U.N. SANCTIONS HOW THE OIL LEAKS THROUGH THE BLOCKADE TO RHODESIA

Press, Volume CVIII, Issue 31568, 4 January 1968, Page 8

U.N. SANCTIONS HOW THE OIL LEAKS THROUGH THE BLOCKADE TO RHODESIA

(»u

HAROLD JACKSON

in the "Guardian**, Manchester)

(Reprinted bp arrangement)

It should have come as no surprise to Commander Michael Taylor of the frigate Minerva that the French tanker Artois turned out to be innocent of blockade running. The French, in fact, have a much easier route into Rhodesia than trying the complicated business of routing oil through Beira. They just take it 400 miles down the coast to the other Mozambique port of Lourenco Marques, where nobody puts the least obstacle in their way.

Recently, a frigate of the Royai Navy on duty enforcing the United Nations blockade of Rhodesia stopped a French tanker, suspecting it of blockade running. This article describes how, and when, the oil blockade is circumvented.

The refinery there is owned by the Portuguese Sonap company through its refining subsidiary Sonarep. A minority shareholding of 27 per cent in this subsidiary is held by the French Compagnie Francaise des Petroles, which most people know under its marketing name of Total. The French Government owns 37 per cent of C.F.P. Much more important, however, is the fact that Total has the exclusive contract for the supply of crude oil to the refinery. Plans For Refinery The refinery’s capacity is 800,000 tons a year. There were plans for it to be extended, but it is not known if these have yet been completed. It supplies Mozambique, whose needs are very

small, and also the Johannesburg area of South Africa—or at least some of the distributing companies in that vicinity. It also undoubtedly supplies Rhodesia with something like 200,000 tons a year —about half its annual requirements. There is, of course, close secrecy surrounding the whole subject, but the probability is that the refined petrol is routed thought the Transvaal before being diverted northwards.

The South African Government has issued instructions to the petrol companies within its territory that they are not to sell petrol to their Rhodesian counter parts and there is little evidence of this being defied. But it is easily evaded. The Rhodesian Govenrment’s purchasing agency, Genta, has made arrangements with a number of farming co-operatives in South Africa. Bulk purchases by the co-operatives, made quite legitimately and openly, are diverted to Salisbury and then made available by the Government to distributors. The success of the whole operation may be judged by

the fact that the Rhodesians not only get their normal petrol ration but can buy more dr less unlimited quantities of “free” petrol at a premium of about one shilling a gallon. They are also reported to have been able to build up something like one 'year’s supply as a strategic reserve.

| Why should the French choose to ignore the United [Nations’ resolution on sancition? Partly, of course, for mercenary reasons. There is still too much oil chasing, too few customers in the world and the Rhodesians are having to pay premium prices for their supply. But there is a deeper political reason, as might be expected with any move by General de Gaulle. The French and the Russians are at present engaged in breaking open what they regard as the Anglo-American monopoly in the Middle East oil business. They recently enjoyed a notable success when the French, breaching their agreement with the Shell-B.P. and Esso-Mobil, who were their partners, negotiated unilaterally with the Iraqui Government and secured a huge new prospecting concession. Within days a Soviet oil delegation arrived in Bagdad for talks and it became evident that a pincer move was under way.

Where there is oil, of course, there is influence. But only if the producers are able to sell it Thus the battle for markets is under way as well as that for oil-wells. A toehold in the most prosperous part of the African continent has obvious attractions for both the General and the Russians. Crude Distinctions There is little prospect of the British being able to blockade Lourenco Marques as well as Beira, unless they are preparing to face a trade war with South Africa and Portugal. How is any frigate captain going to distinguish the crude oil destined for Johannesburg or Mozambique from that bound for Salisbury?.

In Beira tilings are easier—on paper anyway—because the non-local supplies would have to be routed via the LOnrho pipeline to the now idle refinery at Feruka. The bills of lading would show this, assuming that they are not forged. But the seepage from Lourenco Marques is after the re.ming stage, so the tankers’ papers would merely show that the cargo was destined for the refinery. No ship's captain can be questioned about what happens after that. Nor can the French—or so they claim officially. They accept responsibility only for selling the crude. The Portuguese sell the petrol, but ostensibly to South Africans—and so on down the line.