ABSTRACT
Iran illustrates the dilemma the US Government faced in implementing its policy of encouraging US nationals to find reserves overseas. The logic of foreign policy however conflicted with the dogma of American free enterprise. The exigencies of foreign policy, on the other hand, demanded that government should deal chiefly with those enterprises experienced in foreign operations that are with the large international oil companies. The internationals have traditionally pursued a policy of keeping the price of crude high relative to that of refined products. The increased penetration of Canadian oil into the US was consistent with the US policy of directing Western Hemisphere oil to US markets. In order to protect the residents of Eastern Canada against the high-priced foreign oil, the federal government has been paying a subsidy of several billion Canadian dollars a year to the international oil companies, who import practically all of Canada's oil.
