Kissinger: No to PLO

Secretary of State Henry A. Kissinger reiterated publicly today that he has “repeatedly” said “there is no possibility of negotiations (by the United States with the Palestine Liberation Organization) as long as the PLO does not recognize the existence of Israel.”

After addressing a National Press Club audience for the first time in his career, Kissinger said in response to questions that if he did not believe “that there were some possibility of progress in further negotiations, I would not, obviously, go to the Middle East,” He added, “of course, any step that is taken should only be considered as an interim step toward a final peace and that all of the other nations in the Middle East will have to participate in a negotiation for a final peace.”

Kissinger made those responses in relation to his forthcoming visit to Israel and Arab countries in the Mideast and after he was asked whether it will be “possible to have another military disengagement” in the Sinai without “further progress with Syria on the Golan Heights.

Asked to explain how the U.S. could ship was planes to the Arab countries in view of a possibility of a renewal of the oil embargo, Kissinger referred to his remarks on criteria for sales of arms at his news conference last week which included whether the U.S. has an interest in the stability and security of the countries concerned. However, he said today that in view of the visions balance of payments considerations those factor also were “in our interest but the controlling decision is not commercial.” The controlling decision, he said, “is a political one.”

OIL EMBARGO WOULD BE DEVASTATING

Kissinger’s formal speech to the National Press Club was devoted entirely to the energy problem and contained no direct references to the Arab Israeli conflict, It apparently was intended to support President Ford’s energy program which is running into strong opposition in Congress. The Secretary warned that unless “strong corrective steps” are taken in American energy consumption, “a future embargo (of oil) would have a devastating impact on American Jobs and production.”

He warned that economic distress “is fertile ground for conflict, both domestic and international,” adding that while the situation “is not as so grave” it “threatens to become so,” He forecast that the U.S. would have proposals on Feb. 6 to the international Energy Agency on Consortions to offset the dependence on imported oil. He said higher prices for oil would be forthcoming and that production of synthetics “can never compete with the production costs of Middle Eastern oil.”