CONTENTS WITNESSES THURSDAY, DECEMBER 19, 1968 Kenneth M. Curtis, Governor of the State of Maine... Robert N. Giaimo, Representative in Congress from the State of Connecticut Peter N. Kyros, Representative in Congress from the State of MaineWilliam H. Bates, Representative in Congress from the State of Massachusetts... Walter E. Corey, III, Federal-State Coordinator, State of Maine_ Page 6 115 116 123 124 MONDAY, DECEMBER 30, 1968 Joseph Hernon, New England Fuel Institute, accompanied by: Bernard 138 Abraham Ribicoff, U.S. Senator from the State of Connecticut. 142 165 A. Thomas Easley, executive vice president, New England Council for 180 MONDAY, JANUARY 13, 1969 Edmund S. Muskie, U.S. Senator from the State of Maine.. 205 213 217 Eugene P. Foley, president, International Ore & Fertilizer Co., accompanied by John Buckley, special consultant___ 245 THURSDAY, MARCH 14, 1969 C. R. Smith, former Secretary of Commerce_ 253 270 ALPHABETICAL LIST OF WITNESSES Bates, William H., Representative in Congress from the State of Massachusetts 123 Buckley, John, international oil consultant, Occidental Petroleum Corp... 245 124 6 Foley, Eugene P., president, International Ore & Fertilizer Co. Easely, A. Thomas, executive vice president, New England Council for 180 245 115 Hathaway, William D., Representative in Congress from the State of 165 Hernon, Joseph, New England Fuel Institute... 138 Kennedy, Edward M., U.S. Senator from the State of Masachusetts. 213 116 270 205 O'Hara, Donald C., executive vice president, National Petroleum Refineries Association_ 217 Ribicoff, Abraham, U.S. Senator from the State of Connecituct_ 142 138 253 Whiting, Richard, New England Fuel Institute_ 138 LETTERS, STATEMENTS, AND DATA Army, Department of, letter from Stanley R. Resor, Secretary, to Senator McIntyre Barr, Joseph W., Under Secretary of the Treasury, exchange of letters with Senator McIntyre... Page 203 203 Bates, William H., Representative in Congress from the State of Massachusetts, statement of.. 123 183 88 Buckley, John G., international oil consultant, reprint of statement entitled "The Machiasport Refinery and the U.S. Balance of Payments”. Bureau of Customs regulations. Burke, James A., Representative in Congress from the State of Massa- Chronological history of the Maine Foreign Trade Zone application. Engelberg, N. Norman, Chairman of the Examiners Committee, For- Map showing location of U.S. foreign trade zones and subzones. Smith, C. R., Secretary: 216 124 178 178 19 27 17 Letter to Senator McIntyre, dated December 24, 1968- 134 199 Telegram to Senator McIntyre.. 131 Conte, Silvio O., Representative in Congress from the State of Massachusetts, statement of__ 179 Cotton, Norris, U.S. Senator from the State of New Hampshire, statement of 2 Foreign Trade Zones Board, list of members. Federal Steno Services, letter from General Accounting Office. Engelberg, N. Norman, Chairman of the Examiners Committee, Foreign Executive Order 7104__ 178 52 201 45 Foreign Trade Zones Board orders, summary of.. 29 Foreign Trade Zones Board regulations, reprint of.. 102 53 Muskie, Edmund S., U.S. Senator from the State of Maine: Prepared statements__ Heckler, Margaret M., Representative in Congress from the State of International Ore & Fertilizer Co., statement of Eugene P. Foley, president. Kyros, Peter N., Representative in Congress from the State of Maine, statement of Hathaway, William D., Representative in Congress from the State of Giaimo, Robert N., Representative in Congress from the State of Easley, A. Thomas, executive vice president: National Petroleum Refiners Association: Letter to C. R. Smith, Secretary, Department of Commerce_ Moriarty, F. C., president, letter to Governor Curtis.. Statement of Donald C. O'Hara, executive vice president.. New England Council for Economic Development: Buckley, John G., article by.... Prepared statement.. Telegram to Senator McIntyre.. 5, 210 218 218 234 225 217 183 194 3 O'Neill, Thomas P., Jr., Representative in Congress from the State of Page 176 Pastore, John O., U.S. Senator from the State of Rhode Island, statement of_ 173 President Lyndon B. Johnson, reprint of letter received from New England Prouty, Winston L., U.S. Senator from the State of Vermont, statement of 175 203 197 142 Shapiro Oil Co., sample fuel oil contract__ 152 Shell Petroleum Products, sample fuel oil contract. 152 207 Stafford, Robert T., Representative in Congress from the State of Vermont, telegram to Senator McIntyre... 137 St Germain, Fernand J., Representative in Congress from the State of 216 Tables: List of Foreign Trade Zone Board actions on applications for zones and subzones__ 115 Price comparisons for gasoline and No. 2 fuel. 236 Treasury, Department of, letters between Joseph W. Barr, Under Secretary and Senator McIntyre. 203 U.S. balance of payments, article with reference to.. U.S. Foreign Trade Zones and Subzones, map showing location of 183 27 202 Wyman, Louis C., Representative in Congress from the State of New 177 FOREIGN TRADE ZONE APPLICATION OF THE STATE OF MAINE THURSDAY, DECEMBER 19, 1968 U.S. SENATE, BANKING AND CURRENCY COMMITTEE, Washington, D.C. The subcommittee was convened at 10 a.m., in room 5302, New Senate Office Building, Senator Thomas J. McIntyre presiding. Present: Senators McIntyre and Brooke. Senator MCINTYRE. The Subcommittee on Small Business of the Banking and Currency Committee will come to order. We are here today to take testimony regarding certain procedural irregularities regarding the Machiasport project to build an oil refinery in New England. The project involves the establishment of a foreign trade zone at Portland, Maine, and a subzone at Machiasport, Maine, and the construction of an oil refinery with a capacity of 300,000 barrels a day in the subzone. Occidental Petroleum Corp., of Los Angeles, plans to build the refinery. The refinery will be specifically designed to meet New England's unique oil needs. Unlike other regions, New England uses more heating oil than it does gasoline. Currently, there is not a refinery in New England, although the area consumes over 900,000 barrels of oil a day, including 21 percent of the Nation's home heating oil. Because there is no refinery in New England, the major oil companies completely control the New England oil supply and, hence, the price of oil. The independent deep water terminal operators, who depend on the majors as their sole source of supply, must also compete with the majors. The result is that the price of oil to the independents has increased sharply in the last few years. The New England Fuel Institute, a nonprofit organization which includes 1,144 retail distributors in New England, reports that wholesale prices charged independent terminal operators by the majors have increased 28.5 percent over the last 5 years while the retail prices, which the majors also control, have risen only 12.5 percent in the same period. In urging the rapid approval of the project, the Fuel Institute called the price escalation, and I quote from them, "eloquent testimony to the unsatisfactory price and supply situation which has developed." This uncompetitive situation has hurt both the people of New England as well as the small businessman. '(1) |