molecules, like ethylene, have been converted into paraffins and aromatics over faujasite-type zeolites (Venuto et al., 1966).Reactions c and d involve carbonium ions and require the presence of acid sites. There is spectroscopic evidence for the interaction of zeolitic acidic OH groups with xelectron systems of adsorbed olefins and aromatics (Venuto and Landis, 1968). Such an interaction is likely to facilitate the subsequent conversion of these molecules, leading to paraffins and condensed, hydrogen-deficient aromatics (coke). This explains why over strongly acidic zeolites, such as RE,H-Y, the rate of these hydrogen-transfer reactions is high. The presence of metals also facilitates these reactions.We have shown that USY zeolites have a lower overall acidity than RE,H-Y zeolites. The lower density of acid sites in USY zeolites reduces the rate of conversion of olefins into paraffins and of aromatics into condensed polycycles, thus allowing the olefins and aromatics to diffuse out of the zeolite and to desorb. The higher content in aromatic and allylic hydrocarbons in the gasoline fraction obtained from gas oil cracking over ultrastable zeolites, as well as the lower coke yield and higher olefin selectivity, is in agreement with this interpretation.Exchange of rare earth into the zeolite will increase the rate of these hydrogen-transfer reactions, resulting in more coke and higher conversions. This effect will be more pronounced as the rare earth content of the ultrastable zeolite increases.The data presented show that the rare earth-exchanged USY zeolites combine the catalytic properties of USY zeolites with those of RE,H-Y. By varying the rare earth input into the zeolite, a series of yield-oriented catalysts can be prepared, each tailored to meet the demand of a particular segment of the refining industry.