iva La

California
Standard

ee ee
> SAUDI ARABIA “Fy.

wm am Percentage of Aramco ownership:
Soudi Arabia, 25%; California Standord,
Exxon ond Texaco, 22.5% each; Mobil, 7.5%

0 Proved oil fields

Many people have been led to
believe that the current “Energy
Crisis” is a direct result of the
war in the Middle East. Oil com-
many advertising, cartoons and
editorials have implied, if not.
said directly, that the shortages
stemmed from the “Arab
stranglehold” over the U.S.; that
the Arabs have taken oil from
our furnaces like candy from a
baby.

This is a prime situation for
racism against those countries
to take firm hold. And although
the Nixon Administration and
the oil companies are careful
not to attack blatantly the Arab
nations, they prevent people
from truly understanding the
Situation.

Have you ever heard of Ar-
amco — the Arabian American
Oil Company? Probably not, for
Aramco is not well known in
this country. Owned by four
giant American-based oil com-
panies — EXXON, Standard of
California, Texaco, Mobil — and
the Saudi Arabia Government,
Aramco produces about 90% of
the oi] taken from the sands and
waters Of Saudi Arabia.

Presently, it is the world’s
third largest producer of petro-
leum, the largest Middle East oil
producer and the world’s larg-
est exporter, surpassing in re-
oa years both Venezuela and

Unrivaled Role

“Aramco’s role in the overall
world Oil picture is unrivaled,”
declared Marcos Y. Namuj, a
leading oil analyst with the Wall
Street firm of H. N. Whitney,
Goadby and Co. It has proven
reserves of about 139 billion
barrels (compared with 37 bil-
lion for the U.S., 62 billion for
Iran, and 13.7 billion for Vene-
zuela) -

And by the 1980’s, the coun-
try — or rather Aramco — :is
expected to supply about 25%
of the world demand and 33%
of the U.S. demand.

Today most of Aramco’s oil
goes tO Europe and Japan, but
it is also participating in the
Arab countries’ embargo of oil
to the U.S. as a result of war
in the Middle East. The embargo
— a 25% reduction in oil sup-
plied to the U.S. and all other
countries who actively support
the Israeli war effort, will con-
tinue, the countries say, until all
Arab territories occupied by
Israel during the 1967 war are
returned.

Middle East oil accounts for
only 6% of the U.S.’s daily oil
consumption, however.

Aramco isn’t worried about

NG FAT ON OIL

the embargo since its only effect
for them will be to increase the
energy scare and scarcity in the
U.S. thus driving up prices —
and profits — on the fuels that
that are available.

Prior to the current Middle
East war, the Arab oil-produc-
ing countries participating in the
Organization of Petroleum Ex-
porting Countries, have also in-
creased taxes on oil revenues
held by the oil companies. This
did not phase Aramco and the
other American oil companies
located throughout the world
either. ;

Tax Dodges

Why? Because, according to
U.S. tax law, the oil companies
can deduct from the taxes they
owe the U.S. government any
“taxes they pay a foreign govern-
ment.

And because the companies
were able to increase their
prices considerably more than
the tax increase, their per bar-
rel profits rose rather than de-
clined.

For example, according to in-
formation presented at a UN
seminar on Petroleum Refining,
between January 1970 and Oc-
tober 1972, the tax-paid cost of
a barrel of 34 degree Arabian
light (a kind of oil) was esti-
mated to have risen from $1.03
to $1.56. The competitive mar-
ket price rose from $1.24 to
$1.85.

The Saudi Arabian govern-
ment’s take thus increased by
53¢ But the market price went
up by 6l¢ thereby increasing oil
company profits by 8¢ or about
40% per barrel.

Cozy Position

It is possible, of course, that
Saudi Arabia may decide some-
day to nationalize its oil and
throw its American partners
out. But for the present it seems
that the country’s rulers are
happy with Aramco. As one
bank analyst put it, “Aramco’s
position is secure since the Sau-
dis understand Americans and
vice-versa. It (Aramco) has be-
come part of the fabric of the
Saudi nation. It has done its
job well.”

So at the same time that
Aramco enjoys a cozy spot in
the Middle East it continues to
perpetuate the myth of an Arab
death grip on U.S. oil supplies.
This myth, they hope, will fright.
en Americans into begging for
development of domestic U.S. en-
ergy resources — at virtually
any cost. And domestic develop-
ment means increased profits

which is precisely the oil com--

panies’ cup of tea.

—Liberation News Service

PACIFIC TRIBUNE—FRIDAY, NOVEMBER'30, 1973—PAGE 4 +

If ISEMAVOb YA

MOAT D4

For world trade .

Several important aspects of
the 8th World Trade Union Con-
gress, which met in the Bulgarian
seaside resort of Varna, Oct. 12-

22, were discussed in these Pages -

in October (Bruce Magnuson’s
Labor Scene). .

Now the final document of the

Congress — Appeal to Workers ©

and Trade Unions of the World
— drawn up by representatives
of 200 million workers On all
continents, has reached Canada.

For its astute presentation of

the arguments for world-wide .

trade union unity in this period,
and its enumeration of areas
ripe for cooperation, the Appeal
deserves the serious attention
of Canadian trade unionists.

Calling upon “workers and
unions everywhere to develop
united trade union actiom in de-
fence of ‘our class interests and
for the satisfaction of oUF com-
mon demands and aspirations,”
the Appeal points to these real
challenges. :

—the monopolist comcentra-
tion of capital has advanced to
an unprecedented degree result-
ing in factory closures, massive
redundancies, downgrading and
economic instability;

—there is a growing tendency
for inter-relation of the interests
and activities of the monopolies
and the capitalist state, which
puts the nation’s resources to
work for monopolist develop-
ment, to the detriment Of the
needs of the workers 2nd all
working people;

—the multinational cOmpani-
es, by extending their domina-
tion over several countries and
different continents, are ¢xer-
cising a policy of super-€XPloita-
tion at world level and Posing a
real threat to the sovereignty of
those countries where they con-
trol the vital sectors of the eco-
nomy.

General Crisis

The Appeal points Out that
profound scientific and teCchnolo-
gical changes boosting the
speed mankind’s advance to-
world’s productive forces Should
speed mankind’s advance to-
wards well-being and progress.
But instead, it says, in the
“deepening general crisis in the
capitalist system, in political
social and cutural spheres,” the
outcome for working people is

A turn

BEIRUT — _ Repres€ntatives
of the Communist parties of
Iraq, Jordan, Syria and_Lebanon
met together on Nov. 17: A com-
munique at the end of the meet-
ing stressed the followis8 points:

“The October war haS marked
an important turn in the history
of the Arab peoples’ liberation
movement.” Broad ati-impe-
rialist solidarity, Arab-Soviet
friendship, “an essential com-
ponent of the determimation of
the liberation moveme*ts,” and
the effective position Of demo-
cratic forces around the world
provided necessary sUPport to
this “just war of liberation.”

International soiidatity has
“precipitated the isolation of Is-
rael and the United States on
the international level.’” In Israel
itself, the communiq¥e under-
lined, “the positions of the anti-
Zionist forces were sttengthen-
ed. This is especially tue of the
Communist Party of Israel,
which is leading a beToic and
persevering struggle.”

Heighten Struggle

As to the questiom Of solu-

tions to the conflict, the four

Pee

insecurity, unemployment, rt-
duced purchasing power, and at-
tacks on trade union and civil
rights and freedoms.

The efforts of monopolies and
capitalist governments to get out
of their predicament, the Appeal
states, lead to their working to-
gether despite rivalries, “in or-
der to ensure that the con-
sequences of the crisis are borne
by the working class and other
working sections of the popula-
tion.

“At the same time”, it says,
“jmperialism, in particular Am-
erican imperialism, is attempt-
ing to solve its contradictions by
becoming more aggress ive,
through a war economy and the
creation of hot-beds of tension
and by trying to maintain the
system of colonial and neo-colo-
nial exploitation.

“This situation of the interna-

tionalization of capitalist exploi-
tation and the aggressive designs
of imperialism must be opposed
by joint international action by
the trade unions and the active
solidarity of workers every-
where.

“Now that international dé-
tente is becoming increasingly
wide-spread” conditions favor
removal of “the vestiges of the
cold war within the trade union
movement,” and an increase in

“joint trade union action for the

solution of the specific prob-
jJems= ,. c

Multinationals

The 8th World Trade Union
Congress proposed to the entire
trade union movement, especial-
jy the international centres, the
ICFTU and the WCL, the open-
ing of serious dialogue on the
establishment of cooperation be-
tween all trade unions, Above
all, this entails cooperation in the
struggle:

—against the policies of ex-
ploitation of national monopo-
lies, multinational companies
and imperialism;

—against ~ the harmful con
sequences felt by the workers as.
a result of scientific and techno-
logical progress and the crisis
in the capitalist monetary sys-
tem.

—for improvement . of

the

working conditions and the pro- _

tection of the environment;

parties estimate that “a new
situation in the Middle East and
in the world offers the means of
forcing U.S. imperialism and
Israel to retreat.” In order that
this be done, political and social
struggles must be heightened in
the countries under the domina~
tion of reactionary Classes,
which were obliged, because of
popular pressure, to take a clear
position after Oct. 6.

It is in this sense, continued
the communique, that the plans
of “certain Arab sectors,” ready
to make concessions to impe-
rialism, have to be blocked,
“They hope to absolve the
United States and cast aside the
Soviet Union, which is equiva-
lent to assisting Washington
and Tel-Aviv, who desire to im-
pose capitulation on the Arabs.”
The text made it clear that
“above all, this is the case of
Saudi Arabia,” which, in gloss-

ing over the role played by.

popular forces mystifies the true
nature of the conflict.

Responsibility to People
“Evolving from their national

2.

the Arab

unity

Pirre Gensou — : os ig
eral Secretary of the Whig iain

—for the defence
and exten-
sion of trade union and civil
Behe and freedoms; :
—for universal pe;
armament, for he ae ee

e abolition of
the use of nuclear
against war; Weapons and

Unity Is Urgent

On a number of international

issues, the Con
trade union efioee called for

political sy,
freedom, i
ereignty.”

Stem of its choice
ce
Ndependence and soy:

pr
that the worlq’ ;
through ‘ Id’s workin J
ee defence of
nterests of |
sections oO!
Population.” Th
with a call, “For a
gress, freedom afl

Appeal ends
future of pro
peace!”

duty and their
the people,” the Ste ‘can

ist Parties :
necessities of ee sev

see were con

arly with “the e

: nl

penraepetton of the eee
untr i

continuation”’ ey ee 2

and the COnsolidatio a

gressive forces "oie

ernments, .

democratic

g ue all n
alestin
CcOunt of rite An

concernin
taking a
of cont

in

Ommunist Pag
Jordan Lebanon
ss that it is pos
United Nations in (eons of

movement,» Nationa

*Riey 94