Middle Eastern Oil
None of Iraq's oil has been refined at Haifa since the Jews seized that port fifteen months ago. This has meant a very serious loss of revenue to Iraq and an almost equally serious loss of oil for Israel and the other countries of the Levant (notably Greece and Egypt), which used to be the main customers for the Haifa refinery. At present the political hostility of Iraq and Egypt to Israel, makes it impossible for the Kirkuk oil to reach Haifa either by pipe-line or by sea, but almost certainly this blockade would be brought to an end if the negotiators at Lausanne succeeded in patching up a peace between Israel and her Arab neighbours. Meanwhile the logical corol- lary to the closing down of the Haifa pipe-line—the expansion of the northern link, which terminates at Tripoli in the Lebanon— has been pressed ahead and test pumpings have been made through the new 16-inch pipe which has been laid beside the old 12-inch pipe. By the end of the year 9o,00o barrels a day should be flowing through the new pipe to Tripoli. Unfortunately there is only a fact. and all the Western pronouncements on the subject have small refinery at Tripoli which serves no more than local needs, included a clause making that clear. The decision to maintain a and the political reasons which have shut off Haifa from Iraq make skeleton organisation, so that the air-lift could be renewed at short it equally impossible to use the refinery there for the Tripoli oil, notice, and to advertise that fact to the full, is realistic and wise. It which, though synthesised (virtually half-refined) must be shipped was the determination, skill and sacrifice which went into the opera- to Europe for proper refining. But the main source of the Middle tion that first demonstrated the real strength of the West and so East's oil supplies is still South Persia, and here again progress has brought negotiation with the Russians to the point at which concrete been checked, though not interrupted, by political difficulties. After 'results were possible. But those results will only he achieved and prolonged negotiation the Anglo-Iranian Oil Company and the Per- extended if the same qualities are maintained. The skeleton air bridge sian Government last month reached the basis for agreement on a is more than a symbol of Western determination. It may yet have new concession, which conceded substantially all the demands relat- to be put to practical use. It may well be that the Russians have ing to royalties, though not those concerning the employment of decided that the inconvenience to themselves of maintaining the Persian nationals in the company, which the Persian Government blockade of Berlin is not worth while at the moment, in view of had put forward. This agreement has failed to pass the Mejlis, the fact that unemployment is becoming serious in the city, the which has now adjourned. It may secure a passage in the autumn, economic struggle is becoming harder in Western Germany, com- when the Mejlis reassembles, or there is always the chance that the petition between German and British industry is getting sharper, obstructive tactics of the Mejlis will encourage the Shah in the and the whole Western world is faced with the hard task of avoiding proposal he is known to favour for the establishment of a Senate, a serious economic set-back. It would be foolish to assume that which is provided for in the constitution but has never in fact the air-lift has become unnecessary because the Russians have become been constructed.
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