Shah would supply oil to Israel

Press, Volume CXV, Issue 33777, 25 February 1975, Page 11

Shah would supply oil to Israel

'By

THOMAS B. ROSS

of the Chicago Sun Times,” through N.Z.P.A.)

PARIS, February 23. The Shah of Iran has made it clear that he will provide enough oil for Israel’s needs if it gives up the oil fields in Sinai as part of a new peace agreement with Egypt. Talking to reporters after a meeting with the Secretary of State (Dr Henry’ Kissinger) last week, the Shah also expressed doubt that there will! be another oil embargo in view of large reserve supplies throughout the world and the fact that another. Middle East war will probably be a short one. In still further good news, about oil. reporters on Dr Kissinger’s plane, as he flew here after the meeting with; the Shah in Zurich. Switzer-’ land, were told that he would be astonished if the oil producers raised prices in their!

forthcoming conference inn Algeria. As the Shah indicated a solution to one-half of the Sinai problem, Israel’s topi military man suggested a solution to the other. The Chief of Staff Lieutenant-, General Mordechai Gur said; in Jerusalem that Israel could; fight from a number of mill-' tary lines and should notl “base everything” on holding the Sinai mountain passes. General Gur’s remarks indicated that even the hard-1 liners in Israel are moving, behind Dr Kissinger’s diplo-1 macy. Dr Kissinger described General Gur half facetiously! last week as a man with a near fixation about “hills of anv elevation whatsoever.” I Dr Kissinger will return to; the Middle East next month to try to negotiate an Israeli withdrawal from the oil fields' i and the passes in return for I ’ a written peace concession by Egypt. Dr Kissinger was reported ! to have assured Israelis that

the United States would cover the cost of their loss in returning the Abu Rudeis oil fields to Egypt. The Israelis now draw more than 50 per cent of their oil from the Sinai fields at an annual saving of about ;SUS3SO million. However, the | wells at Abu Rudeis are expected to run dry in about; five years. The Shah said that Iran considers the sale of oil; “purely a commercial trans-1 I action” separate from politi-' cal considerations. Although Iran is a nonArab but Moslem country.! ’the'Shah recently vowed toside with the Arabs morel closely in any future war or] confrontation with Israeli I than he has in the past. His comments yesterday, however, clearly indicated he would supply Israel with oil ■in any case, provided the United States paid for it The Shah said: “Our policy is to sell oil to those who will take it or buy it. Once

tankers are loaded. w z e don’t mind where it goes.” Asked if Iran plans to join the Arab boycott against Israel, the Shah responded: “We have never boycotted any country. It is not part of our policy. We think politics and commerce are separate.” He then went on to say: “We will not take part in anv other (oil) embargo. It ■is my personal opinion that lan embargo won’t work any irnore because of the tremen|dous oil reserves in Europe 'and other countries. Besides, ’wars don’t last more than I three weeks.”

Reporters on Dr Kissinger’s plane were told that he be-1 Jieves the Shah’s thinking has come a long way since the oil cartel began major price increases two years ago. In Dr Kissinger’s view, oil producers are finding it increasingly difficult to cut production, in order to raise prices, and still earn enough money to support their expanding development projects. Dr Kissinger evidently is thinking of compensating Israel for a withdrawal from the Sinai oil fields in an informal way. not through a; written agreement with the' United States and Iran. He also has ordered a study! of ways in which the; United States might guarantee another withdrawal agree-’ ment and a final settlement! that would satisfy both ’ Israel and Egypt.