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Britain Submits to Israel on Haifa Oil Refineries Issue; Fears American Competition

August 18, 1949
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Faced with Israel’s decision to confiscate the Haifa refineries unless they are reopened soon, the British Government today decided to move oil by tanker from the Persian Gulf. The refineries have been out of operation for more than a year, since the Iraqi Government stopped pumping oil through the pipeline to Israel.

The tankers, it is learned, will move through the Suez Canal. Although nothing is known at present concerning British plans to escort the tankers, it is not expected that Egyptian authorities will attempt to interfere. The British Government has made it plain that it means to see the tankers through.

The British Government is understood to have arrived at its decision partly because of reports that independent American oil companies have made definite offers to Israel for the building of new refineries. The decision to move through the Suez Canal, in spite of the remote possibility of Egyptian opposition, also follows a growing campaign by all political parties and all newspapers for such action.

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