Persian Gulf arms race threatens
JERUSALEM - Former military intelligence chief Haim Herzog warned that a "sharpening of knives" in the Persian Gulf — including the building of war machines in Iran and Saudi Arabia and construction of a Soviet naval base in Iraq — could prove much more dangerous to Israel than an arms build-up by its immediate neighbors.
Aluf (res.) Herzog addressed 356 delegates to the 41st national convention of the Zionist Organization of Canada, which met recently in Israel for the first time.
Many prevalent beliefs about the Middle East conflict are illusions, he said.
"We should debunk the so-called oil threat. One of the reasons that the Yom Kippur War was fought was that Sadat felt he couldn't use oil as an economic weapon without first starting a
conflict with Israel.
"The energy 'shortage' did not result from the October war."
Herzog reminded the audience of "a little-known fact," that Iraq and Libya did not join the oil embargo at that time. Oil was there for the taking if one had the money.
"Today, there is a glut in the oil market — the supertankers are full to the brim.
"So when President Ford repeats that there must be an advance in the Arab-Israel conflict because of oil, he is either misleading us or being misled.
"The use of the petrodollars is, however, a problem."
Recalling that about a year ago he entreated Jewish organizations — without success -- to set up a world Jewish body to counter the Arab oil boycott, Aluf HerzQg asked the delegates to take his advice now, before it
was too late.
"It should be organized and open; we have power in some areas.
"Putting up a solid front would pay the Arabs back in their own coin."
The chances for another war in the near future are remote, said Aluf Herzog, although "the world is getting psychotic about it and Ford keeps mentioning it."
Jordan's King Hussein is stronger now than after the Rabat convention, when "everybody was talking about Yasser Arafat. . . From the purely military point of view, we are speaking from a position of strength. . . and the other side knows it. That's why the Syrians renewed the ceasefire."
Peace will come, he continued, when "Sadat says the same thing on Egyptian television as he says in the American and Canadian
media.
"Such inconsistency is a problem for us, because outside Egypt he appears so reasonable."
Aluf Herzog asserted that the illusions in the Middle East are sometimes furthered by Israeli leaders themselves, who tell conventions like the Canadian Zionists about "fighting for survival and Massada. We have day-to-day problems, and we will meet them."
Tourism minister Moshe Kol told the delegates that theirs was one of the first conventions of the 70 expected to meet in Israel this year, bringing some 40,000 persons.
He noted that tourism from CamdSi increased 11 percent in 1974, while American tourism fell by an equivalent amount.
At a press conference earlier in the day, convention chairman Max Goody and Zionist Organization president Daniel Monson
HAIM HERZOG ... addresses ZOC confab
complained that the Israel information campaign in Canada gets too little cooperation from Israel.
They called for more coordination in the presentation of Israel's cause, which Is being smothered by the hundreds of millions of dollars spent on propaganda by the Arabs each year in the U.S. and Canada.
. JCNS
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SHABBAT SHALOM—FRIDAY, MAR. 7, 1975—ADAR 24, I .
ISRAEL BRIEFS
Vol. XUI. No. 10 ^^$15.00 per year, this issue 30c
TRUDEAU BACKS ISRAEL'S RIGHTS
JERUSALEM — Canadian Prime Minister Pierre Elliott Triideau has stated that his government "supports i n every respect the right of Israel to exist in peace as an independent state within secure and recognized boundaries, free from threat and acts of force."
In a letter read before delegates to the Zionist Organization of Canada's national convention at the Jerusalem Hilton, Tnideau said: "It is our sincere wish that the legithnate concerns of the peoples and countries in the Middle East, as elsewhere, be settled without resort to violence or terrorist activities."        (Jerusalem Post)
U.S. firms 'secretly' bowing to boycott
CLAIM COLD CURE
JERUSALEM — Two IsraeU scientists. Prof. E. Eilan and Prof. R. Stein, claimed to have developed a serum against the common cold, with injections giving immunity for a year.
No Danish boycott
COPENHAGEN — Several Scandinavian companies in their business dealings with the Arabs, have refused to comply with the Arab boycott of Israel.
The Danish F. L, Smith company, supplier of machinery for cement factories in Haifa and Ramie, recently refused to sign part of a contract it made with Iraq.
The unsigned paragraph stipulated that the company should have no commercial dealings with
The $100 million contract will go into effect without the boycott paragraph.
It was reported that two unnamed Norwegian companies have done likewise.
GERMANY CONSIDERS REPARATION WIND UP
BONN The West German government is discussing the pay r ment of DM 600 million in reparation to wind up restitution to Jews who suffered under the Nazis but who have, for various reasons, not yet been compensated.
BY RICHARD YAFFS
NEW YORK—"Thousands" of American companies, as well as some Government agencies, are complying with the requirements of the Arab boycott of Israel, thus violating Federal and State laws and regulations. This charge was levelled by the Anti-Defamation League of B'nai B'rith at a press conference here.
A number of companies were named as showing "widespread willingness" to become "secret partners" m an "Arab plot to cut Israel off from its principal ally, America, and purge Jews from companies doing business with Arab States."
Two US Government-affiliated • agencies were named by the ADL as succumbing to the Arab boycott.
They were Overseas Investment Corporation-which is empowered to stimulate investments abroad with a $100 million credit from the US Treasury-and the Army
Corps ofEngineers, which watches over construction work in Saudi Arabia. The latter was described as "the worst offender in demanding the exclusion of Jews."
Afterwards the Army Corps of Engineers admitted that it was excluding Jewish officers from engineering projects it was handling in Saudi Arabia.
A Senate committee published a list of 1,500 US firms on the Arab blacklist.
Among the private companies cited was the Chase Manhattan Bank, which was accused of refusing to open a branch in Israel though invited to do so by the Israeli Government.
The bank, which maintains a branch in Beirut and is to open other branches in Cairo and several Persian Gulf States,is the fiscal agency in the United States of Israel Bonds.
Replying to the accusation, a bank spokesman denied that it had
refused to open a branch in Israel for other than economic reasons.
Other companies charged with surrendering to the Arabs are comparatively unknown. One, a credit organization, when soliciting business from Texas banks, made it mandatory that no officers
(Continued on Page 3) See: BOYCOTT
U.N. POSTING
JERUSALEM — Chaim Herzog, military commentator and former military governor of West Bank, is understood to have accepted appointment as Israel's permanent representative at United . Nations.
KISSINGER VISIT
JERUSALEM —U.S. Secretary of State Dr. Henry Kissinger is expected in Cairo tomorrow and will be in Syria and Israel during a trip estimated to last at least 10 days.
*    * *
ALLON TO PARIS
JERUSALEM — Israeli Foreign Minister Yigal Allon will pay an official visit to France April 18.
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Kh-Ni-.Gi^
YITZHAK BABIN spoke recently to an audience of nearly 600 students and faculty at the Technion^Isniel Institute of Technology, as part of the Student assodation's lecture series. Hie Israel Premier said that the Jewish State was capable off defendbif itself under any circumstances, except in the case of a super-power-^eaninf the Soviet Union—actively arrayed against it. "If a super-power afainse which even the whole of Europe can-not stand alone Is against us, then, with all due respect to IsHrael, it cannot stand alone either."