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	TBP SPEECH FREE ENTERPRISE FROM AN OIL AND GAS PERSPECTIVE WTSU FREE ENTERPRISE SEMINAR RECITAL HALL OF MARY MOODY NORTHERN HALL CANYON, TEXAS FEBRUARY 24, 1982

WEDNESDAY, 11:00 A.M.

(YOU SHOULD MEET JERRY MILLER IN ROOM 116 OF THE CLASSROOM CENTER,FORMERLY UNIVERSITY COMPLEX SOUTH AT 10:45 - 10:50. JERRY WILL ESCORT YOU TO THE LECTURE HALL.) [HANDWRITTEN ADDITION: GALE SHANNON, PRES.]

I. I WANT TO THANK DEAN JERRY MILLER FOR INVITING ME TO SPEAK WITH YOU TODAY, THIS IS THE FIRST OPPORTUNITY I HAVE HAD TO SPEAK ON CAMPUS SINCE REJOINING THE WEST TEXAS STATE BOARD OF REGENTS. HOWEVER, I WAS PRIVILEGED TO SPEAK TO THE WT STUDENT LEADERSHIP GROUP LAST SATURDAY AT CETA CANYON.

[HANDWRITTEN ADDITION: REG. '69-'72, GLAD TO BE BACK ON BOAD. HIS INTEREST IS WITH WT]

II. I WANT TO SPEND A FEW MINUTES DISCUSSING THE FREE ENTERPRISE CONCEPT, PARTICULARLY AS IT RELATES TO AN OIL AND GAS COMPANY [HANDWRITTEN ADDITION: & OUR COMPANY].

A. AMERICA'S ECONOMIC GROWTH WAS ATTAINED PRIMARILY BECAUSE OF ADHERENCE TO THE FREE-ENTERPRISE SYSTEM. THE BASIC STRENGTH OF THAT SYSTEM IS THE ENTREPRENEURIAL SPIRIT—A WILLINGNESS TO TAKE RISKS TO ACHIEVE GREATNESS.

1. INDIVIDUALS AND COMPANIES IN AMERICA HAVE BEEN WILLING TO INVEST THEIR TIME AND MONEY IN A FREE MARKET FOR THE OPPORTUNITY TO EARN A PROFIT, UNENCUMBERED BY GOVERNMENT INTERFERENCE.

2. INDEED, THIS WAS A BASIC PRECEPT IN OUR NATION FROM ITS EARLY FOUNDING UNTIL MODERN TIMES.

B. HOWEVER, BEGINNING WITH THE "NEW DEAL," AMERICA LOST SOME OF ITS WILLINGNESS TO TAKE RISKS AS GOVERNMENT ASSUMED THE ROLE OF "PROVIDER."

1. THE RESULT HAS BEEN A DECLINE IN PRODUCTIVITY.
A. IN THE FINAL ANALYSIS, PRODUCTIVITY IS THE MOST CRUCIAL ASPECT OF A SUCCESSFUL ECONOMY.
2. ONE KEY TO PRODUCTIVITY IS CAPITAL INVESTMENT.
A. IN RECENT YEARS, HOWEVER, INVESTMENT HAS BEEN STIFLED BY INCREASING GOVERNMENT REGULATION...AND THE GOVERNMENTS OWN REQUIREMENT FOR CAPITAL.
B. GOVERNMENT REGULATION IS ESTIMATED TO COST INDUSTRY OVER $100 BILLION ANNUALLY FOR SUCH THINGS AS SAVING THE SNAIL DARTER.

[HANDWRITTEN ADDITION: WATER PROJECT IN TENN. EXPENSE IS RIDICULOUS. SOUTH DAKOTA- BREEDING GRAIN OF BLACK FOOTED- 40 ACRES CUT 460 AREAS]

[HANDWRITTEN ADDITION: REGULATIONS ARE UNACCEPTABLE- THE CONSUMER PAYS- BUSINESSES HAVE TO MAKE PROFITS FOR STOCKHOLDERS.]

C. GOVERNMENT INTERVENTION IN THE FREE MARKET WAS PARTICULARLY DEVASTING IN THE FIELD OF ENERGY. (1) WE LOST OUR SELF-SUFFICIENCY BECAUSE OF GOVERNMENT REGULATION AND PRICE CONTROLS WHICH HINDERED THE SEARCH FOR NEW OIL AND GAS RESERVES. [HANDWRITTEN ADDITION: IN THE EARLY '70S] (2) THE GOVERNMENT SINGLED OUT THE OIL AND GAS INDUSTRY AS A SOURCE OF ITS INCOME WHEN IT IMPOSED THE SOCALLED "WINDFALL PROFITS TAX." ['79] WHAT INDUSTRY WILL BE NEXT? WILL THERE BE A "WINDFALL PROFITS TAX" [HANDWRITTEN ADDITION: ONCE GOV'T GETS STRAINED, THEY WILL CONTINUE- FORMAT IS THERE- GOV'T WILL GO AFTER PROFITABLE BUSINESSES.] ON THE SALE OF A HOME? [HANDWRITTEN ADDITION: 10,000 HOUSE- SELLS FOR $120,000. HOW WOULD YOU FEEL IF GOV'T WOULD ALLOW YOU TO TAKE THE 90K PROFITS] (3) WE HAVE ALL HEARD A LOT ABOUT THE POSSIBLE DEREGULATION OF GAS—SOMETHING WHICH WE BELIEVE IS VITAL. HOWEVER, IF THIS DEREGULATION DOES, IN FACT, TAKE PLACE, 53% OF ANY INCOME DERIVED WOULD GO TO THE GOVERNMENT...[HANDWRITTEN ADDITION: 53 CENTS ON THE DOLLAR] EVEN WITHOUT A "WINDFALL PROFITS TAX." [HANDWRITTEN ADDITION: SEVERAL SENATORS FEEL GOV'T GET 100% OF THE INCREASE. ONE SAYS 110% WITH A STRAIGHT FACE] (4) LET ME ASK—HOW MANY BARRELS OF OIL OR CUBIC FEET OF GAS HAS THE GOVERNMENT FOUND {STRICKEN TEXT: LATELY} [HANDWRITTEN ADDITION: BUT GOV'T IS THE AUTHORITY]

C. FORTUNATELY, THE ENTREPRENEURS IN THE NATION'S PETROLEUM INDUSTRY, THOUGH PERHAPS FEWER IN NUMBERS, DID NOT LOSE THEIR SPIRIT, AND WE HAVE SEEN A REAWAKENING OF THE FREE-ENTERPRISE SPIRIT.
1. NATIONALLY, PRESIDENT REAGAN HAS RENEWED THIS SPIRIT AND REMINDED CITIZENS THAT-IT TRULY WORKS.
A. DECONTROL OF CRUDE OIL PRICING, FOR EXAMPLE, HAS INCREASED SUPPLY WITH A RESULTING DECREASE IN WORLD CRUDE OIL PRICES. [HANDWRITTEN ADDITION: LAST 6 MOS- GASOLINE PRICES DOWN. NEW FEDERALISM- GOOD- GOVERNORS WANT TO PICK AND CHOOSE- MY FEELING, DON'T PASS UP AN OPPORTUNITY TO BRING BACK GOV'T TO STATES & PEOPLE]
2. IN TEXAS, GOVERNOR CLEMENTS HAS BROUGHT A FREE-ENTERPRISE/GOOD-BUSINESS APPROACH TO STATE GOVERNMENT RESULTING IN THE MOST EFFECTIVE STATEHOUSE IN AMERICA. OTHER STATES ARE LOOKING TO TX- BILL C. GETS DOLLARS.

III. THE CONCEPT OF ENTREPRENEURSHIP CAN ALSO BE APPLIED SUCCESSFULLY WITHIN THE FRAMEWORK OF CORPORATIONS.

A. MESA PETROLEUM CO. HAS ACHIEVED UNUSUAL GROWTH DURING ITS 18 YEARS' EXISTENCE ['64]. THE PARAMOUNT REASON FOR THE COMPANY'S SUCCESS IS ITS UNDERLYING MANAGEMENT PHILOSOPHY WHICH EMBRACES THE VERY ESSENCE OF THE FREE-ENTERPRISE CONCEPT.

1. I WOULD LIKE TO SHARE SOME OF THE DETAILS OF THIS PHILOSOPHY WITH YOU THIS MORNING.

B. WE BELIEVE THAT MANAGEMENT'S PRIMARY RESPONSIBILITY IS TO ENHANCE THE INVESTMENT OF OUR SHAREHOLDERS. [HANDWRITTEN ADDITION: SHOULD BE QUITE SIMPLE. ALOT MGT DON'T ACTUALIZE THIS.] THIS REQUIRES THAT BOTH MANAGEMENT AND EMPLOYEES BE TOTALLY DEDICATED TO MAKING THE SHAREHOLDER No. 1.

1. TOO OFTEN, THE FORGOTTEN STOCKHOLDER IN A COMPANY PUTS UP HIS MONEY AND TAKES HIS CHANCES.

2. IT'S THE STOCKHOLDER WHO IS WILLING TO MAKE INVESTMENTS AND TAKE RISKS WHO IS THE BACKBONE OF OUR FREE ENTERPRISE SYSTEM.

3. OUR COMPANY RECOGNIZES THIS [HANDWRITTEN ADDITION: GOV'T DOESN'T MAKE DRIVING LANES OFF THE PEOPLE]

4. HOWEVER, MANY IN GOVERNMENT [AND MEDIA] LOOK AT BUSINESS WITH AN EVIL EYE. THEY HAVE CREATED A GOVERNMENT SYNDROME ON CORPORATIONS. THIS rv" IS UNFORTUNATE BECAUSE GOVERNMENT IS OVERLOOKING THE FACT THAT THE OWNERS OF THESE {STRICKEN TEXT: BAD} CORPORATIONS ARE MILLIONS OF [HANDWRITTEN ADDITION: PECKING AWAY AT CORP. BEING GOD- NO CORP- NO JOBS, NO TAXES,IMPORT PART OF SEVERAL CORPS. BIG BUSINESS OWNED BY PEOPLE.] CITIZENS IN OUR SOCIETY {STRICKEN TEXT: WHO BELIEVE} [HANDWRITTEN ADDITION: ARE ACTIVE PARTICIPANTS] IN THE FREE ENTERPRISE SYSTEM. [HANDWRITTEN ADDITION: POLITICIANS TALK ABOUT THE RODUFEEBUS OWNING STAND. OIL. (EXEC) DON'T OWN THE COMPANY, PEOPLE DO.]

5. MESA'S ORIENTATION TO ITS SHAREHOLDERS STARTS WITH ITS PEOPLE THEY ARE TREMENDOUSLY DEDICATED, WHICH COMES FROM BEING PROPERLY MOTIVATED WITH BASIC ENTREPRENEURIAL CONCEPTS.
A. THIS CAN BE DONE MOST EFFECTIVELY BY GIVING ALL EMPLOYEES "A CUT OF THE PIE"—EVERYONE LIKES TO MAKE MONEY—IT IS A VERY STRONG MOTIVATIONAL TOOL. IN FACT, I AM SURE IT IS THE STRONGEST—AND BY CREATING A TEAM CONCEPT WITH EVERYONE WORKING TOWARD A COMMON GOAL. [HANDWRITTEN ADDITION: MAKES A LOT OF DIFFERENCE IN RESULTS OF THE COMPANY] (1) OVER 95% OF MESA'S EMPLOYEES ARE ALSO STOCKHOLDERS. THIS IS ACHIEVED THROUGH A STOCK PURCHASE PLAN. (A) MESA MATCHES DOLLAR FOR DOLLAR THE EMPLOYEES CONTRIBUTION WHICH CAN EQUAL 6% OF HIS SALARY. (2) ALSO, EACH EMPLOYEE PARTICIPATES IN A NONCONTRIBUTORY PROFIT SHARING PLAN WHICH HAS BEEN INVESTED HEAVILY IN MESA COMMON STOCK AND IS CURRENTLY INVESTED PRIMARILY IN MESA ROYALTY TRUST. (A) SINCE ITS INCEPTION THROUGH DECEMBER 31, 1931, THE PLAN HAS AVERAGED 23% ANNUAL GAIN ON INVESTMENT.
(B) FROM 1964 THROUGH 1981, MESA CONTRIBUTED $10 MILLION TO THE PLAN, AND EMPLOYEES MADE $6 MILLION. [HANDWRITTEN ADDITION: SILENT PAY CHECK-EXCITING DAY]
(C) IN 1980, 26% OF OUR EMPLOYEES MADE MORE FROM THEIR PROFIT SHARING TRUST THAN THEY DID ON SALARY. (3) {STRICKEN TEXT: OUR KEY PERSONNEL ARE ALSO HOLDERS OF STOCK OPTIONS.} YOU WILL [HANDWRITTEN ADDITION: MGT SHOULD BE SIZABLE STOCKHOLDERS IN COMPANY- THINK LIKE THE STOCKHOLDERS.] FIND THAT MESA'S MANAGEMENT LOOKS AT SITUATIONS VERY MUCH LIKE STOCKHOLDERS AND NOT LIKE PROFESSIONAL MANAGERS PERPETUATING THEIR JOBS. (4) THE JOBS CREATED BY MESA HAVE BEEN AT NO COST TO THE GOVERNMENT. [HANDWRITTEN ADDITION: NOW 2 BILLION COMPANY] BUT WHAT HAS BEEN THE COST TO SOCIETY OR ALL THE NON-PRODUCTIVE JOBS CREATED BY THE PERPETUATING BEAURACRACY FOUND IN GOVERNMENT? [HANDWRITTEN ADDITIOIN: PEOPLE EVEN WIN]

6. AN IMPORTANT FACTOR IN MOTIVATION IS LEADERSHIP.
A. I THINK I HAVE BEEN SUCCESSFUL IN INSTILLING ENTREPRENEURIAL INSTINCTS OR NURTURING THEM IN MOST OF OUR PEOPLE. [HANDWRITTEN ADDITION: WORK HARD AT IT. NEED RIGHT PLAYERS TO WIN.] (1) THEY ARE WILLING TO TAKE RISKS. THEY ASSESS RISKS WELL AND CAN MAKE DECISIONS QUICKLY. I BELIEVE THIS HAS A GREAT DEAL TO DO WITH SUCCESS. [HANDWRITTEN ADDITION: THIS IS PART OF...]
B. IT IS IMPORTANT TO SHOW YOUR PEOPLE THAT THEY ARE NO. 1. YOU LEAD THEM TO THAT POINT AND LEAVE NO DOUBT IN THEIR MINDS. (1) YOU MUST INSTILL A TOTAL SENSE OF PROFESSIONALISM. IF YOU LOOK LIKE A BUSHER, YOU WILL PLAY LIKE ONE. [HANDWRITTEN ADDITION: TBP BASKETBALL- CAN'T RUN FAR ENOUGH TO...LEAVES...] (2) IT MAY SOUND CORNY, BUT IF YOU BELIEVE, THEN YOUR EMPLOYEES BELIEVE. [HANDWRITTEN ADDITION: IF YOU ESTAB. YOURSELF AS LEADER- BELIEVE IN WHAT YOU ARE DOING- PEOPLE WILL BELIEVE] (3) GOOD COMMUICATIONS ARE VITAL IF EMPLOYEE MOTIVATION IS TO BE CHANNELED TOWARD A COMMON GOAL.

C. THE RESULT IS A HIGHLY MOTIVATED, COHESIVE TEAM WORKING TOWARD THE SAME SAME GOALS. [HANDWRITTEN ADDTION: EVERYONE UNDERSTANDS WHAT YOU ARE TRYING TO DO.]

1. CONSEQUENTLY, MESA ENJOYS EXTREMELY HIGH PRODUCTIVITY FROM ITS EMPLOYEES.
A. MESA IS HISTORICALLY A LEADING COMPANY AMONG THE FORTUNE 1000 IN THE RATIO OF ASSETS TO EMPLOYEES. WE CURRENTLY HAVE ASSETS OF APPROXIMATELY $2 BILLION AND 900 EMPLOYEES. [HANDWRITTEN ADDITION: ROCK BOAT]
B. WE HAVE A SMALL GROUP, WORKING HARD. [HANDWRITTEN ADDITION: KEEPS BACK STABBING OUT OF WAY] THERE ARE NO WARM BODIES—EVERYONE IS A CONTRIBUTOR—AND WE KEEP SELLING THIS THEME. [HANDWRITTEN ADDITION: LADY RETIRED FROM MAJOR OIL CO- HARD WORKING-PROFESSIONAL- RECEPTION DESK- MAGAZINE AND GET SOMETHING TO DO...1 YR LATER, THANKED SENIOR PERSON, GOT DIRECTION.] (1) OUR PEOPLE ARE GIVEN RESPONSIBILITY AND THE AUTHORITY TO GET THE JOB DONE. FEWER PEOPLE WITH MORE AUTHORITY INCREASES PRODUCTIVITY AND ENABLES THE COMPANY TO REACT MORE QUICKLY TO OPPORTUNITIES THAN THE COMPETITION. [HANDWRITTEN ADDITION: WHEN FACTS ON TABLE, THEN MAKE DECISION.] (A) FEWER AND MORE PRODUCTIVE EMPLOYEES MEAN WE ARE ABLE TO PAY MORE.

D. AGAIN, BASIC TO ALL OF MESA'S MANAGEMENT PHILOSOPHY IS THE FREE-ENTERPRISE ORIENTED CONCEPT OF PUTTING THE SHAREHOLDER'S INTEREST FIRST.

1. TOO OFTEN, COMPANY MANAGEMENTS ARE MORE CONCERNED WITH THEIR OWN PRESERVATION THAN ENHANCING THEIR SHAREHOLDERS' INVESTMENTS. THEY ARE GENERALLY NOT GOOD RISK TAKERS AND THEIR COMPANIES SUFFER FROM A LACK OF PRODUCTIVITY.

2. {STRICKEN TEXT: COMPANIES WITH THAT ATTITUDE DO NOT COMMAND A REASONABLE P/E RATIO SUCH AS MESA HAS ENJOYED, BECAUSE THEIR SHAREHOLDERS LACK CONFIDENCE IN THEIR ABILITY TO "MAKE THINGS HAPPEN".}

E. PERHAPS THIS "SHAREHOLDERS FIRST" POLICY IS BEST ILLUSTRATED BY THE RESULTS THEMSELVES.

1. MESA WAS A LEADER IN ESTABLISHING THE ROYALTY TRUST CONCEPT AS A MEANS OF ENSURING THAT SHAREHOLDERS RECEIVE THE FULL VALUE OF THEIR ASSETS. [UNREADABLE TEXT]
A. THE ROYALTY TRUST GRANTS EACH SHAREHOLDER A DIRECT OWNERSHIP INTEREST IN PRODUCING PROPERTIES, PROVIDING A DIRECT INCOME STREAM WHICH FORCES THE STOCK MARKET TO RECOGNIZE THE VALUE OF THE UNDERLYING ASSETS.

2. THIS "SHAREHOLDER FIRST" POLICY IS ALSO REFLECTED BY THE RESULTS OF A HYPOTHETICAL SHAREHOLDER'S INVESTMENT IN THE COMPANY'S COMMON STOCK.
A. A $10,000 INVESTMENT IN 19614 WOULD HAVE GROWN TO $284,000 AS OF DECEMBER 31, AN APPROXIMATE 2,742% INCREASE OR 21% COMPOUND ANNUAL RATE OF GROWTH.

IV. MANAGEMENTS OF MANY LARGE CORPORATIONS ARE NOW SAYING THAT THEY WANT TO INSTITUTE AN ENTREPRENEUR-TYPE MANAGEMENT.

A. ARE AND MORE, THEY ARE REALIZING THAT MANY SMALLER COMPANIES ARE BETTER MANAGED AND MORE EFFICIENT.

V. WITH AN IMPROVED POLITICAL CLIMATE PROVIDING MORE INCENTIVE FOR THE RISK TAKER, A REJUVENATED CONFIDENCE IN THE ABILITY OF FREE MARKET FORCES TO IMPROVE THE LIFESTYLES FOR ALL AMERICANS, AND THE INCREASING RECOGNITION BY CORPORATE MANAGEMENTS OF THE NEED FOR ENTREPRENEURSHIP WITHIN THEIR COMPANIES, THE NATION MAY WELL BE ON THE ROAD TO REGAINING WORLD ECONOMIC LEADERSHIP.

VI. IN CONCLUSION, THE FREE ENTERPRISE SYSTEM IS WHAT OUR COUNTRY IS ABOUT.

A. AS LONG AS THE PRIVATE SECTOR IS ALLOWED TO TAKE CHANCES IN AN ENVIRONMENT FREE FROM GOVERNMENT INTERFERENCE, WE ALL WIN.

1. STOCKHOLDERS EARN A RETURN ON THEIR-INVESTMENTS.

2. INDUSTRY GROWS—CREATING JOB OPPORTUNITIES FOR OUR CITIZENS.

3. A HEALTHY ECONOMY PRODUCES TAX INCOME TO FINANCE SERVICES OFFERED OUR CITIZENS BY THE GOVERNMENT.

B. THE FINANCIAL SUCCESSES GENERATED BY THE FREE ENTERPRISE SYSTEM ALSO ENCOURAGE VOLUNTEERISM AND SOCIAL RESPONSIBILITY SO VITAL TO OUR COUNTRY'S WELL BEING.

1. THOSE WHO HAVE BEEN SUCCESSFUL IN BUSINESS HAVE A RESPONSIBILITY TO PROVIDE PERSONAL AND ECONOMIC LEADERSHIP TO HELP OUR SOCIETY MEET ITS HUMANITARIAN, EDUCATIONAL AND CULTURAL OBLIGATIONS. [HANDWRITTEN ADDITION: INTEREST IMPORTANT-PUT SOMETHING BACK INTO THE SYSTEM.] [HANDWRITTEN ADDITION: SAN AN- LA QUINTA. SAN B. 11/F MAKES $ OUT OF SEPT AND DOESN'T PUT IT BACK. THEY SHOULD TAKE AUTHORITY AWAY FROM THEM.]

2. IT IS PARTICULARLY IMPORTANT FOR GRADUATES OF UNIVERSITIES, SUCH AS WEST TEXAS STATE, TO PARTICIPATE IN THE FINANCING OF THE SCHOOL'S OPERATIONS. [HANDWRITTEN ADDITION: AFTER YOU HAVE LEFT- DON'T FORGET WHERE YOU CAME FROM. GOV'T CAN'T FUND. YOU HAVE OBLIGATION TO YOUR SCHOOL.]

3. THIS SUPPORT WILL HELP PERPETUATE A FREE ENTERPRISE SYSTEM THAT HAS BEEN SO GOOD TO OUR COUNTRY AND THE PEOPLE OF THE WORLD.

C. I WILL BE PLEASED TO ANSWER ANY QUESTIONS.

[HANDWRITTEN ADDITION: 11:45 COMPLETED]

[HANDWRITTEN ADDITION: Q&A

[HANDWRITTEN ADDITION: 1) TRENDS IN ACQUISITIONS. WORRY ABOUT BEING BROUGHT OUT. CONOCO PERCH BY DUPONT, MARATHON BY US STEEL. $14- ASSETS OF $40, FEAR OF TAKE OVER. MOTHER & DAD-ONE NAME THING FOR YOU- GOOD LUCK- FEW FEARS- FEEL LIKE WE HAVE BEST OIL CO. IN BUSINESS PREPARED, KNEW WHERE WE WILL GO- NOT GO WITH $21- NOT- MAMRATHON & CONOCO- SOLD OUT, 1/2. DIDN'T TAKE CARE OF YOUR STOCKHOLDERS, NONE OF YOUR BUSINESS. IF MESA GOES- WILL GET TOP DOLLAR, DON'T WANT LEGISLA. TO STOP TAKEOVERS- PLAY THE GAME.]

[HANDWRITTEN ADDITION: 2) WHY STOCK SO LOW- LOOK AT WHOLE NYST- HIGH 34, OTHER OIL COMPANIES- OVER SUPPLY OF OIL WORLD WIDE- 45% OF OUR OIL IS IMPORTED. OIL IS THEN OF UTMOST IMPORTANCE TO CO.- MIDEAST-WS (FIN. WHAT'S IN NY- MUST NONE WITH THE WS- A TOLL FOR CO. TO USE.) GAS BUBBLEOVER SUPPLY OF GAS IN CO.- OK- BRINGS PRICE DOWN. WS TURNED BACK ON US- JUST WAIT IT OUT- PSYCHOLOGICAL- THE PROBLEMS STARTED WITH SEVERAL PRESIDENTS AGO. NOT HAVE PRESIDENT TRYING TO CHANGE THESE THINGS- WILL BE TOUGH.]

[HANDWRITTEN ADDITION: 3) GOV'T CHANGES EVERY 4 YEARS- CAN DO IT IN SO SHORT A TERM- CAN MAKE CROSSROADS- CAN ACCOMPLISH THINGS- IF LEADS CAN GET RESULTS. WORKING MAN IS BEGINNING TO SEE THE WASTE OF SOURCE OF SOC. WELFARE PROGRAMS.]

[HANDWRITTEN ADDITION: 4) OPEC- LIST POWER? WILL S. ABARIA CUT BACK ON PRODUCTION? YES WOULD CUT BACK 6.2 MIL.- NOW DOWN TO 7 MIL/ DAY- SOME ROOM TO GO DOWN. COULD GO DOWN TO 5 MIL/ DAY WITH DISRUPTION TO THEIR ECONOMY- THEY ARE OVER PRODUCED TO BRING OVER OPEC.]

[HANDWRITTEN ADDITION: 5) REAGAN PROGRAM- ANY AREA THAT YOU DON'T AGREE WITH?- WISH HAD NOT CUT BACK TAXES SO QUICKLY. [UNREADABLE TEXT] IS OK- HELD UNEVEN IN DEF SPENDING.- WILL NEED SOME TAX- PROB. CASE DEF. SPENDING- MAYBE BY SURTAX- THINGS UNFOLDING- REAGAN OPPOSITE TO CARTER- DOESN'T WAIVER- R SLOWNESS TO WEAKNESS.]

[HANDWRITTEN ADDITION: 6) WILL WFPT BE REDUCED OR DONE AWAY WITH? DEPENDS ON ADMIN. IN WASH. R COULD BE TRACKING THATCHER IN ENGLAND- PASSED TAXES 3 TIMES ON OIL INDUSTRY. COULD HAPPEN IN US. COULD HAPPEN ON DECENTRL OF NAT. GAS- FONDEAU GOV'T IN CANADA 59-79- SOLD OUT DURING JOE CLARK'S ADMIN. (9MOS) FONDEAU WAS SOCIALIST...GOV'T FELL. T. CAME BACK AND WON WITH MAJORITY- NORA SOLD OUT DURING CLARK-T. DISASTROUS- TAXED OIL INDUSTRY- ABOUT KILLED OIL INDIRECTLY IN CANADA.]

[HANDWRITTEN ADDITION: 7) THETNO CANADA- GOV'T OWNED OIL CO. GOV'T OWNED BUSINESSES IS SAD CASE- CAN'T COMPETE WELL. SHOULD HAVE BEEN LEFT UP TO PRIVATE SECTOR.]

[HANDWRITTEN ADDITION: 8) U.S EXPORTS? DOESN'T HAVE ANY GOING OUT.]