(ESTIMATED PUB DATE) FURTHER CUTS IN SOVIET OIL EXPORTS TO ALLIES

Created: 1/1/1983

OCR scan of the original document, errors are possible

lo the impact of ihe L'S embargo on Ml and gas goods and technology.

Oilopm<Sakhalin Oil Development CorporationiSODECOl ise*

strategy- in proceeding wiih the offshore oil projecis being developed jointlyfields, Chaivo and Odoptu, are uffecicd.officials believe lhat the Chaivoexisting Japanese and Wcsi European technology, butand development of ihe geologically complex Odoptu fieldJ^g

The Japanese proposal would allow SODECO to proceed with development of the Chaivo field (which contains over half of the area's combined oil and gas condensate reserves and nearly iwc-thirds of its natural gas reserves! while still complying with the USold on development of the Odoptu field is probably acceptable to SODECO because of the eipeeled siow growth tn Japanese demand for natural

'ih

GromykoForeign Minister Gromyko. during bis meeting al the IN with Japanese

JapaneseMinister Sakurauchictober, reaffirmed Moscow's refusal to

Tokyo's claim to the disputed Northern Territories Gromyko, according

to Japanese officials, abo revived the ideareaty of "good-neighborubstituteeace treaty otion that the Soviets originally proposedhen the two sides could not settle their territorial dispute He appeared cool to the idea of hi* visiting Tokyo in the neartelling Sakurauchi he did not feel the atmosphere in Japan was favorable now, particularly when the Japanese keep bringing up the territorial dispute.|

The Japanese repoiieilly consider hisetback from Ihe position of the two stdes after Gromyko's previous meeting with Sakurauchi in June. when Gromyko said he wouldisit to Japan and would discus* the matter with other Kremlin leaders. The two sides have made no progress since then, however, in repairing the damage caused by tbe Soviet move into Afghanistan inn espionage scandal in Tokyooviet Embassy caTicernd the Japanese decision1 toebruary as aa annual Northern Territories Day The Soviets almost certainly hate been further angered by statements that Prime Minister Suzuki made about the USSR during his recent visit to China, as well as by the recently announced decision to allow the United States topanH

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