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Possible Effects of Syrian-egyptian Merger Studied by State Dept

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The State Department today continued studying reports of the developing “United Arab Republic” of Syria and Egypt while official sources reported it difficult to predict the direction the new Arab move will take.

One official speculated that perhaps too much was being made of the united Arab movement. In his view, it might be nothing more than an attempt to start a revitalized Arab League.

It was thought here that there is no substance to reports of Jordan seeking organization of Arab counter-bloc. It is known, however, that Jordan is in consultation with Saudi Arabia and Iraq.

(In Israel, the press predicted today that President Nasser’s next move would be the nationalization of oil pipelines terminating in Syria. The Egyptian ruling military junta has boasted openly that between the Suez Canal and the trans-Syrian pipelines, the federated state will control the movement of 90 percent of Europe’s oil. There have been hints aplenty that this situation will be used to pressure the West.)

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