26 JULY 1957, Page 7

A A Spectator's Notebook THE ANNOUNCEMENT by the British Petroleum

Company and the Shell Petroleum Company that they in- tend to cease operations in Israel seems an almost incredible surren- der to Arab blackmail on the part of these companies. Whatever they may say about business in Israel being uneconomic, the fact is that this decision is a victory for the Arab economic blockade, which has now scored a greater success than was ever gained by their military efforts. The mischief that will be done by this appeasement at a moment when it looked as if the Arabs were coming to recognise that they must put up with Israel's continued exist- ence can hardly be exaggerated; and the com- panies are acting in direct contravention of the policy of the British Government as stated by the Prime Minister in his letter to Marshal Bulganin. And this is all the stranger in that a majority holding in at least one of the companies concerned belongs to the Government. For some time now the whole question of Arab pressure on firms and countries not to trade with Israel has been evaded, but I should have thought that the time had come to call a halt. Whatever Washing- ton may feel—and it must be humiliating for the US to have to kow-tow to the anti-Semitic policies of Saudi Arabia—there is no need for Britain to follow this bad example. The oil com- panies should be told that they will not receive the support of the Government in carrying out their pusillanimous intentions, and every pressure that the Foreign Office can bring to bear on them should be used. Oil policy in the Middle East has not always brought this country good fortune, but there is no reason why we should now be dis- honoured by it.