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British, Saudis Clash On Control of Remote Oasis Near Oil Fields By EARL H. VOSS As If the free world hasn’t enough worries In the oil-rich Middle East, what with the bitter Arab-Israel dispute and the recent Soviet penetration of the area, another long-smouldering crisis is now rising to white heat on the desert sands of Arabia. This one involves Great j Britain and Saudi Arabia. • At issue is control of a small but strategically located oasis called | Buraimi, from which the fringes of the arid Arabian peninsula's vast oil reservoir are being explored. An international arbitration tri bunal met last September to de cide who was the true sovereign In the nine villages of the oasis. But on September 16 the British suddenly withdrew. They charged the Saudis with bribing some of the principals concerned, including one member of the neutral court. In October, British-led Arab troops took forcible possession of the Buraimi oasis area. They claimed to have found new evidence of bribery of local chieftains. The Foreign Office in London re fers to the military adventure as "re-establishing control," but the Saudis are screaming “military coup” and “aggression.” The Arab League is lining up be hind the Saudis. King Saud has complained to the United Nations Security Council about British Lan caster bombers violating Saudi air to buzz Arabian-American Oil Com pany (Aramco) parties. The Imam (religious leader) of Oman has Just accused Great Britain of invading his territory. How did all this come to pass in this land of nomad shepherds, Ara bian warriors and, more recently, oil-seeking Caucasians? Shifting Sands Britain’s interest in the eastern end of the Arabian peninsula dates back to the late 18th cen tury, when her ships engaged in trade with India were being harassed by pirates based on the Persian Gulf and the Arabian Sea. To put a stop to this, the British arranged a truce with the seven Oman (East Arabian) sheikdoms on the Persian Gulf. The sheiks agreed to end their pirate raids and to turn over their foreign affairs to Her Majesty’s (Queen Victoria’s) gov ernment. In return the sheikdoms became British protectorates, as was the imperialist fashion of the day Britain also made a less formal deal with the Sultan of Muscat, around the corner from the Trucial states. The Sultan’s foreign affairs are conducted by the British only on his request. Oil Changes Picture Britain claims always to have had an Interest in Buraimi and other interior areas said to have been historically under their friends’ Jurisdiction. But until oil was dis covered oa the Arabian peninsula in 1982, exact delimitation of desert borders had not become a burning issue. Under the stimulus of the 1932 oil strike and King Xbn Saud's 1933 decision to give American instead of British oil companies the con cession to prospect in his terri tories, Great Britain made an effort in 1935 to reach an agreement with the Saudi king on the legal limits of his domains. Both sides made claims, as shown in the two 1935 lines in the accompanyihg maps. But the negotiations were unsuc cessful. Ip 1937 the British made slight concessions, but the Saudis were unimpressed. Finally, in 1939, the whole problem was shelved for the duration of World War n. 1949 Line By 1949 things had quieted down enough for King Ibn Saud to ad vance a new claim, this one much farther eastward than his 1935 offer (see map), and terminating at Buraimi. The British countered this with charges of expansionism, and claims that the “legal” boundary of Saudi Arabia lies well to the west, fixed back in 1914 by an Anglo-Turkish treaty, when King Ibn Saud was a sub-ruler under the Turks. There i» no doubt, of course, that the Saudis’ 1949 claims to Buraimi and other territories in southwest ern Arabia are seriously weakened by their 1935 offer to settle for much less territory. \ Britain retaliated in 1952 by re vising its line Inward from the north, expanding the trucial sheik dom of Abu Dhabi in defiance, nat urally. of the new Saudi claims. Also in 1952, Saudi agents arrived in Buraimi to compete for the loyal ty of the local village sheiks. The “Trucial Oman Levies” (conscript Arab soldiers under British officers) tried to blockade the Saudis, but they continued to thrive and dis 1952 OPPOSING CLAIMS hav« roomed map of Arabian peninsula since 1913. pensed patronage, or bribes, depend- ‘ ing on the point of view. British Reject Plebiscite At about the same time, the Saudi i Arabians proposed to the British that an internationally supervised plebiscite be arranged to decide sov- 1 ereignty in the Buraimi region. But ; the British backed away; they said it would not be "appropriate.” j The British still make much of the 1 fact—which the Saudis do not dis pute—that the Saudi official in Buraimi traveled through territory belonging to the ruler of Abu Dhabi to set up shop. This signified, to the British, that Buraimi, far from be ing an old outpost of the Saudis, was actually inaccessible to them. Saudis make no such admission. They concede that the way through Abu Dhabi is less arduous, but i claim that overland access is a reality. There are no four-lane highways, of course, by either the Abu Dhabi route or through the interior. The Saudis also poke fun at the Abu Dhabi sheik for allowing Turki ; to travel unmolested through his ( territory. They take the incident I as an indication of the weakness j of Abu Dhabi control, even in areas which the Saudis do not dispute. Arbitration Although the British were deeply concerned about what they re ferred to as Saudi bribery activities in Buraimi. the Foreign Office pro- I posed arbitration in 1952, to counter the Arabs' call for a plebiscite. The British kept repeating their : proposal, and rejecting Baudi pleas ; for a plebiscite, until the Saudis 1 finally consented to arbitration in j 1954. The two sides agreed on a five-man tribunal, three neutrals from Belgium, Cuba and Pakistan, and one member from each side. All were distinguished men of international reputation. The chair man was the eminent Belgian ! jurist, Dr. Charles De Visscher. The j Cuban was Judge Ernesto Dihigo, ; ex-Foreign Minister of Cuba and professor of Roman Law at the Uni versity of Havana. The Pakistani I judge was Dr. Mahmud Hassan, I vice chancellor of Dacca University, j- Sir Reader Bullard, longtime British diplomatic official in the Middle East, represented Great Britain on the tribunal. The Saudi Arabians sent their deputy foreign minister. Yusuf Yasin. At the tribunal's organization meeting in Nice last January, the Saudis warned the tribunal that they were apprehensive about the arbitration’* effect on conditions in Buraimi. They suggested that a neutral supervisory committee,, be set up, under the court, to reside ; in Buraimi during the arbitration period. Sir Reader Bullard opposed the ! idea. The tribunal decided to put ! off the issue, to wait and see if the ■ feared unrest developed. Bribery Charge The tribunal was to get down to business last September when it met in Geneva. Both sides had by that time prepared printed “memorials" presenting their cases to the Judges. But the British were still worried about foul play at the oasis. Before the court ever took up the substantive problem of sovereignty in Buraimi. the British accused the Saudi Arabians of gross misconduct. The bookkeeper for the Saudis in Buraimi. it was alleged, had tried to bribe the brother of the Sheik of Abu Dhabi, offering him 400 million rupees in one payment of gold 'approximately SBO million, or in Arab reckoning, 1,000 camel loads). The British added that the Saudis had also violated the pre arbitration “temporary standstill” agreement by augmenting the 15- man police force they had been allowed. The British put the full weight of their prestige behind the bribery charge. Saudis laughed it all off as fantastic. Who—they wanted to know—would seriously expect a lowly bookkeeper to negotiate such a tremendous deal? And how could anyone take seriously a one shot delivery of that much gold? Even King Saud would have a hard time rounding up that many camels, they quipped. Great Britain produced the man who claimed he had received the bribery offer. He was put on the witness stand and produced a (Continued on Page A-27) EDITORIALS—FEATURES REVjEW OF TljE WEEK Labor s Big 2 End 20-Year Split Big business and big labor met in New York City last week —but not with each other. The National Association of Manufacturers held its 60th annual convention at the Waldorf-Astoria Hotel. The American Federation of Labor-Congress of Industrial Organizations held its first annual meeting at a National Guard armory. The two meeting places were about a mile apart, geograph- ically, and a million miles apart philosophically. The conventioneers didn’t have much chance to rub elbows but each group was think ing of the other. The NAM was worried that the new union federa tion would have too much economic and political power, and Hhe AFL CIO was hopeful that it could nego tiate a non-aggression pact with the NAM from labor’s new position of strength. A labor spokesman went to the Waldorf to trade criticisms with a business spokesman—and they part ed unconvinced. When the week ended the groups remained the same distance apart. LABOR AFL and CIO Merge; Politicians Court and Condemn Leaders When George Meany and Walter P. Reuther jointly grasped a huge gavel and banged it down last week, the first convention of the Ameri can Federation of Labor-Congress of Industrial Organizations was called to order, welding 15 million workers into the largest labor or ganization of the free world. As the delegates to the New York convention sat back to listen to an address by the President of the United States, many an ob server thought to himself. “Or ganized labor has come a long way.” Just how far could be under stood by looking at the early years of American unionism. Until an 1837 court decision, most organized labor activities were Il legal. But with the decision that routine union activities were law ful, the unions started to grow— FOREIGN REVIEW U. S. Maps New Strategy For 'Second Cold War' Effects of President Elsenhower’s return to fundamental decision making, after the heart-attack layoff, could be observed in several key developments last week. In Chicago Thursday evening, Secretary of State John Foster Dulles laid down the new general line along which the administration proposes to counter the Soviet Union's “second cold war” offensive. Briefly, he said the United States Intends to keep its military guard up, and match or best the Soviet Union in its new verbo-economic offensive among underdeveloped countries. First steps toward carrying .out these policies were already being made. The military budget. Sec retary of Defense Charles E. Wilson said last week, would remain at the same level as last year—s34.s bil lion—or, some reports indicated, spending might go up SSOO million. But within this huge appropria tion, emphasis was switching and the pressure on the Soviet Union was mounting apace. The Defense Department let it be known Fri day that all three services would be concentrating much more heav ily—and spending perhaps twice as much money—on the whole spec trum of guided missiles, particu larly the long-range and medium range ballistic missiles which could reach the Soviet Union from a variety of launching sites. The Air Force is concentrating on the long-range “IBM” inter continental ballistic missile, which could be launched from the conti nental United States. The Army and Navy are to pool their resources and work on a medium-range mis sile, which could travel 600 to 800 miles, and be launched either from bases now surrounding the Soviet land mass, or from the mobile launching sites of the United States Navy. The National Security Council was also reported to have taken a significant decision on foreign aid —to ask Congress for some S2OO million to help Egypt build her ambitious Aswan dam across the Nile River. The World Bank, also heavily endowed by the United States, is now said to be ready to lend Egypt S2OO million. This is a project tailor-made for the com bined economic-political objectives of American foreign policy. Economically, the dam will trans form the Egyptian economy, en riching its agriculture by some thing like a third and providing enough electricity to urbanize vast tracts of pastoral Egypt. Politically, the project is spec tacular enough to dramatize the American part in making it possible. And the fact that the Soviet Union’s highly publicized offer to help could be spurned would mean an important victory over the Com munists in the world psychological struggle. A Bottle Decided The President's decision on the Aswan dam was indication that the liberal, nonfiscal wing of the cabi net had won an important battle Inside the administration, although, of course, one could not jump to the conclusion that this group had won the "war.” This one-shot performance em phatically did not mean that Treasury Secretary George Hum phrey and the less-free spenders had surrendered. It was, perhaps, significant that Mr. Humphrey told t Jiuittoj gfef WASHINGTON, D. C., DECEMBER 11, 1955 slowly. Employers still held the heavy weapons, however, and the 19 th Century was one of business expansion, not union growth. In the 1880 s the first big labor federation was formed, the Knights of Labor. It lasted as a real force for less than a decade. It fell after losing some big strikes and after a cigarmaker named Samuel Gom pers organized a federation of craft unions, the American Federation of Labor, to preserve craft privileges. Growth and Strife The AFL in 1886 had about 150.- 000 members. It grew slowly until the first Roosevelt gave it White House support. Membership Jumped to 2 million. The pre-World War I years of labor-management strife slowed down growth, however, and radical activities of the Industrial Workers of the World caused strife within the house of labor. The AFL grew again during the war, only to shrink in *the ’2os, when prosperity seemed to leave no part for unionism to play. It was the Great Depression and the New Deal which brought labor its organ izational growth which has never stopped. In 1935 organized labor split, how ever. over the issue of craft vs. in dustrial unionizatiort. John L. Lewis set up the rival CIO (first called the Committee for Industrial Organization, then the Congress of Industrial Organizations). After Mr. Lewis bet his leadership on the candidacy of Wendell Will kie—and lost—Philip Murray be came president of the group. There were attempts to bring Mr. Mur ray and the, AFL president, William Green, together, but there were too many personal and professional animosities to make reunion pos sible. But three years ago both Mr. Green and Mr. Murray died, and reporters just before a Camp David Security Council meeting last week that he hoped the budget would be balanced this year, but stubbornly . avoided repeating his previously voiced hopes about a tax cut. Neither wing of the administra tion views the Aswan decision as a panicky reaction to recent Soviet overtures in Egypt and other parts of South Asia. It will take months to Judge how much of the present Soviet economic offensive is words and how much is deeds (see Her bert Bratter’s article. Page A-25.) But Congress will not take final action on the foreign aid budget before the middle of next year. We may have a deeper insight into the Russians’ new game by then. Tales of another victory for the freer spenders floated over Wash ington last week. The govern ment’s principal propaganda arm. the United States Information Agency, was reported to have gained Administration approval for asking a 50 per cent Increase in its budget, to $125 million for Fiscal Year 1957, beginning next July 1. Secretary of States Dulles gave the broad outline of the Adminis tration’s reaction to the Soviet Union’s post-summit offensive in his talk to the Illinois Manufac turers’ Association in Chicago Thursday evening. Dullesf Outline When President Eisenhower and his Secretary of State went to the summit meeting in Geneva last July they presented the Com munists with an either-or proposal. Either the Soviet Union could agree to change its society funda mentally, submit to a genuine dis armament system, turn inward to its internal problems and open the way to a real relaxation of world tension— Or the Kremlin could go on with the increasingly expensive project of matching the United States in the arms race four rubles and more to the dollar. Moscow chose the “or.” It looks like a real horse race. America has the larger economy but Russia has much better discipline. The cocky Reds are even expanding the scope of the race to challenge the United States in the new mid 20th century brand of foreign eco nomic warfare, introduced in the Truman era. Here is what Mr. Dulles indicated the USSR choice would mean to the United States: • On the military side, a reliance on limited atomic war to deter, or win, if necessary, any war the Soviet bloc might start. He called it "selective massive retaliation.” He spoke with new authority, since the Army, Air Force and Navy had lust completed their first big test of new atomic-age concepts in a 12-State maneuver in the South (Contlnued on Page A-27) JiHgygHiiHHHHBHH !i 1 WBfflm fg / wl IHT / ■ J MKKmtiL a Q |K Jpk up HP m Wf a I mk ak ™ vhh wk a m apppa Wr* J BT » •: Wt'jf jgjaj&'pP a a Hp>% :v / HHp p|? H&j. HI JHJH HBpF/ ■’ j W t. W m"- jg||jHH W # ' jH| [ Mtk. M WM H HH -V SOLIDARITY FOREVER—AFL President Meany and CIO Chief Reuther seal the merger of their two big unions. Mr. Meany and Mr. Reuther took over the AFL and CIO. respectively. They found that much of the old hard feeling had disappeared, and that large majorities in both groups wanted federation. That federation was sealed last week, and 15 million workers (out of 17 million who are union mem bers) were for the first time in his tory united in one labor movement. What to Do? 8o there they were, 15 million strong; what were they going to do with themselves? First on the agenda, for all prac tical purposes, was the Job of achieving true unity. Though all votes at the convention were unan imous. there was plenty of strife behind the scenes. Veteran labor observers guessed it would take several years to reduce all the prob lems to manageable size. They had to stamp out crime and corruption in some member unions, decide questions of racial Integration in others and work out problems of overlapping jurisdic tions in many. Meanwhile, the convention de cided, recruitment should be the big job insofar as the public was concerned The convention set a five-year goal of 15 million new members. While those were the major items of business, the talk revolved around another subject: Unions in politics. President Eisenhower himself brought up the subject in his con vention - opening address. But he was by no means the first to take note of big labor’s new power. Po litical orators for months have been arguing the propriety of labor exercising its strength in politics. Senator Barry Goldwater, Repub lican of Arizona, had said that the new labor federation would have no moral right to indorse presi dential candidates; Senator H. Alexander Smith, Republican of New Jersey, extended that doctrine to congressional candidates; Harold , E. Stassen. special assistant to the President and frequent presidential candidate, said labor’s increased political activity was a menace to the Nation's welfare. Eisenhower's Blessing President Eisenhower, however, did not view with alarm. He recog nized the interest of the new fed eration in public matters outside the realm of wages and hours, and urged only that in speaking out on these issues the AFL-CIO re spect the rights of the minorities within the union. Secretary of Labor James P. Mitchell went even farther. He urged the group to speak with a “loud and clear voice” in politics. He wished the federation well in its goal for new members, particu larly in its drive for strength in the South. Mr. Mitchell’s friendliness was hardly overshadowed by that of Democratic speakers at the con vention. The two leading candidates for the Democratic • presidential nomi nation, Adlai E. Stevenson and Averell Harriman, praised the un ion men and defended them vig orously against their Republican critics. Mr. Stevenson, who got the biggest hand of all the speakers, claimed leading Republicans were trying to foment class dissension by criticizing labor. “No election, no office, is worth such a price,” Mr. Stevenson said, “and I suggest that we put an end to it—and quick.” There was little doubt that the union officials will be of more help to Democrats than Republicans in the coming elections. Mr. Meany and Mr. Reuther said the big union would expand its political activi ties, and the convention approved a string of resolutions critical of the Republican labor relations pol icy. There was considerable question, however, as to the weight the AFL CIO officials could swing. Mr. Meany himself said that neither he nor anyone else could tell a union member how to vote. Re- sults in elections In recent years have borne out that statement. Still, 15 million members are sure to make the AFL-CIO a potent pressure group, one to be listened to by prudent politicians. N.A.M. Industrialists Rebuff Meany's Peace Plan, Score 'Socialism' Members of the National Asso ciation of Manufacturers, meeting 2,000 strong at the Waldorf, had these things on their minds last week: The AFL-CIO, politics, taxes, the expanding economy and creep ing socialism. Speakers made it clear they thought the merged AFL and CIO would form a threat to “Individual freedom and individual responsi bility.” Outgoing President Henry G. Riter 3d criticized the big union for its plan to mail the voting records of Congressmen to all its 15 million members. He called this a “union blacklist of Congressmen.” Meanwhile AFL-CIO President Meany offered to talk peace with the NAM. His announced idea was to find some area of agreement which could cut down on future labor-management strife. He didn't say so, but doubtless he felt his big new union was in a good po sition to bargain. The NAM was having none of it. however. Incoming President Cola G. Parker said he had no in tention of working out any kind of agreement with Mr. Meany. “I think that is a matter for the in dividual companies to take up with the union,” he said. Mr. Meany w r as invited to address the NAM, however. His speech was conciliatory, emphasizing the com mon interests of labor and man agement and claiming peaceful in tentions for the new federation. Charles Sligh, Jr.. NAM board chair man, answered him with a sharp criticism of union political action, “lawless” strikes and economic restraints imposed by labor. In an even sharper retort, de livered after the set speeches, Mr. Meany defended union action, spe cifically in politics. He said that if unions could not gain a voice through the two political parties, they would organize a third party of their own. Ike Supporters NAM members shaped up as Ei senhower supporters in convention discussions, but President Parker said Mr. Eisenhower should an nounce his plans soon enough that other candidates can enter the pri maries. He said he himself was a Knowland man. (Senator William F. Know land, Republican of California, told friends, meanwhile, that he would declare for the G. O. P. nomination if President Eisen hower did not reveal his plans by February 1.) Taxes must be the No. 1 target of the NAM in 1956, the convention decided. The group wants a ceiling of 35 per cent on Federal income taxes. There was no optimism that this goal would be reached, but the convention was confident that some tax cuts would be made in the coming year The outlook for business in '56 is mighty good, the convention was told. Administration spokesmen, from Secretary of Commerce Sin clair Weeks on down, said the coming year should set new rec ords. Capital expenditure on new plants and equipment will run 12 per cent above the current year, Mr. Weeks said. Mr. Weeks urged the NAM to help hold down prices and to watch lor dangerous in creases in consumer debt and in ventories. But not all is rosy in the future, President Parker warned. Ameri can preoccupation with economic security and Government aid is leading to socialism, he said. GENERAL NEWS America even now, he said, is “well on the way to the achieve ment of a Communist state as blueprinted by Marx.” ECONOMY Things Keep Booming; Treasury Sees Hope For Balanced Budget The announcement by Secretary of Commerce Weeks at the NAM convention that plant expansion would reach a new high In 1956 was just one of the indicators mad* public last week which spelled prosperity for the coming year. Government economists reported: Expenditures for plants and equipment will run about $31.6 billion, up $1.5 billion over this year. Employment was at 64.8 million jobs in November, 3 million higher than the previous year, despite a seasonal drop of 300,000 from Oc tober. Total personal income was run ning at an annual rate of $309.5 billion in October, a new record and a gain of $1.5 billion over Sep tember. At the same time, Budget and Treasury Department officers were optimistic that the Federal budget for the current fiscal year wall be balanced. Spending will be no lower than anticipated, but Secre tary of the Treasury George Humphrey said revenue is running ahead of estimates. The reason: Prosperity. TRANSIT Tydings Group Given Inside Track to Take Over Local System The Capital Transit Co. was given one year to get out of town last August after city fathers blew their tops at Transit Chief Louis E. Wolfson during the 52-day strike. In the four months since the revocation of the franchise was ordered, the District has not been able to find a new company. Last week, however, the Public Utilities Commission seemed to be making some progress. It announced that hearings would be held this Thursday to see if the new franchise should be given to a Baltimore group headed by former Democratic Senator Millard E. Tydings. The Tydings application, the P. U. C. said, was the only one of five principal proposals which contained a solid financing plan. There was no assurance, of course, that any applicant would - get the franchise. There are tremendous problems of private financing, operation and financial concessions by the city to be worked out. A couple of samples of the hitches which can arise: Star Reporter Hector McLean disclosed last week that the financial backer of one applicant, the Met ropolitan Transit Co-operative, has been in an intricate tangle of trouble recently with the Securities Exchange Commission and with Federal tax and fraud laws. The P. U. C., which has no money with which to make a detailed investiga tion of franchise applicants, was not fully informed on all the questionable activities uncovered by The Star reporter. Broyhill's Proposal And Representative Joel T. Broy hill, Republican of Virginia, tried last week to bring Mr. Wolfson back into the Washington transit pic ture. Mr. Broyhil! called Mr. Wolf son to Washington to ask him if he would keep the franchise, pro vided Congress repealed the ouster law. The Florida industrialist said he might be interested—provided the city made certain financial concessions. The P. U. C, retorted that it had no intention of wooing Mr. Wolfson, It was clear, however, that similar concessions will have to be made to any private operator of the tran sit system. A-23