Meeting With Prime Minister Trudeau of Canada Joint Communiqué.

ENERGY

During their discussion today over lunch at the White House, the Prime Minister and the President discussed the world energy situation and noted that increased energy self-reliance is a major objective of both their governments. They reaffirmed that enhanced bilateral cooperation in the field of energy will serve the interests of both countries. They also agreed that maximizing the supplies of domestic energy available to each country was a common and shared objective.

Recent international events have served to underline the vulnerability of the USA and Canada and other oil-consuming countries to oil supply and pricing disruptions. The President and the Prime Minister endorsed the coordinated undertaking of March 2 by the member countries of the International Energy Agency to reduce demand for oil on the world market on an urgent basis in response to the current global supply situation. The Prime Minister noted that Canada is raising its oil production and that production in the first quarter of 1979 will be some 13 percent above the previous year, a portion of it being used to offset domestic shortfalls resulting from the Iranian situation. The United States plans to take appropriate action to increase its oil production to offset the world supply shortfall.

The Prime Minister outlined to the President the progress already achieved in Canada toward construction of the Northern Gas Pipeline. The President affirmed his government's strong commitment to the completion of the line, which will bring Alaskan gas to the lower 48 states and eventually Mackenzie Delta gas to Canadian markets. He noted that he is sending a reorganization plan to the Congress no later than April 1, establishing the Office of the Federal Pipeline Inspector. He also stated his determination to ensure that the U.S. regulatory process on all aspects of the Northern Gas Pipeline proceeds as quickly as possible.

The two leaders agreed to seek ways whereby any additional Canadian gas exports, should they be authorized, could facilitate timely construction of the entire Northern Gas Pipeline.

In order to enhance the already close and timely cooperation in other bilateral energy areas, the two leaders agreed to establish a consultative mechanism at the sub-cabinet level which would function at least to the end of 1979. This consultative mechanism is charged with:

—ensuring that decision-making processes in each country on the matter of a delivery system to transport Alaskan crude oil to the northern tier and other inland states proceed in a parallel and timely manner;

—developing options for decision by each government on a number of operational issues in bilateral energy relations, including oil supplies and oil exchanges, strategic petroleum storage, the utilization of surplus Canadian refinery capacity, electricity exchanges, possibilities for liquefied and synthetic natural gas exports to the U.S., and other energy-related tasks as may be appropriate.

The President and the Prime Minister will designate promptly senior officials from their respective governments to serve on this consultative mechanism.

MTN

The Prime Minister and the President expressed satisfaction over progress achieved between them in the Multilateral Trade Negotiations. They agreed that timely completion of a balanced MTN agreement involving all the participants would make a notable contribution to reducing inflation and improving the prospects for sustained and balanced growth in the world economy.

SALT

The President and the Prime Minister discussed prospects for the conclusion of a SALT II treaty with the Soviet Union and agreed that such a treaty would be a significant step forward in the important task of restraining the nuclear arms race and of developing a more stable basis for maintaining world peace and security. The President acknowledged the Prime Minister's contribution to the nuclear arms control debate and expressed his appreciation for Canada's support for the U.S. pursuit of SALT II negotiations.