff i nvestigation and set forth in thi sreport demons t rate t hat there are signif i ca nt technical

and other cons iderationsv h

i ch indicate t hat the optimistic and hi9hlyexpa ns i ve predictions respect i ng the l eve l s of producti on from Sa udi Arabiaare prob l emat i c at best and cannot with any measure of prudence be re l ied upo n asan el ement in the formulation of Un i ted States energy po l icy over the nexttl 10 decades.

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Oil produc t ion in s ~ ~ d i Arahin* is re cognized as a cr i tica l el ement in futureoil supp ly . Hi storically, tile · orld has depended upon Saudi Arabia to maintain amargin of spare capac i ty thJ t cnn be uti 1 zed in t ime of surging demand and shut in1vhen demand slackens. For the most part, dur ing the last five years Saud i Arabiahas been able to play this ro le. However , whe n Saud i Arabia has been at the outerl imit of i t s producti on capacity-- 1 ith dcn1and pressures st ill st 1·ong -- shortfalls

in crude oil supplies and hioher crude oi l pr ices have resul t

ed. For example, with nospare capacity available in December 1978, Saudi Arabiu v1as un able substa ntially tomoderate OPEC ' s 1979 price in crea ses . For the fir st quarter of 1979 , the- country ·1asproducing at l evels near its fu l l capacity of app1·oximately 9_8 mmbd to make up forthe loss of I r·anian oil. H01·1eve r, with a pre- I ranian crisis spare caracit.y of 0

mmbd to 2. 5 mmbd, Saud i Arabia was not able to f i l l t he gap in supp l y caused by thel oss of 4. 5 mm bci to 5.0 mnbd of Irani an exports , unt il Iran resumed sign if icant exports .

Even though Saudi Arabia has the l argest accumulation of known oi l res ervesthe world today . techn i cal , conservationist and economic consideration s will s ignificantly affect future oil production decisions . These th ree considerations vlill in

l arge part define the parameters for decision ; t hey do not , however , predict whetherany one production l eve l ~ 1 o u l d be the most desirable or the most likely. Failure tounderstand the parameters governing futu1·e Sa udi Arabian production decisions wou l dl ead the Unit ed States to misinterpret these decis i ons or to rely unreasonab l y onopen-ended volumes of Saud i Arabian crude oi l to meet the United States ' energy needs .

This report details the technical, con servat ioni st, and fi nancial p a r a m ~ t e r s which\J i l l affect Saudi t\rabi an oil production decisions . The effect of tile Saud i Arabian con-:cern about the e r o ~ i o n of its oil revenues by in flat ion, as well as about the optimumexpansion of industr i a li zation given economicand .socia l realities , on oi l production

dec i sions i s beyond the scope of this report. The report also doesi l t

attempt toevaluate political, diplomatic and secur i ty factors which may have a bearing ondeci s ions respecting f ut ure product i on l evels .

Based upon informati on collected by the Committee staff over the l ast year , i t

seems evident that the United Sta tes should not base i ts energy pl ans on the premisethat Saud i Arab i a, as r es idual supplier, wi l l produce enough oil to supply the needsof t he Un i t ed States or the world e c o n o n ~ over the next two decades at antic i patedrates of oil consumpti on. The curr e nt g t ~ r m production target for Saudi Arabia

· appears to be 12 mil l ion barrels a day {mnbd) . Three considerations bear upon thisdecision. Fi rst, higher production rates wou ld require costly in vestments ~ n d might

not be maintained fo)' a pe) 'iod of t ime acceptable to the government. Second, thereare perceived or actual technica l re straints on increased production from individualfields. Th ird, there are strong conservationist concerns in Saudi Arab ia .

Sa udi Arabia's decision to cut back i ts producing target to 12 mmbd was s ignificant ly influenced by the conclusion th at higher production rates would require costlyin vestments and might not be maintainable for a period of time accept able to SaudiArabia . The oil production level that can be mai ntained unti l i t beg in s to dec lin e tol01ver l evel s is kn01vn as t he produc tion plateau. The plateau that the Arabian Ame1·ica nOil Company (Aramco)** n01·1 uses as a basi s for i ts planning indicates that a ratr. of .12 mmbd may last fo r 15-20 years be fore i1·reversibly declining, a period Sau diArabia now find s uncomfortably short. High e)· rates, such as 16 mmbd, could ori ly bemaintained for a shorter period of time before dec lin e. f1oreover, t hepros pect of future discoveries in Saudi Al-obia i s highly uncertain. In addition ,techni ca l prob l ems have complicoted the mana gement of the oil fields since the early197 0' s _ Taking into account all these factors, i t wou l d be imprudent for the UnitedStates to pla n on a change in Saudi Arabian oil deve l opment plans to increase l ong-t erm production above 12 mmbd_ The ~ e n t pl an Qf a target capac i ty of 12 mmbd achievedno earlier than 1987 is a considerab le change f r o ~ an Gar l ier one whi ch envisioned acapacity of 16 nJnbd in 1983 . ·



5 0 0 SEVENTH AVENUE NEW YORK N.Y 100 18 • 5 6 0 2121



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HELICON INTERESTS , IN C .

211 EAST 53R D STREET

NE W YORK, N.Y . 10022

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Mike Wallace133 East 74th Street

Net-T York, Net-T York 10021

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o c i a t e Professor

DEPAI <TMt VTO SURGERY

UNIV RSITY OF OR GON

HEALTH SCIENCES CENTER

3181 5 W Sam Jackson Park Road Portland regon 972 1

Mike W 11 ace133 E. 74th St .New York N. Y 10021



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Mr. Mike Wallace133 East 74th StreetNew York N.Y. 10021

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VOL UME 7 No. 3 SPRI NG 1979

HOFSTRA

lAW REVIEW

THE PRESS S DTFFERE T:

REFLECTIONS ON J TICE STEW RT ND

THE U T O N O ~ v O U S PRESS

oyd hraws



JOE ARMSTRONGPublisher and Editor-in-Chief

755 Secon Avenue, New York, New York 10017212) 986·4600



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GUESTS FROM GAZA

News from Rehovot, Israel

tween Israel and her Arab neigh

Battling Parasitic

iseases

The Institute is joining the world

wide struggle against parasitic

diseases that still cripple and killmillions, mainly in developing

countries. A recent $150,000 grant

from the Rockefeller Foundation

will finance the establishment of aUnit for Molecular Biology of Par-·

asitic Diseases, to be headed by

Immunologist Prof. Ruth Arnon.

Other members of the Unit will in

clude Institute President Prof.Michael Sela and Professors David

Mirelman and Carlos Gitler,

whose expertise will bring new

insights to the study of parasitic

diseases, particularly their mem

brane components and immuneproperties. 'Examples of the" diseases being

fought are amoebic infection (oc

curring in both developing and

developed countries) and schisto

s o m i s i s ~ b i l h r z i ~ the de

bilitating worm-caused malady that

afflicts between 200 and 300 mil

lion people in Asia, South Amer

ica, the Caribbean and Africa,including some three-quarters of

the population of Egypt.

Since its victims are continu-ously reinfected, a completely new

approach is now being sought inthe struggle against bilharzia, andre.search within the new Unit will

be directed towards development

of a suitable vaccine against it.



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Mike Wallace Trash