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December 03, 1976 - Image 21

Resource type:
The Detroit Jewish News, 1976-12-03

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


Friday, December 3, 1976 21

Two-Pronged War Effort Hurts Arab Economies

(Continued from Page 20)
with the West, particu-
larly Europe, they will
not be successful . . . Un-
less we can find the right
platform for cooperation
our own economies will
suffer and probably the
world economies as a
Klein, whose visit to
Paris coincided with an
important meeting of the
Organization for Eco-
nomic Cooperation and
Development, at which 24
ember nations from
.Urope, North America
and developed Asia were
dealing with prospects for
1977, noted that the U.S.
had to "take a leadership
role" in the struggle to
improve economic pros-
pects by pumping at least
$10 billion back into the
This was undoubtedly a
cue to European - finan-
ciers that the U.S. is not
about to tie up its finan-
cial resources in foreign
military ventures which
help the economies of
arms manufacturers but
drain the total economic



structure of profitable
ventures internationally,
since war materiel is
neither investable capital
nor a long-range investa-
ble market.
To develop a resurgence
of trade on the part of the
U.S. and West Europe in a
-.Tirtually untapped Arab
market and the concomit-
ant need of the Arabs to
find an investment market
is the overriding need.
Saudi Arabia, for
example, plans to spend
$2.7 billion in the next
five years for telecom-
munications alone. Ten-
ders for a huge mic-
rowave system have been
invited from 11 com-
panies, five of them out-
side Europe. Saudi
Arabia, therefore, cannot
afford to tie up its capital
in military budgets for
other Arab states.
In addition, Chase
Manhattan is negotiating
a $250 million loan to the
Egyptian government to
be shared by a number of
Western banks, including
Chase. This is bound to
fall through unless there
is a revamping of Egypt's

Lebanon Border Tensions Seen
Easing; Israel Masses Forces

demonstrative massing
of Israeli forces along the
Lebanese border during
the past week has re-
sulted in a visible easing
of tension in that region,
but while the possibility
of clashes with Syrian or
terrorist units in South-
ern Lebanon has been re-
duced for the present, the
massive presence of Sy-
rian forces in Lebanon
may create, in the long
run, a serious new mili-
tary situation for Israel,
sources in Tel Aviv said.
Israel's strong position
has kept Syrian troops
out of Southern Lebanon
and away from Israel's
border, but tens of
thousands of Syrian
troops, supported by
hundreds of tanks and
other armored vehicles
and artillery are in vir-
tual occupation of the
rest of that country.
Should a new war break
out, the Lebanese front,
dormant in all past wars,
would be engulfed in bat-
tle, posing major defense
and logistic problems for
Israel, assuming it would
have to fight on other
fronts as well.

A new war is not con-
sidered a possibility in
he immediate future.
Meanwhile, officials in
Jerusalem said that they
had no knowledge of any
agreement having been
reached with respect to
Southern Labanon.

They were responding
to reports from Washing-
ton that Syria has agreed
not to send its troops into
Southern Lebanon which
would be handed over to
Lebanese units, possibly
with token reinforce-
ments from other Arab

The officials said they

sources were drawing
conclusions from contacts
in the region and were
prematurely projecting
them into the future, but
they agreed that there was
a good chance of some ar-
rangement materializing
since the situation in
Southern Lebanon has not
changed and neither Sy-
rian nor terrorist units are
known to have entered
that region.

They said contacts
aimed at a settlement
were being continued
through the U.S. Israeli
officials believe the U.S.
supports Israel's position
that Lebanese troops
should be in charge of
Southern Lebanon.

economy that would
guarantee new tax ad-
vantages, the repatria-
tion of capital at the same
rate it is brought in and
the liberalization of other
economic policies. Egypt
cannot do this if it is
geared for war.
A task force of the
American side of the
Egypt-United States
Joint Business Council,
formed last year to pro-
mote U.S. investment in
Egypt, might begin look-
ing elsewhere in the
Mideast for market pos-

provide the political ven-
eer for the Europeans
and Americans to turn off
to Israel. That is why it is
essential for the Arabs to
make Israel appear as a
nation devoted to war and
therefore a non-
profitable market; a
country which can only
force American business
enterprises and govern-
ment to fritter away its
financial resources in
non-productive fields.
So while the Arabs talk
of peace they are also de-
vising new ways to

further isolate Israel
from the international
economic coummunity.
Having fought what now
appears to be a losing bat-
tle on the boycott front,
the Arabs are embarking
on a course of economic
solidarity with the corpo-
rate giants of West
Europe and America. The
Arabs, stockpiled with
armaments in ready
against Israel, can now
afford to talk of peace.
But they are in effect
conducting war by other

GET WITH $1,000,
IS 7-3/4%.


A close reading of the
Israeli position indicates
that Jerusalem would
probably agree to small
numbers of troops from
the Inter-Arab Peace-
Keeping Force in South-
ern Lebanon to help
maintain law and order,
but Israel insists that
Lebanese units must be
the dominant factor there
and that the number of
other Arab soldiers be re-
stricted to a level that
would not endanger Is-
rael's• security.

In a related develop-
ment; the U.S. Charge
d'Affaires George Lane
visited Lebanese Presi-
dent Elias Sarkis "about
problems of mutual
interest." However, it
was understood that the
United States was exert-
ing a maximum effort in
Lebanon, Syria and Is-
rael to prevent what an
official close to Lane
termed "an unexpected
move by any of the par-
ties concerned that could
lead to a crisis in South-
ern Lebanon."

Meanwhile, a number of
East European govern-
ments are seeking to bor-
row hard currency from
the oil-producing states in
the Mideast to buy ad-
vanced technology.
Romania, for example, is
negotiating a large loan
with Kuwait and Yugos-
lavia earlier succeeded in
obtaining credits from
The peace offensive,
therefore, has a dual ob-
jective: to entice trade
and investment and to



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