Evening star., 1945-09-30
The American Interest
In the Inland Seq
Russia's Bid for Mediterranean
Role Watched Closely Here


Russia's Bid for Mediterranean
Role Watched Closely Here
By Joseph II. Baird.
The growing Anglo-Russian conflict
of interest in the Mediterranean and
the Near East Is causing real anxiety
in official Washington, not only be-
cause of its potential threat to peace
but also because of military and COM
mercial interests of our own In that
part of the world. These have been
multiplying rapidly in the last decade,
and today are much larger than is
realized. perhaps. by most Americans.
Clashing ambitions between Moscow
and London in the Near East are moth
ing new. They date back to the days
before the Crimean War. But the
issue has been intensified by apparent
Russian efforts to build up a sphere
of influence in Iran, where the British
have large oil and other commercial
interests, and particularly by Foreign
Commissar v. M. Molotov's demand
at the Big Five meeting Of foreign
ministers in London for q Soviet pro-
tectorate in former Italian colonies
in the Mediterranean area, notably
Cirenaica.
Russia already had indicated its de-
sire for control of the DOdecanese Is
lands of the Turkish coast. Observers
here point out that If the Soviets should
gain possession of these two territories
on opposite sides of the Mediterranean,
and then establish naval and air bases,
they would be in . position to domi-
nate shipping through the INLAND sea"
While Britain's classic interest in
protecting its lifeline" to India through
the Mediterranean is known to every
schoolboy, 1t may not be so widely
realized that the United States has
come to have . similar interest. This
results, ofncials here explain, from the
fact that virtually all the American
controlled petroleum which Is marketed
in Europe moves through the Mediter-
ranean tn tankers to re1neries In Italy
and France Moreover, the American
Navy in European waters depends on
Near Eastern fuel supplies
Oil. Of course, heads the list Of Amer
ican commercial interests in the Near
East BY far the richest American
controlled field is in Saudi Arabia, where
Standard Of California and the Texas
Co. each own 50 per cent Of the Bahrein
Petroleum Co., which exploits Bahrein
Island in the Persian Gull, and the
American-Arabian Oil Co. which op-
crates on the mainland. The mainland
reserve is said to be the largest in the
States.
In Iran, the Gulf OIL Co. has a half
interest in the Kuweit fields, which are
exploited by the Anglo-Iranian Oh Co.,
a British corporation.
Operating through the Near East De-
velopment Corp. Standard OF New Yokk
and Standard Of New Jersey each have
a one eighth interest in the Iraq fields.
They have Just signed a contract with
the government Of Lebanon to erect q
refinery there.
Moreover. the Sinclair interests have
recently negotiated an agreement with
Emperor Halle Selassie emitting them
to develop oil wherever it may be found
in Ethiopia. and officials understand
they are prepared to spend $1o.0oo,0oo
on an exploration program. OIL has
never been found in Ethiopia. but Sin
clair geolosists are prepared to, gamble
on its existence in . part of the world
where other large pools have been dis
covered.
AS noted before, the Saudi Arabian
fields are by far the richest OF any
under American control, having known
reserves of 5000, 900 900 barrels, and
are just now coming into major pro-
duction. In the past, petroleum from
this area has been marketed primarily
in the Far East. due to the shipping
and refining difficulties involved in
selling it to Europe
1t will be recalled that during the
war Harold L. Ickes. War Petroleum
Administrator, advocated the building
with Government funds of q $3.50
GOO pipeline from the Saudi Arabian
fields to port at the western end of
the Mediterranean where it would be
loaded on tankers for shipment to
European markets. This project was
killed As q result of opposition both
by the British and by some of the
American companies. who feared Gov
ernment intrusion into their business.
Officials here understand that Stand
ard Of California and the Texas Co. now
are considering building the pipeline as
q private venture. There is q difference
OF opinion among officers of the two
companies, it is said, as to whether
Government participation should be
asked IN the form of . credit from the
Export-Import Bank. Some of them
have pointed out that If the line is built
the Standard-Texas Co. investment In
the Saudi Arabian field will total $780,
100000, and that in the event of war
Washinston's interest in protecting this
would be enhanced If there were Gov.
ernment participation.
Aside from Oil interests ut the eastern
end of the Mediterranean, there are
other large American commercial invest
ments. General Motors has q large
plant at Alexandra, Egypt: Ford has
one at Istanbul, and other American
marketers Of radios, typewriters, wash
ing machines and varied industrial
products have . stable stake IN the
Near East.