The Shah of Iran--leader of one of the most important oil-producing nations as far as the western world is concerned--has been speaking about the forthcoming price rise to be decided by oil nations later this month.
SV Shah of Iran speaking to reporter
TRANSCRIPT: SEQ. 1: SHAH OF IRAN: "....to reach the price that will make it pay to develop other sources of energy. And if that could be done, and as quick as possible, then our oil could be used in petro-chemicals and instead of lasting 25 years it could last 250 years. And this will assure our nation of....I don't want to use the word eternity...but a very long, assured, future."
REPORTER: "On this particular price increase that's coming, do you accept a need not to raise the price too high because of the damage it will do to a world that appears not to be getting out of recession as fast as it could hope?"
SHAH: "Well, this is one consideration that we have for the world, when the opposite does not exist, because they are imposing on us tremendous inflation. They say that their index of inflation is about, in the States, six per cent, in West Germany, three point eight. But this is the local inflation. What we buy is much more."
REPORTER: "How concerned are you that a 15 per cent price rise would set back those countries that are beginning to recover?"
SHAH: "That depends on countries. The United States, West Germany, Japan could take it easily. It will be much more difficult for Italy, for instance, and France, and eventually England although you will be a very important producer yourself in two or three years time."
REPORTER: "How much pressure has there been from the United States to keep this oil rise down?"
SHAH: "Oh, a lot."
REPORTER: "What would they like to see? What would they find acceptable?"
SHAH: "Nothing. They would like to expect us not to rise the price of oil when they themselves increase the price of steel for instance."
REPORTER: Would you think anything under 15 per cent was a defeat?"
SHAH: "For? For us?"
SHAH: "For defeat, anything under 40 per cent is a defeat, because this is the depreciation of our purchasing power. So I'm not thinking in order of defeat. It's a kind of co-existence between us and you, who have the goods to deliver, and we have the money. But you have the edge, in some cases, and we have the edge in some other cases."
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Background: The Shah of Iran--leader of one of the most important oil-producing nations as far as the western world is concerned--has been speaking about the forthcoming price rise to be decided by oil nations later this month. The rise in crude oil prices will take place in January--and the Shah says anything less than a 40 per cent increase would be a defeat for Iran in terms of international monetary inflation. Interviewed in Iran, he was asked how much of a rise he wanted to see.