MEDFORD MAIL TRIBUNE, MEDFORD, OREGON
ioviet Oil Offensive tates Concern m American Industry
MtMY. AUGUST 25. 1963
By NEIL A. MARTIN
United Preu International
Washington-niPll - Congress
men have referred to it as
economic banditry and cold
war politics, while petroleum
industry leaders say it is un
fair competition and a threat
to the security of the free
world markets.
No matter how they des-
cribe it, they are all talking
about the Soviet oil offensive
a rising gusher of cheap
crude oil from behind the
iron curtain which is oozing
into the West's once exclu
sive free world markets.
In its bid to share and even
tually dominate the world oil
trade, Moscow is flooding the
international market with
crude and refined petroleum
hnnine to out-produce, out
bargain and undersell all com
petitors.
Production Has Increased
Since 1950, Soviet crude
production has increased four
times until today tne u&sit is
the world's second largest
producer with output of about
3.3 million barrels per aay
The United States retains su-
' premacy with 7.3 million bar
rels per day while Venezuela
is third with 3.2 million barrels.
Last January, the Soviet
news acency Tass announced
cross production of Soviet
crude oil for 1962 had exceed
ed 1961 by 14 per cent - an in
crease much higher than ex
pected. And at the outset of
the Soviet Union's present
seven-year-plan (1959 - 65),
Premier Nikita Khrushchev
boasted that the USSR would
produce oil at the rate of three
billion barrels a year by 1972.
Unlike most Russian boasts,
this one could not be brushed
aside. U.S. officials are voic
ing growing concern, not only
about the cold war implica
tions of Soviet oil but the eco
nomic security of the large
American oil companies
which conduct vast production
and retail operations overseas.
Worried Congress
A worried Congress has
made several studies of the
Soviet oil offensive the lat
est by a five-man commission
of the House Foreign Affairs
committee last February. In
the meantime, the Department
of Interior asked its national
petroleum council, an indus
try advisory group, to keep
up a running survey on So
viet exports and production.
Behind the rapid Soviet
expansion Western officials
detect an attempt by Moscow
to gain the economic depend
ence of nations which former
ly bought from the West and
are now buying from Mos
cow.
In case of an International
crisis, officials point out, e
sudden cut in these nations'
oil supply by Moscow could
have far ranging repercus
sions. Deny Implications
Soviet officials deny any
cold war implications are at
tached to Moscow's oil policy,
attributing it to "growing de
mands of the national econ
omy of the USSR and other
countries in the socialist com
munity." American oil officials, how
ever, point out that Moscow
exported 24 per cent (800,000
barrels per day) of all the oil
it produced in 1961 and Soviet
exports are still rapidly ris
ing. The political implication of
the issue was probably best
reflected by a Soviet journal
ist in a Moscow publication,
"International Affairs." He
wrote:
"Oil concessions represent
the entire edifice of Western
political Influence in the
world, of all military bases
and aggressive blocs. If this
fnnndation cracks, the entire
edifice may begin to totter
and then come tumbling
down."
Three-D Policy
Sen. A- S. (Mike) Monroncy,
(D-Okla.), has termed this a
three-D Soviet policy "de
velopment, disruption and de
pendence" to make some
Western nations and underde
veloried countries entirely de
pendent on Moscow for eco
nomic survival.
In Africa and Asia, the So
. . . ;
'GERMANY 'OlANOj '
U.S.S.R.
SHOWS PIPELINES Pipelines and stor
age tanks erected at Schcdt, East Germany
(top) for receipt of low-cost Soviet oil, is
shown in picture taken in .Tunc, 1962. UPI
newsmap at bottom shows the route of a
3,595-mile pipeline which will transport oil
to other East European nations. (UPI)
viet Union has followed a
dual policy: first, to encourage
and lend the necessary tech
nicians and materials to de
velop local oil industries, and,
second to supply a low cost
economic base for operation
via Communist oil.
In Ethiopia and Pakistan,
Soviet geologists have been
contracted to carry out a pro
gram of prospecting. Moscow
is aiding India In natural
gas and oil prospecting and
refinery construction. Oil
processing industries are be
ing developed in Egypt which
are designed to meet tne re
quirements of Soviet crude
oil. And a series of contracts
between Ceylon and the So
viet bloc has made that tiny
nation almost entirely depend- j
ent on Communist oil.
Opening Scheduled
The scheduled opening in
November of the Soviet bloc's
so-called friendship pipeline,
which stretches 3,595 miles
from Kuibyshev in the So
viet Union to Czechoslovakia
and East Germany, has raised
gushers of fear among West
ern oilmen.
The prospect of this Soviet
oil at the threshold of West
ern Europe stands as a form
idable economic threat to the
large international American
companies which have market
outlets in most of Free Europe.
These companies have oro-
tcstcd repeatedly that they are
losing their markets bccau.se
they can't compete with Mos
cow's bargain-basement prices
which are well under world
prices.
In 1962, the domestic indus
try employed 1,030.293 work
ers In producing, refining and
selling. This does not include
the millions involved in the
related supply, manufacturing
and chemical Industries.
Total Value of Oil
In terms of capital, the to
tal value of domestic crude
oil and natural gas in 1962
amounted to more than $10.6
billion. Oil and gas produc
tion is a major industry In
many states.
Several proposals have been
offered by congressmen to
counter the Soviet competi
tion. Sen. Jacob K. Javlts, (R
N.Y.), has suggested that U.S.
antitrust laws be amended to
permit American oil compa
nies to form alliances when
they are in the interests of na
tional security or conform
with U.S. foreign policy.
Other suggestions have in
cluded firm maintenance of
the controversial 27 V4 per
cent oil depletion tax allow
ance, a revision of the nation
al security section of the for
eign trade bill to curb im
ports, federal assistance in ex
ploring and developing new
reserves, and greater free
world cooperation to combat
the Soviet price war.
Sen. Hubert Humphrey (D
Minn.), once said:
"We must always, it seems
to me, keep under close scru
tiny the shifting trade tactics
of the Soviet bloc, to see what
kind of defensive measures
need to be taken against
them."
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S1H GREEN STAMPS
Four Persons Hurt
In Area Accidents
Four people were injured
in two accidents on Jackson
county highways Friday night,
state police reported.
A rear-end collision on In
terstate 5 north of Central
Point resulted in injuries to
Kenneth William Noal, 31, of
1876 Roberts rd., and his two
sons Ronald, 9, and Kerry,
a.
Ncal and his son, Kerry
were treated as out-patients
at Sacred Heart hospital. Ron
ald was reported in fair con
dition with a broken leg.
The Ncal car was north
bound in the outside lane
when struck in the rear by
a California car which caused
the Neal car to spin around
! and upset in a ditch. The
California driver was not nt
the accident scene when state
police arrived.
Douglas Sacchi. 22, of 240 ',
North Holly St., Medford, was
treated for lacerations of the
head and body and released
from Rogue Valley hospital j
Saturday morning after he i
was thrown from his car on
Jackson st. at McAndrews rd.
State police said the car
apparently was traveling at
a high rate of speed, slid a
distance and upset.
Area Residents Climb
Mountain in Record Time
A Medford High school
cross country track coach.
accompanied by a 67-year-old
Rogue valley rancher, last
Sunday scaled Mt. McLough-
lin in what they believe to
be an unofficial world's rec
ord time.
Wearing only traditional
track garb and carrying some
water and a few sugar cubes,
the pair left the base of the
mountain, walking and run
ning where the terrain would
allow, and finished at the top
nearly two hours later with
in minutes of each other.
The two mountain runners
arc Bob Huff, who, at the age
of 32, weighs 165 pounds and
stands 5 feet 11 inches, and
Ernie Lyman, 87, who is an
inch shorter but weighs more.
As Daily Exercise
Huff made the trek as
part of his dally exercise to
keep in shape for his coach
ing position at the high
school, while Lyman made
the trip in keeping with the
kind of training he has been
keeping at as long as he can
remember.
Mt. McLoughlin, which Is
9.495 feet high, was, as Huff
said, as good an obstacle
course as any.
Starting from Four Mile
Lake rd. at the base of the
mountain, Huff's elapsed
time for the climb took 1
hour, 44 minutes, 45 seconds,
beating the old record of two
hours, five minutes. Lyman's
time was 1 hour, 51 minutes,
35 seconds. The Sunday be
fore, Lyman and Huff scaled
the mountain in 1 hour and
58 minutes.
The mountain trail, Huff
said, has been used for years
for an obstacle course for lo
cal runners who need a long
workout. Since AAU offi
cials have never been along
to time any of the runs, no
official records have been
kept, but runners can turn in
unoffical times by using a
stopwatch.
Phoenix Remodeling
Will Be Completed
By School Opening
Phoenix-Remodeling of the
high school to provide addi
tional classrooms will be com
pleted by the time school
opens, according to Phoenix
School District Superintend
ent E. R. James.
Remodeled areas will in
clude a large group instruc
tion room and three regular
classrooms plus counseling of
fices. A new industrial arts and
vocational agriculture build
ing is being constructed and
should be ready for occupan
cy late this fall, James said.
Additional physical education
and lunchroom facilities will
be completed later in the
school year.
Eight additional language
laboratory stations are being
added to the 12 booths al
ready used in the foreign lan
guage laboratory. Purchase
and installation was through
the National Defense Educa
tion act funds.
Modern Physics Equipment
Equipment for the modern
physics approach now being
introduced in the high school
also was secured through the
National Defense Education
funds.
Aspects of the modern ap
proach to mathematics are 1o
be introduced into the fifth
and sixth grades and will be
continued in the high and
junior high schools.
The Pnoenix High school
English department again will
use qualified reader aides for
correcting English themes un
der a program authorized two
years ago by the Phoenix
school board and operated
through the joint efforts of
the Phoenix school officials
and Dr. Arthur Kreisman, of
Southern Oregon college.
A teacher clerical aide has
been employed in the high
school for the new year,
James said.
Teachers Attend Courses
During the summer about
40 teachers from both - ele
mentary and secondary levels
throughout the district at
tended institutes and workshops.
Residents Ask Road
Be in County System
Two residents on Canal st.
near Orchard Home dr. Friday
asked the Jackson county
court and county engineer to
include connecting Archer dr.
in the county road system.
Mrs. Randolph Hugdahl,
2230 Canal St., and Mrs. Genie
A. Putman, 2210 Canal st.,
particularly asked the coun
ty court authorize patching
of the section near Canal st.
Overflowing of the irrigation
canal due to fall rain storms
has washed out much of the
former granite base, they said.
County officials said it
would cost the area residents
$800 to grade, install drive
way culverts and add some
granite or gravel, plus addi
tional money to repair the
particular section requested.
The county would start
work on the road early next
May.
Mrs. Hugdahl said the road
is so bad that the postal serv
ice may require the residents
to move their mailboxes to
a nearby road in better shape.
These included mathematics
and science institutes, a con
temporary mathematics work
shop for elementary teachers,
team teaching workshops, the
able and gifted program,
counseling and coaching.
Three more teachers obtained
their masters' degrees and
others completed summer col
lege courses.
New and replacement teach
ers in the high school are
Everett Cade, mathematics
and science; Miss Sally Mauld
ing, library and English; Mrs.
Laura Felt, English and jour
nalism; Glen Aiken, social
studies and counseling; Mrs.
Carol McDaniel, art and li
brary, and Mrs. Janet Clark,
English.
Added to School Staff
Larry Yarnell and Mrs.
Olga Holland have been add
ed to the junior high school
staff for language arts. Mrs.
Jane Germer and Miss Mar
garet Ann Bolz will be new
first grade teachers at the
Phoenix grade school; Mrs.
Iris Stewart, fifth grade and
Gale Eastwood, sixth grade.
Miss Jeanne Warnock will be
teaching third grade at the
Talent grade school.
High school fees payable
upon registration will total
$16.50, James noted. This in
cludes book fee, towel fee and
student body card. The book
usage fee of $9 is required
since state law does not per
mit purchase of high school
texts by the school district.
This covers work books and
current events papers.
The towel fee of $1 also is
required. The student body
activity card is $6.50. Stu
dents wishing to purchase a
school year book may reserve
a copy by paying $4 additional.
for your greater
convenience .
PPfi-L fill , ,
BE PAio
As an additional service to customers, Pacific Power I Light Co. hai
completed arrangements for a pay station at White City.
When accompanied by service bills, payments may
now be made at the
CASCADE VARIETY In The CASCADE
SHOPPING CENTER AT WHITE CITY
Payments made by mail should be addressed to Pacific Power 4
Light Company; P.O. Box 1592; Medford, Oregon
Pacific Power & Light Go. 216 W. Main St., Medford
Richfield Operators
To Meet on Wednesday
Richfield Oil Corporation
service station operators will
meet at Crater Auto Supply
Wednesday to discuss fall and
winter sales promotion plans
according to E. h. Kennedy,
Richficld's agent.
I. W. Mathews, Richfield
retail sales supervisor, and
Everett Morchcad, Richfield
training representative, will
conduct the session which will
draw operators from the Med
ford area.
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