January 7, 1974

Repr Les Aspin says that Nixon Adm should deny Soviet application for $49‐million loan from Export‐Import Bank to finance exploration for natural gas in eastern Siberia, calling USSR very insecure source of energy; adm officials are much less optimistic about potential of eastern Siberian gas than they are about that of Western Siberia; Aspin attributes Nixon's hesitancy in denying loan to fact that execs of cos involved, Occidental Petroleum, El Paso Natural Gas and Bechtel Corp, contributed more than $250,000 to his Pres re‐election campaign, including $48,000 contribution from Occidental chmn Dr Armand Hammer (M)

Article notes that NYS Gov M Wilson, in his State of State message to NYS Legis to be delivered on Jan 9, will propose that state double current tax cuts provided to corps that invest in plant expansion as move to make state's business climate more attractive and improve employment opportunities; Associated Industries of NYS pres Joseph R Shaw asserts that need for legis is clear in light of expanding energy‐crisis‐related employment layoffs that further threaten econ; NYC Mayor A D Beame withholds comment on proposal; Assoc for Better NY chmn Lewis Rudin welcomes proposal as means of stimulating corporate expansion and bringing more jobs to city

Steady stream of world‐ranging tankers are supplying Exxon Corp's Bayway refinery in Linden, NJ, but Exxon official Tom Gallagher and A A Smith refuse to say how much of each refined product is produced at refinery or even to discuss how much crude is on hand; Gallagher will say that refinery has capacity to refine 275,000 bbls daily, but that Exxon refineries are running only between 80‐85% of capacity because of lack of crude; oil cos’ refusal to give data on oil supplies has led critics and some govt officials to suggest that stocks are being deliberated held back to keep prices high and that refineries are slowing down for lack of storage space; API repts that its there is about 7% more refined petroleum on hand than a yr ago; Gulf and other cos rept similar increases but note that overall increase may not apply to gasoline since under Fed directives oil cos have shifted production away from gasoline; NYS Atty Gen Lefkowitz asks US Atty Gen William B Saxbe and Fed energy chief William J Simon to set up reliable system of statistics on country's oil supply; Conn Atty Gen Robert K Killian, also endeavoring to get facts on oil supplies, found that even Army Corps of Engineers refused to give him information on oil shipments into Conn's ports; illus Bayway refinery (L)

Egypt's Amb‐designate to US Dr Ashraf Ghorbal sees possible easing of Arab oil embargo against US if Egypt and Israel reach agreement in Geneva on separation of mil forces,’ Jan 6 Face the Nation int on CBS TV; reiterates Arab oil mins’ position that embargo could be lifted once Israelis commit themselves to total withdrawal from Arab territory, backed by US; Defense Sec James R Schlesinger says that Arab countries risk increasing public demand for force against them if they carry oil curbs too far but believes that they will not push curbs to that extent, PBS int taped for showing on Jan 7; Ghorbal por (M)