Page:Ford, Kissinger, Saudi Arabian Foreign Minister Umar al-Saqqaf - August 29, 1974(Gerald Ford Library)(1552770).pdf/5

 I told him it would play into radical hands leading to a confrontation between us and the embargoers.

Some of the Arab countries have no money and no oil and they took a tough game without responsibility. On price, we were the last to accept it. The increase was pushed by Venezuela, Indonesia, Iran, and then the Arabs. I am very tough on this question. The word got out we would lower the prices. Yamani said we would have an auction before we make a decision. We would have had major problems with other Arabs. We will not countenance an increase. There is talk about a surplus. I don't believe it. Countries come to me and say "we are not getting half the oil we want." There is an empire of oil. We must be very careful. The auction was stopped to avoid playing with oil.

An auction could have counter-results. If there is not a surplus, an auction would drive the price up.

That was what happened last Spring.

Are the joint commissions working well? The one on security and the one on development?

Yes. The security one is going well. On the development one, you have given us ideas. Personally I was expecting more.

Any specific ideas you have, you should let us know.

I was a member of the last committee. This is my personal opinion. We still have to discuss it.

We want the maximum cooperation, and maybe we didn't have enough imagination.

I wanted it to be more positive and stronger.

Doing it through the bureaucarcy, they always think of what you can't do. Give me your ideas and I will get them through.

Some of my thoughts would satisfy the king, and Prince Fahd and the Crown Prince. We will go as far as you want when the Middle East is done.

I have had it from Boumedienne -- whom I respect -- that they have a different lens through which they see the United States. Now they complain about the Soviet Union. No one can refuse your cooperation. This Palestinian

- XGDS