What would you do if you were a producer of oil in Texas and you found that when you put a hundred thousand dollars into a well or a million dollars. your production was cut back so you could operate only eight days a monthmuch higher cost. much longer period of getting your money back. What would you do if you were an Anperican refiner and you found you were paying this artificiallly sustained price? Youd go abroad. Thats just what the American companies did. Result: because we had this artificially sustained price the oil imports begin to increase. Last sentence on this: How do you stop that? The only way you can continue to protect the American market is to bring the foreign oil under the quota system just the way the domestic oil. Thats how the import quota came in. PALMIERI.
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quota system