PRESIDENT DWIGHT D. EISENHOWER - TYPED LETTER SIGNED 03/06/1959 - HFSID 253390

DWIGHT D. EISENHOWER
The President is about to institute his Mandatory Oil Import Program, setting quotas on imports of oil.
Typed Letter Signed: "D.E." as President, 1p, 6¾x9. The White House, Washington, 1959 March 6. To Senator Norris Cotton of New Hampshire. In full: "Thank you for the letter signed by you and your New England colleagues urging that residual fuel oil be excluded from any mandatory restrictions on imports of oil. The Director of the Office of Civil and Defense Mobilization a few days ago submitted to me his findings and recommendations on the oil import matter, and I have the whole problem under study at the present time. When I determine what, if any, action I should take your comments and representations will be most helpful. I assure you that they will have my earnest consideration." NORRIS COTTON represented New Hampshire as a Republican in the House of Representatives (1947-1954) and Senate (1954-1974, 1975). Two months later, on May 10, 1959, President Eisenhower issued Proclamation 3279 under authority in the 1958 Trade Agreements Extension Act. This instituted a mandatory protection program, which set quotas on imports of oil to balance supply and demand at an acceptable target price in the $3.00 range. Mexico and Canada were exempted from the quota program since transport was overland and considered safe from a security standpoint. Under the Eisenhower quota, imports were not to exceed 9% of domestic demand. This quota system became known as the Mandatory Oil Import Program (MOIP). It limited imports of oil east of the Rocky Mountains to a percentage of domestic crude production. On October 15, 1959, J. Roy Price, Assistant Director of the Office of Civil & Defense Mobilization, said that so far there had been no general price increase for crude oil or products because of oil import controls. Instead, prices had tended to be steady or weak, and reports indicated that there were current large inventories and ample supplies of petroleum. Eisenhower's Mandatory Oil Import Program stayed in force for 14 years until April 18, 1973, when it was ended by President Nixon. Fine condition.