Le R March 19, 10?SeoRey 1954 FUEMMING ’ MEMORANDUM FOF JR Vers 4 © G4 bay When | spoke to Mr White and Mr, Ryan before lunch relative to the subject in which they are interested (paragraph 16 of NSC 97/6) | noted that a report of progress on this sub- ject was to be aade oy you to the National Security Council by January ., 1954 «tn any recommendations considered aporopriate. After lanca i checked your progress report of January 8, 1954, anc ‘aviewed what was tiere aaid on this subject in ite paragraph ° io view of what you said to me in our little talk at lunch, I assume taat you wil) be preasing further on this matter with SJecretary McKay and Secretary Anderson. It would be interesting to know whether the proposal which Mr. Ryan's conpany hes made, according to him to provide the pipeline capacity through expenditure of private funds, was as valid and feasible as he believes According to him and Mr. White, the proposal was to put two pipe lines in one trench, each having five hundred thousand barre] ly by industry, capacity a day, exe of them to be used currentand the other to de in reserve for governmental use when need should arisa In return for this, the government would be asked to pay fifteen sillion dollars a year for two Years, and ten million dollars a year for three years, after the pipe-line had been built. It would be interesting alao to know whether the opposition mentioned by Mr Ryan to the building of these pipe iines at this tims wae fermidable gource of any celay and the likely au assuming that at some time in the future, you will Let me know when eo repor’ wi > be able t: make o further progress ROBERT OUTLER Special assistant COPY FOR MR. LAY te weber DIF or _ oMectass OF WCT EA Sipe . oe ty E¢MA9 Te Gb. Pia *. ye ’ , " a I te oe f & ‘Cey 9 ¥ / ahe & HORE: fi th. “ che President