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December 02, 1966 - Image 10

Resource type:
The Detroit Jewish News, 1966-12-02

Disclaimer: Computer generated plain text may have errors. Read more about this.

ADL Requests Rusk Act to End
Arab Boycott of American Firms

NEW YORK — The Anti-Defama- sponsibility" of the U. S. govern-
tion League of Bnai Brith on Thurs- ment to defend the economic sys-
day revealed that it has asked the tem under which we operate and
United States government to take to protect the right of American
"prompt and forceful action" in businessmen to engage in free
support of American firms "faced trade within the limits of estab-
with blacklisting because they lished policy." In asking these busi-
have complied strictly with our nessmen to ignore demands or re-
country's established foreign trade i strict•ons imposed by such groups
policy." as the Arab League Boycott Com-
An "urgent request" for govern- mittee, he continued, "our govern-
ment intervention in the bans ment implicitly commits itself to
against the Ford Motor and Coca- support those companies which
Cola Companies and Radio Cor- agree to the request."
Naming Ford, RCA and Coca-
poration of America imposed by
the Arab League Boycott Confer- Cola as companies being "penal-
ence was sent Monday to Secretary ized" for doing so, Schary said
of State Dean Rusk by Dore that "American businesses which
Schary, ADL's national chairman. are willing to adhere openly to
The bans, announced Nov. 20 U. S. trade policies should not be
and 26 in Kuwait, were unani• forced to do battle alone when
mously adopted by the confer- those policies are challenged by
ence because Ford and Coca- outsiders."
He concluded the letter by urg-
Cola had expressed intentions
of entering business relation- ing Rusk to "take immediate steps
ships with Israel and because I to insure that they have the full
and enthusiastic support of your
RCA is there already.
S c h a r y noted that the 1965 department and the other govern-
Amendment to the Export Control mental agencies involved."
In making the letter public,
Act (the Williams - Javits Act)
makes it U. S. policy to oppose in- ScharY said that Arab nations are
equitable trade restrictions: in- the recipients of billions of dollars
eluding boycotts, fostered or im- in American aid. He pointed out
posed by foreign countries against that this aid comes from industry
other countries friendly to the which pays billions of dollars in
United States. Accordingly, the federal taxes out of earnings de-
U. S Department of Commerce rived from domestic and interna-
specifically asks all American ex- tonal trade.
"To continue U. S. aid to Arab
porters to refuse to comply with
restrictive trade practices and boy- states while American industry,
because of its obedience to
cotts. Schary said.
American law, is suffering their
The ADL chairman pointed out
that there is "constant harass- : boycott punishment, appears to
ment" by the Arab League of be self defeating, Schary de-

American companies. "The trag-
He said the United States should
edy." he told Rusk. "is that the
mmediate representation to
harassment is greatest against Arab League countries that "this
those companies which have evi- nation, upon which they call for
denced a willingness to stand up financial aid, will not stand for
and be counted in support of U. S. vindictive badgering or punitive
boycotting of its industrial repre-
Schary said that Ford, RCA sentatives, large or small."
and Co c a-Cola "have been
Commenting on the Anti-Defama-
singled out for Arab punishment
} tion League's request to the Secre-
as a warning to others who may tary of State, Arnold Forster, the
also be ready to defy boycott de- agency's general counsel, said he
mands." Chrysler and General b e l i e v e d threatened American
Motors have moved with Ford
companies can be rescued through
in parallel directions toward official American action since
Israel, and yet have not been
there have been "successful efforts
similarly ordered banned by the made by some companies which
Arab Boycott Committee."
were in a position to help them-
Schary told the Secretary of State : selves." He named the Chase Man-
that Simon E. Knudsen, executive ,
hattan Bank, a major financial
vice president of General Motors, agent for Israel bonds in this coun-
in a letter to the Anti-Defamation try, as an example of an American
League dated Nov. 3, had stated enterprise which had been "threat-
that his company is "exploring an ened and warned, with much ac-
arrangement" whereby GM would i companying publicity," and then
"simply the know-how" to an Is- left alone.
raeli GM distributor for the as- ,
"F aced with a show of
sembly of its cars and trucks in ' strength," For s t e r said, "the
Tel Aviv.
Arab Boycott Committtee backed
Declaring that the punitive Arab away without imposing boycott."
Boycott Committee resolutions ; He said Chase was able to ignore
against Ford. RCA and Coca-Cola ; boycott warnings successfully be-
are not binding in their present j cause its services are essential to
stage since the committee "is an Arab countries. Although the bank
advisory rather than an official continued its Israeli operations, its
government body," he asked the Arab government dealings were not
State Department to "head off" im- terminated.
plementation before it is too late.
Forster declared, however, that
The resolutions, to be mean- "despite the successful resistance
ingful, he asserted, "must be of Chase and other firms — such as
implemented by the committee's Westinghouse, IBM, Monsanto, In-
member nations — Algeria, Iraq,
ternational Paper, Republic Steel,
Jordan, Kuwait, Lebanon, Libya, General Tire, National Cash Regis-
Morocco, Saudi Arabia, Sudan, ter, the Hilton and Sheraton Hotel
Syria, the United Arab Republic chains, TWA and other American
and Yemen. Firm, official United airlines — American industry, ad-
States action can still prevent hering to American policy, is often
American properties from being under great disadvantage."
nationalized or shut down."
He called the Arab boycott "more
Schary called it "a major re- of a political propaganda device"
than an economic measure against
Israel, "whose economic growth
10—Friday, December 2, 1966
has not been hindered." The boy-
cott's aim. Forster said, is to
build "an all-powerful image of
Arab countries which is completely
out of proportion to fact."
He pointed out that the Arab boy-
cott, as applied to United States in-
dustry, "creates an image of the
submissive American businessman

in the Middle and Far East mar-
kets." He said such firms as Kai-
ser-Frazer, Sears Roebuck, Zenith
Radio, Mica Seltzer, Bulova Watch
Co., Eli Lilly and Helena Ruben-
stein have been listed by the Arab
League as being banned by most
Arab countries. This political prop-
aganda game, in short, is hurtful
to American business interests.
Forster also pointed out, how-
ever, that the boycott operation
often resorts to "devious means to
create the appearance of ever-in-
creasing effectiveness." He said
threats are often made "for the
benefit of the resulting publicity
and propaganda," or firms are an-
nounced to have been taken off a
boycott list when they had never
been on it.

LONDON (JTA)—An official of WASHINGTON (JTA)—The
the Ford Motor Co. operations in Egyptian Embassy here denied re-
Egypt said the Egyptian govern- ports that the Egyptian govern-

ment agreed to end its seizure of ment had seized a Ford assembly
bank accounts and property of the plant in Alexandria. State Depart-
Ford subsidiary over a customs tax ment sources also said that ti
dispute, it was reported here Ford plant had not been seize
Wednesday from Cairo.
Mohammed Habib, E m b a s
Hans Stock, manager of the sub- press counselor, said his govern-
sidiary, said that Egyptian officials ment did not seize the plant and
promised to release the funds and that "there has not been any sei-
equipment when he gave them a zure of property, private or cor-
$1,000,000 letter of guarantee to pay porate in Egypt." He added that
disputed custom duties. The Egypt- he thought the reports were "an
ian government said the required attempt to confuse the issue and
duties have accrued from opera- to cover Zionist embarrassment
tions of the Ford subsidiary. Stock after the United Nations Security
said he would provide the letter Council censure of Israel on Nov.



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