When the consumers get organized and we start dealing with the producers -- if it worked as you wish -- what would you do?
Kissinger: We are organizing the consumers. Then we are organizing bilateral commissions to tie their economies as closely to us as possible. So we have leverage and the Europeans can't just move in in a crisis. We want to tie up their capital.
When the Shah sees us organizing the consumers -- he will see, if we don't do it in a way appearing threatening to him.
I perhaps should visit him in October, in connection with the Soviet trip, and talk about bilateral arrangements.
President: Does he want higher prices?
Kissinger: Yes. He has limited supplies. He knows the profit is higher on petrochemicals and that the Saudis get more from the companies in everything.
We won't be in a position to confront the producers before the middle of 1975. We have got to get rolling.
President: We have the Alaskan pipeline, and ERDA. I'm glad Scoop moved.
Kissinger: We called him yesterday and he was conciliatory. You might consider talking to him again next week. I told Dinitz he had to help us here and that Rabin had to come in early September.
President: We have to give Scoop his amendment.
Kissinger: If you get waiver authority, that Congress would have to veto, it's okay.
President: What he wants is his amendment. The supporters don't understand the waiver authority.
Kissinger: The Soviet Union won't buy going in every year for legislation. They will complain about this, but will go along with it.
A Member of Congress last night said they want a compromise.
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