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American troops in Lebanon in 1958
and the British troop landings in Ku–
wait in 1961 both had the smell of oil
about them.
The American sponsored CENTO
(Central Treaty Organization) has had
as its objective the protection of
U.
S.–
domioated oil producing areas of the
Middle East.
Basically the pact has been a fizzle.
Only Iran joined, of the oil producers.
The pact also bound Turkey and
Pakistan. (Previously it was called the
Baghdad Pact but in 1958 Iraq dropped
out.)
In the light of oil's strategic ímpor–
tance, sorne planners feel United States
support for Israel is the most tension–
producing element in Middle East
poli–
tics. lt makes American oil interests a
tempting target for the Arabs should
major hostilities with Israel resume.
Europeans also have a difficult time bal–
ancing support for Israel and their utter
dependence on Arab oil. For their part,
the Arabs simply do not understand
why the oil companies seem to bave no
influence on
U.
S. foreign policy in the
area. Because, after all, oil is big busi–
ness and it
¡,
basically American.
Oil ls Big Business
Of the major international oil com–
panies - called the Seven Sisters -
five are American owned. The largest is
Standard Oil of New Jersey which
trades through most of the world under
its "tiger in the tank" Esso name. As
one oil expert pointed out, ironically in
tbe U. S., the national trading subsidi–
ary is called
Humble
oil - a most
amusing name in the light of its
strength and size!
The two remaining majors are British
Petroleum and Shell. Shell is Dutch–
British owoed. Its operatiooal and com–
mercial headquarters are in Loodon.
The U. S. Shell Enterprise contributes
one third to the total worldwide Shell
group's revenues and one third of its
proftts. Technically and organizationally
Shell is American oriented.
As a result, the U.S.A.
is
the world's
largest producer, reftner and consumer
of oil. Assets of sorne 5,000 million
pounds are invested in oil abroad, by
U. S. companies, accounting for one
third of total U. S. foreign investments.
The
PLAIN TRUTH
U. S. companies produce 100 percent
of Saudi Arabian oil, 75 percent of Lib–
yan oil, 59 percent of Kuwait's oil,
40
percent of Iran's and 25 percent of
lraq's.
A sagging U. S. balance of payments
is bolstered by more than one billion
dollars in profits remitted annually by
oil companies from operations in the
region.
With the
economic
importance of oil
to the United States and the
Jtrategic
importance of oil to Britain and
Western Europe, the spreading influ–
ence of the Soviet Union in Egypt and
the Middle East, Persian Gulf and
Indian Ocean is traumatic.
In the light of the advances being
made by the Soviet Union today it is
quite possible that the Russian bear
will someday also be able to carry out
its part of the scenario depicted at the
beginning of this artide.
The Soviet Union
is
the dominant
power in the Arab nations that border
the Mediterranean. A new 15-year pact
with Egypt puts the Soviet Union
sguarely in the driver's seat in that cru–
cial nation. Also, the Russian Navy
alre1dy has a string of bases- sorne stili
unconfirmed - throughout the Indian
Ocean area. Controlled from the Indian
Ocean is the access route to the Persian
Gulf. From that area ships carry the
incredible oil output of ten Persian
Gulf states - they include Iran (3.3
mil! ion barreis per day), Saudi Arabia
(2.9 million barreis per day), Kuwait
(2.5 million barreis per day), Iraq (1.5
million barreis per day) .
Whoever controls the Indian Ocean
and sits astride the Strait of Hormuz
"cbokepoint" controls the Persian Gulf.
The Kremlin is out for that control.
Consider also tbat the Soviet Union
has gotten into the Middle East oil
business.
Soviet Union in the
Oil Business
An agreement signed in Moscow,
July 4, 1969 between Iraq and the So–
viet Union obliges the latter to "prepare
and put into operation" the oil fields of
North RumaHa. The ímmediate produc–
tion will be 100,000 barreis of oil daily.
This is to increase to 365,000 barreis
daily.
August 1971
The Nortb Rumaila field is to be
ready for operating by the first quarter
of 1972. "The Soviet-Iraqi agreement,"
according to oil expert George Stocking,
"constitutes the most significant devel·
opment in tbe recent history of the
Middle East oil industry ...
lt marks
Rmsia'J firJt foothold in an important
Middle EaJt oil-producing country"
(Middle Ea.rt Oil,
Vanderbilt Univer–
sity Press, 1970, p. 315).
Interestingly enough on June 25,
1961 Iraqi Prime Minister Abdul
Karim el-Kassem announced that bis
nation had a claim to Kuwait. Could
future Russian backing impel lraq to
make good on such a claim?
Also, Iraq and Iran are still con–
ducting a virulent propaganda war with
each other. Iranians fear that Iraq may
be pushed into a more extremist attitude
by Russia.
Skipping across the Middle East to
the other chokepoiot - Egypt and the
Suez Canal - we find the Russians
have also had a long and sustained
interest in this area. They are also,
as mentioned, well ensconced there
today.
Europe's New lnterest
Europe is waking up to the fact that
tbe Soviets are out for control in the
Middle East. Although its presence is
still limited, Europe will no aoubt be
forced to take the bull by the horns and
make itseif felt economically and in
other ways, if necessary.
One method involves economic assist–
ance. Egypt is planning a large 42-inch
pipeline from Suez to Alexandria
capable of transporting 50 million tons
of oil per year. Tbis will increase to 75
million tons. There will be facilities for
loading and unloading the largest tank–
ers now anticipated.
Mannesmann AG, Europe's biggest
pipe producer has been given Bonn's
blessing to participate in the Egyptian
pipeline project.
Bono officials argue that Western in–
volvement in Egypt's economic develop–
ment is necessary to prevent a repetition
of the Aswan Dam "mistake." The
West's refusal to participate resulted in
the subsequent entrenchment of the So–
viet Union in Egypt.
Germany will join a consortium of