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Bechtel Agreement Significant in Boycott Battle

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(Continued from Page 1) score the urgent demand
which will promote corn- for anti-boycott legisla-
petition among them for tion the three leaders
"lawful trade in the stated: "Without a strong
Mideast. An enormous ,federal law the Arab
number of United States states will remain free to
jobs are at stake and the intimidate and manipu-
importance of Mideast late American industry in
work to the United their . economic war
States' balance of pay- against Israel. Without a
ments is very great." strong federal law, Arab
In Washington, new regimes will continue to
legislation that would violate American princi-
make it illegal for Ameri- pies of free trade and free
can companies to partici- enterprise."-
Such legislation is
ate in any manner in the
Tab boycott of Israel needed, the three leaders
as introduced in the Se- continued, to shield U.S.
nate by Sens. Harrison firms "from Arab
Williams Jr. (D-NJ) and blackmail that distorts
William Proxmire (D= their business judge-
Wisc). The bill, to be ments and twists their
known as the Export Ad- business decisions."
ministration..and Foreign
Observing.that an initia-
Boycott Amendment Act tive on anti-boycott legis-
of 1977, is designed to lation is underway in the
toughen the anti-boycott House and Senate, Epstein
provisions of the Export warned that efforts are
Administration Act and being made to stop such
remove the confusion legislation. Mrs. Levine
that now surrounds their said that the monitoring of
implementation. American firms in their
The Export Administra- ' response to Arab boycott
tion Act expired last year demands will continue in
when a filibuster, believed the months ahead.
initiated by the Ford Ad-
The study issued today
ministration, prevented showed that in only four
adoption of the necessary percent of the 836 cases
extension legislatioh. Wil- was there refusal to agree
liams said, "As a result, to Arab demands. In the-
the U.S. is now without the remaining nine percent,
requisite authority to deal the study disclosed, the
with the complex issues of companies
reported
national and international either that the decision
consequences arising on compliance was being
under the jurisdiction' of made by 1"another party"
the act."
or that no decision had
The Williams-Proxmire yet been made.
bill will have the full sup-
The most common
port of the incoming Car- boycott request was -for
ter Administration, Mrs. certification that goods
Juanita Kreps, Secretary were not made, in whole
of Commerce-designate, or in part, in Israel.
indicated at her. confir-
The New York State
mation hearings Monday. Division of Human
Appearing before the Rights announced that it
Senate Commerce- Corn- has found "probable
mittee she was asked by cause" in the complaint
Sen. Daniel P. Moynihan filed by the AJCongress
(D-NY) whether the charging the Morgan
- anti-boyc-ott legislation Guaranty Trust Co. and
that died last year should Citibank with "unlawful
be re-introduced and if discrimination" in viola-
President-elect Carter tion of New York state's
would support it. She re- anti-boycott law.
plied that there was no
The AJCongress hailed
question that the new the finding and said it
Administration "was on looked forward to a final
record in support of such determination ordering
legislation. "This would the two banks to "stop
be not only acceptable but handling discriminatory
desirable," Mrs. Kreps letters of credit."
said.
The- AJCongress has
Last week, Benjamin R. charged that the two
Epstein b national director banks are- "pivotal" in
Of ADL, Bertram H. Gold, implementing the Arab
executive vice president of boycott because of their
the American Jewish "dominant positions" in
Committee and Naomi international trade bet-
Levine, executive director ween New York exporters
of the American Jewish and Arab importers.
Congress, released an
The AJCongress brief,
analysis -of 836 reports drafted by Lois Waldman,
sled .with the U.S. De- assistant director of the
partment of Commerce organization's commis-
during the four weeks be- sion on law and social ac-
ginning Oct. 7.
tion, said the two banks
The analysis disclosed were making the boycott
compliance by American effective by enforcing
firms with Arab boycott provisions in letters of
-demands in at least 87 credit that bar payment
percent of the cases. The for goods shipped to Arab
study was prepared by customers unless the
the ADL in behalf of the American supplier cer-
three groups and was tifies it does no business
based on information with Jewish companies or
supplied to the Depart- companies controlled by
ment of Commerce follow- Jews.
ing President Ford's
On the West Coast, an
order that boycott related opinion by ,California's
reports. by U.S. com- attorney general on the
panies with the Depart- state's new anti-boycott
ment be made public.
law has 'been challenged
Noting that the' find- by the AJCongress as
ings of the study under- serving , to "extend, con-

Friday, January 14, 1977 17

WOMEN

'S Our ONVn Designer Collection
done and _validate acts of itself an act of compliance
with
the
boycott...which
"by Alex"
collaboration with the
contravenes the policy of
Arab boycott of Israel."
Roslina
Schiavone
FERAGGAMO
• JOYCE
Last month, Attorney the United States."
OLD
MAINE
TROTTERS
•
CLARKS
OF ENGLAND
Smith
said,
"It
has
been
General Evelle J. Younger
issued an opinion that the policy of the United
CALIFORNIA COBBLERS
Chapter 1247 of the States for 11 years to en-
VALUES TO $55
California Statutes, which courage and request
became effective Jan. 1, American firms to refuse
did not prohibit California to take any action, includ-
banks from issuing state- ing the furnishing of sim-
ments that goods sold to ple certificates of origin"
Arab buyers do not contain that has "the effect of
furnishing or supporting
material of Israeli origin.
MEN'S FAMOUS BRANDS
The mere demand by the Arab boycott of Is-
banks for negative cer- rael."
NOW
JOHNSTON MURPHY
The
AJCongress
tificates of origin as a
spokesman also cited a
prerequisite to payment
FREEMAN
statement by the board of
on certain letters of credit
WM.
JOYCE
inevitably aids and abets, governors of the Federal
PIERRE CARDIN
the Arab boycott and em- Reserve System that "the
to
broils American financial participation of a U.S.
VERDE
institutions in active col- bank, even passively," in
VOLARE
laboration with boycott efforts to effect the
off
HUSH PUPPIES
activities," Phil Baum, boycott was "a misuse of
values
to
$85
the
privileges
and
be-
associate executive direc-
tor of the AJCongress nefits conferred upon
banking institutions."
wrote to Younger.
The issuance of letters
The California official's
of credit containing
- interpretation of the
boycott clauses, the Fed-
anti-boycott law, -Baum
eral Reserve said in a let-
said, would "defeat the
legislative intention" of ter to member banks on
Dec. 12, 1975, "was
EVERGREEN PLAZA
the statute.
Prior to the Attorney- beyond normal commer-
12 Mile & Evergreen
559-8833
cial conditions" and was
General's opinion, the
Not all sizes in all styles . . . all sales final
"unjustifiable."
Bank of California in-
structed its branches in
the state and in 44 coun-
tries abroad to stop hand-
ling documents contain-
ing boycott-related provi-
sions. Similar announce-
ments were made by
other California banks.
Since Younger's opin-
ion, however, Baum said,
"the banks have indicated
a measure of uncertainty
on how to proceed."
Baum cited an opinion
rafteewtee
by J. T. Smith, general
counsel of the U.S. De-
partment of Commerce
26706 Greenfield in the Lincoln Center, Oak Park phone 968-8855
last Nov. 5 that the mere
furnishing of boycott-
A Division of Standard Detroit Paint Co.
related information "is in
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