Basic HTML Version
2
((Middle East Oil
-
BLACK GOLD
for Ettrope,"
in the August
1971
issue.
These artides report existing condi–
tions that portend almost unbelievable
possibilities.
As I write - if I may digress a mo–
ment - I am high over the Swiss Alps,
en route back to Pasadena, California,
from Jerusalem. A group of 78 Ambas–
sador College students from our three
campuses, two days ago concluded eight
weeks of hard work at the archaeological
excavations adjoining the temple mount.
They were removing
3000
years of
debris directly over the areas of the
thrones of ancient Kings David and
Solomon. Last night the Hebrew Uni–
versity held a banquet in my honor at
the new Belgian House building on
campus, with our students present.
... And World Tensions Continue
The situations fraught with high
tension and unprecedented world vio–
lence, are these:
Europe and Japan are dependent on
oil from the Middle East. As Paul
Kroll stated, in the "BLACK GOLD"
article, "Oil makes the world go round.
And since oil makes the world go round,
a few not-so-powerful nations could
literally stop tbe world." Also, I will
add, a certain giant power - the
U.S.S.R. - could do this, and stands
poised and ready.
A significant fact is tbat only three
or four percent of America's oil re–
quirements come from that area. An
attitude in America of disinterest in
the Middle East could trigger nuclear
war! Europe and Japan cannot take this
situation lightly. As Paul Kroll stated:
"To Europe and Japan, tbe thought
of a Middle East oil stoppage brings
a tbousand and one Arabiao night–
mares."
Japan imports
90%
of its oil from
the Middle East.
Britain relies on the Middle East and
North Africa for
70%
of its oil needs.
West Gerrnany close to
90%;
Italy
almost
95%.
Now realize the impact of these
facts: Western Europe's prospects for
industrial growth are
directly linked
to a continuing aod unimpeded access
to Middle East oil !
Europeans are at tbe merey of the
The
PLAIN TRUTH
oil ilow from the Middle East. Coal's
share of the energy rnarket has fallen
from 56 to 27 percent in ten years.
Oil's share has doubled - from 32 to
60 percent. Yet oil
conmmption
is
three times that of ten years ago.
Now consider the situation discussed
by Gene H. Hogberg in his article on
Europe's Common Market - "Rising
World Colossus."
Momentous, historie events are trans–
forming Westero Europe.
With the U.S.S.R. moving warships
into the Mediterranean - with the Rus–
sians supplying Egypt with arms, and
sending officers to train the Egyptian
arrny and air force - with Russia hav–
ing concluded just recently a treaty with
India - with Russia looking on,
poised, and hungry to gobble up the
Middle East - Europe has had to rely
on UNITED STATES POWER to hold the
Cornmunists at bay.
The European Concern
But did you read, in the "Cornmon
Market" article, what is now happening?
European powers are beginning to won–
der whetber they are safe relying on
American power to protect
their
Middle
East vital interests, especially since that
is not an Amer.ican vital interest. But
there is more.
Recently the United States dollar has
been in trouble. European governmeots
were shocked by the revelation that the
U. S. suffered a balance-of-payments
loss of
$10,700,000,000
in
1970.
More
dollats ilowed out of the United States
than flowed in. This, in spite of exports
exceeding irnports. But in the last few
months even that factor has been re–
versed! Overseas investments, bank
transactions, tourist expenditures, for–
eign aid and overseas military spending
caused a rnassive dollar
drain.
The U. S. now has only about
$10,000,000,000
in gold to offset total
foreign dairns of well over
$50,000,-
000,000.
This is merely one of many
dire U. S. economic problerns of grave
concern to the
Ettropean Common
Market!
The
1970
overseas fiscal hemorrhage
resulted in a
$10,700,000,000
bulge in
the dollar holdings of foreign central
banks. Seven months ago this dollar
"glut" in Western Europe was rapidly
Oetober 1971
approaching untenable and unman–
ageable proportions. More dollars are
simply not wanted abroad.
America is the world's leading
banker nation. And the investors and
depositors are seriously wonderiog how
long tbe bank will remain solvent!
On last February 9, this year-
1971
- the "Six" nations of the Comrnon
Market decided to take the plunge and
strive against all odds for monetary
union. On that date they agreed on a
three-stage plan to achieve total econom–
ic unity.
And
WHY?
Because of the sobering
events taking place in the United States
- in its
desperate
dollar situation. Few
Arnericans have realized the impact of
this dollar coodition upon Westero
Europe. NEVER BEFORE has the United
States been wallowing in sud1 an ocean
of red ink!
Naturally I was unable to finish typ–
ing this
Personal
in flight, for we soon
landed in England for a stopover at our
English campus, wbere I am now coo–
tinuing the writing.
And Now - Nixon's New
Economic Plan
And on August
15,
a two-column
top-of-front-page headline in the
Sun–
day Telegraph
( London), said: "NtXON
SPENDS WEEKEND IN FIGHT TO SAVE
DOLLAR." New battle lines in the fight
for the dollar were being drawn up
over the weekend by the President and
his four senior economic advisers in
a secluded place near Washington.
The situat(on was becoming despee–
ate. Time was running out. And now,
as we go to press, the President's emer–
gency plan is making gains.
Now consider what could well
happen!
European nations could decide that it
is a matter of life-and-death for thern to
speed up,
in
a crash prograrn, their plan
for a cornmon currency.
Feeling Arnerica is weakening as the
giant world econornic power, they could
lose all confidence in United States
power to protect thern from Russia rnak–
ing advaoces into the Middle East and
the Mediterranean. This could drive
them, in frightened self-defense, to a
crash program of political and military
(Contintted on inside back cover)