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ACTION EUR-25
INFO OCT-01 ISO-00 NEA-10 EB-11 SCEM-02 IO-14 INT-08
TRSE-00 OMB-01 CIEP-02 CG-00 CIAE-00 DODE-00 PM-07
H-03 INR-10 L-03 NSAE-00 NSC-10 PA-04 RSC-01 PRS-01
SPC-03 SS-20 USIA-15 ACDA-19 DRC-01 /171 W
--------------------- 027677
R 191707Z OCT 73
FM AMEMBASSY OTTAWA
TO SECSTATE WASHDC 1946
INFO USOECD PARIS 883
AMCONSUL VANCOUVER
AMCONSUL MONTREAL
AMCONSUL TORONTO
AMCONSUL WINNPEG
AMCONSUL ST JOHNS
AMCONSUL HALIFAX
AMCONSUL QUEBEC
UNCLAS OTTAWA 2506
E.O. 11652: N/A
TAGS: ENRG, CA
SUBJECT: COMMONS QUESTIONING ON CANADIAN EMERGENCY OIL SITUATION
FOLLOWING IS EXCERPTED TEXT BASED ON UNEDITED TRANSCRIPT IN HOUSE
OF COMMONS QUESTION PERIOD OCTOBER 18, 1973, DEALING WITH POSSIBLE
OIL EMERGENCY DUE TO MIDDLE EAST WAR: BEGIN TEXT. MR. STANFIELD
(LEADER OF OPPOSITION): I SHOULD LIKE TO ASK THE MINISTER
WHETHER HE HAS BEEN IN DIRECT CONTACT WITH THE GOVERNMENTS OF
THE ARAB STATES IN THE MIDDLE EAST OR THEIR REPRESENTATIVES
TO DISCUSS THE CUTBACK FORMULA THAT HAS BEEN ANNOUNCED. IF
SO, CAN HE INFORM THE HOUSE WHETHER IT IS INTENDED BY THOSE STATES
THAT THESE CUTBACKS WILL AFFECT CANADIAN SUPPLIES, OR WHETHER
THIS POLICY WILL IN FACT AFFECT CANADIAN SUPPLIES? MR.
MACDONALD (ENERGY MINISTER): THE INTERNATIONAL COMMUNITY
GENERALLY IS ATTEMPTING TO GET A CLARIFICATION OF THE ANNOUNCE-
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MENT MADE BOTH BYTHE ARAB PETROLEUM EXPORTING COUNTRIES AND
THE STATEMENT MADE BY THE OIL MINISTER FOR ABU DHABI REGARDING
REDUCTION OF SUPPLIES. AT THIS MOMENT OF SPEAKING WE HAVE
NOT HAD A MORE PRECISE INTERPRETATION OF THE OPEC STATEMENT
THAT THE OUTPUT REDUCTION WILL NOT AFFECT ANY FRIENDLY STATES
WHICH WILL HELP THE ARABS IN A FRUITFUL AND EFFECTIVE MANNER,
OR THE STATEMENT OF THE ABU DHABI MINISTER THAT THE CUT-OFF WAS
TO THE UNITED STATES AND THAT SIMILAR ACTION WILL BE TAKEN AGAINST
ANY STATE WHICH SUPPORTS ISRAEL. AS I SAY, THE INTERNATIONAL
COMMUNITY IS SEEKING FURTHER CLARIFICATION OF THIS ANNOUNCEMENT.
AS SOON AS WE HAVE ASCERTAINED ITS IMPACT ON CANADA I WILL,
OF COURSE, BE HAPPY TO LET THE HOUSE KNOW. MR. GORDON RITCHIE
(DAUPHIN): MR. SPEAKER, I HAVE A SUPPLEMENTARY QUESTION FOR
THE MINISTER OF ENERGY, MINES AND RESOURCES. IN VIEW OF THE
MINISTER'S ATTEMPT TO GET VENEZUELAN ASSURANCE FOR THE SUPPLY
OF OIL, IN THE EVENT OF AN ARAB CUTOFF, WILL ANY CANADA-
VENEZUELA AGREEMENT OR OFFSHORE AGREEMENT BE OVER-RIDDEN BY
OECD WHICH WOULD BE FORCED TO INITIATE WORLDWIDE RATIONING?
MR. MACDONALD (ROSEDATE): THE OBJECTIVE OF CANADA, OF COURSE,
WOULD BE TO COOPERATE WITH THE OTHER MEMBERS OF OECD IN
HAVING THE BEST POSSIBLE ARRANGEMENT TO PROTECT OUR SUPPLIES
AS WELL AS THOSE OF THER COUNTRIES. THEREFORE, I WOULD HAVE
TO SAY THAT ANY ARRANGEMENT WE MAY HAVE DIRECTLY WITH VENEZUELA
WOULD BE SUBJECT TO THOSE OTHER ARRANGEMENTS. MR. T.C.
DOUGLAS (NANAIMO-COWICHAN-THE ISLANDS): MR. SPEAKER, I WISH
TO ASK THE MINISTER A QUESTION ARISING OUT OF HIS STATEMENT
MADE OUTSIDE THE HOUSE THAT IT MAY BE NECESSARY TO RESORT TO
RATIONING OF PETROLEUM SUPPLIES IN THE EVENT THE ARAB STATES
CARRY OUT THEIR POLICY OF RESTRICTING SUPPLIES TO THIS COUNTRY.
IN VIEW OF THE FACT THAT CANADA IS A NET EXPORTER OF OIL, QUITE
ABLE TO MAINTAIN SUPPLIES FOR ITS OWN PEOPLE, AT LEAST AT THE
PRESENT TIME, IS IT THE GOVERNMENT'S INTENTION TO MEET ANY
SHORTAGE IN EASTERN CANADA BY CURTAILING TO SOME EXTENT THE
EXPORT OF CANADIAN CRUDE AND MAKING IT AVAILABLE, PARTICULARLY
WITH REFERENCE TO HOME HEATING FUEL FOR THE EASTERN PART OF
CANADA? MR. MACDONALD (ROSEDALE): MR. SPEAKER, THE DIFFICULTY
OF THAT SUGGESTION IS THAT THERE IS NOT IN PLACE A DELIVERY
SYSTEM TO BRING ANY SUBSTANTIAL QUANTITY OF EITHER REFINED
PRODUCTS OR CRUDE FROM ESSENTIALLY THE END OF THE INTERPRO-
VINCIAL PIPELINE TO MONTREAL. AS HONORABLE MEMBERS KNOW, THE
GOVERNMENT HAS PROPOSED AN EXTENSION OF THE PIPELINE, BUT THAT
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HAS NOT BEEN DONE. MR. DOUGLAS: IN VIEW OF THE FACT THAT AS
LONG AS THE ST. LAWRENCE RIVER IS OPEN, VERY SUBSTANTIAL
QUANTITIES COULD BE MOVED BY BARGE OR AT LEAST BY TRUCK TO
MEET AN EMERGENCY SITAUTION, HAS ANY FIRM DECISION BEEN REACHED
BY THE GOVERNMENT WITH REPECT TO EXTENDING THE PIPELINE?
HAVE THE NECESSARY DISCUSSIONS AND ARRANGEMENTS BEEN COMPLETED
AND HOW SOON DOES THE GOVERNMENT INTEND TO PROCEED WITH THIS
PROJECT? MR. MACDONALD: WITH REGARD TO THE COMMENT MADE BY
THE HONORABLE MEMBER, WE HAVE DETERMINED IN A VERY MARGINAL
SENSE THAT NEITHER BY SHIPMENT ON THE LAKES WHEN THEY ARE OPEN
NOR BY RAIL OR TRUCK TRANSPORT COULD SUFFINCIENT QUANTITIES
BE MOVED TO MEET THE DEMAND. WITH REGARD TO THE SECOND PART,
THE HONORABLE MEMBE WILL RECALL THE GOVERNMENT'S DECISION IN
PRINCIPLE TO HAVE A PIPELINE EXTENSION TO MONTREAL WAS RESISTED
BY CERTAIN OF THE PROVINCIAL GOVERNMENTS. WE NOW HAVE UNDER
DISCUSSION WITH THE OFFICIALS OF THE PROVINCE THE POSSIBILITY
OF EXTENDING THE PIPELINE. I SUSPECT THAT CURRENT EVENTS WILL
PERHAPS HAVE PERSUADED THEM MORE CLOSELY TO OUR CONCERN ABOUT
SECURITY. END TEXT.
SCHMIDT
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