ABSTRACT
The world economy suffered a severe shock following the rapid escalation of oil prices in the wake of the 1973 Arab oil embargo. Some of the industrial nations—particularly the United States, Japan, and West Germany, the so-called engines of the world economy—were able to withstand these shocks and, after temporary recessions, resume economic growth at near historic rates while containing inflation at moderate levels. European and Japanese nuclear programs are proceeding, albeit more slowly than previously forecast, and some countries have begun serious efforts to implement energy conservation programs. The Shimoda conference also may want to deal with some of the issues surrounding US coal exports to Japan. On the narrower question of a Japanese-US energy strategy, it is important that the discussion begin with a recognition of the key roles that both countries play as major oil importers.
