Evening star., 1947-07-06
Americans and British
Oppose u. n. Control
OF Middle East Oil
BY The Assoeioted Prsss

BY The Asseeioied Press
LAKE SUCCESS, N. Y, July S.
American and British sources ex-
pressed opposition today to a pro-
posed move to give the United Ma
tions administrative operation on
the rich oil resources in the Middle
East.
This view was taken as COM
petitive race for Middle East oil
concessions headed for an airing in
the U. N. Economic and Social
Council which convenes here July 10.
Scheduled for Council considera-
ton is a proposal that the U. N.
establish an authority to administer
oil resources in the Middle East, by
and with the consent of the coun-
tries involved.
The proposal was submitted by
the International Cooperative Al
lance QCA), one of the nongovern-
mental agencies having consultative
status in the United Nations. The
alliance represents national CO.
operatives in various parts Of the
world and claims representation
of more than 55,000,000 families.
U. N. Is Held Ineffective.
American and British sources said
any move to give administrative
operation to such valuable assets
now could not be encouraged oy
their Governments.
They held the view that the
United Nations is not in position
to effectively administer the oil re-
sources in the Middle East.
For the sake of argument, they
said, suppose the Middle East oil
fields were turned over to the United
Nations and there was the usual
East-West split, with Russia and
her satellites lining up on one side
and Britain and America on the
other.
Immediately there comes to
mind these questions, said one
source. Would the fields be able to
run effectively? Would the oil be
directed to the Western Hemisphere
or would there be encroachment by
Russia and her Satellites?"
In view of Russia's attitude on
Secretary of State Marshalls eco
nomic plan for Europe, British and
American sources indicated that
prospects were very rough for any
plan including the Soviet Union,
such as U. N. administration OF
Middle East oil would embody.
One British source said he also
expected the Middle East countries
to oppose the ICA move.
U. S. Role Becoming Clear.
Meanwhile, the American role in
the Middle East is becoming more
clear.
Already at least half billion dol
lars of private capital from Ameri-
can industry is beginning to pour
into the Middle East with an imme-
diate aim to pump petroleum from
the vast reserves at double the
present rate.
More than 80 per cent of the out
put in the Middle East is controlled
by British and American interests,
the remainder by Dutch and French.
Russia has made an attempt to
get "a foot into the oil resources.
The Soviet Union signed a draft
agreement with Iran Is months ago
for Russian oil exploitation in Iran.
Under the agreement Russia would
control 81 per cent and Iran 40
per cent Of a Russian-Iran oil
development company. But the final
agreement must be approved by the
Iranian Malls (parlimenD which
was elected several months ago but
has yet to hold its first session.
The new American dollars pour
ing into the Middle East are to
build 1,000-mile pipe line from
the Persian Gulf to the Mediter-
ranean.
U. s. British Interests Join.
Until now American interests in
Middle East oil have been restricted
to Saudi Arabia, but they are join
ing British interests in Iran and
1raq.
Oil reserves, as estimated by the
'AHtICdA ColuPdHyi WIl1Cl HOluo
concessions in an area of Saudi
Arabia larger than Texas and Cali
fornia combined, will pump more
than $1,000, ,0O0,0 600 into the treasury
of that desert kingdom. The
Abraham Oil Co. estimates that
reserves in it's area are "conServa-
lively" 5000, 100000 barrels.
Syria and Lebanon will also bene-
At from the dollars pouring into the
Middle East oil fields. Under an
agreement with the Trans Abraham
Pipeline Co., the two countries have
given transit rights for a $150,000,-
900 project which will carry oil
from the rich concession in Arabia
to the Mediterranean
Lebanese Finance Minister Camille
Chammoun said recently that oil
from American-owned concessions
in Saudi Arabia may provide hard
currency guarantee for his imitation
ridden country.