Page:Kissinger's Trip (3) - November 25-29, 1974(Gerald Ford Library)(1553936).pdf/23

 a lot of talk and opinions from the Western world and Japan that the recent economic recession and inflation crisis are due to the recent rise of oil prices. Our view is that this is not the case. Before the rise of oil prices, there already existed a serious problem of inflation. And before the rise of oil prices, many of the products' prices had already gone up many times. Grain, for example, and many industrial products. With the rise of prices of many products, the losses suffered by the oil-producing countries were very great. And the time since the rise of oil prices is only about one year, starting from the Middle East war in October last year. Actually, the present situation is that the price of oil is falling down.

We agree with the view expressed by many Third World or oil producing countries. They oppose the talk about the cause of inflation being the rise of oil prices. We agree this sort of talk has no grounds. As for the rising of oil prices itself, it was only after it went up that we knew of that. We didn't encourage the rise in oil prices and didn't participate in planning it. But on the question of the Arab countries finding oil as a weapon for their struggle, we support that. Of course it's also the fact that at the present moment, following the rise of oil prices, the inflation and economic difficulties in consuming countries were also intensified. That's also true.

There are solutions for this question. One method is the method of confrontation and the other is the method of dialogue. And we noticed the method you've adopted is the method of confrontation. [Secretary Kissinger smiles.] Don't you agree?


 * It is contrary to every principle of mine. [Laughter] It is energetic shadow boxing. [Laughter]


 * I've read articles in your press regarding this question and I believe these reflect the views of the American government.


 * No, the views of the American government are reflected in my speech in Chicago. For example, many articles reflect criticism of the Shah. I am totally opposed to criticism of the Shah, because he is the crucial element of the strategy we've discussed.


 * I was not referring to that part of the press opinion that is against the Shah. They sum up only three methods: first is psychological warfare; the second is secret activity --