The United States Government is carefully observing the proceedings now going on in Moscow in the $2, 300, 000 suit for damages brought b; two Israeli firms against the Soviet Oil Export Company, which broke a contract to deliver fuel and crude oil to Israel. The case is being argued before the Soviet Chamber of Commerce Arbitration Tribunal by Israeli lawyers.
State Department sources made Known today that the United States is interested in the outcome of the suit in view of the current campaign by the Soviet Government to promote broader East-West trade. The result of the Israeli case will determine if this campaign is economically legitimate in purpose or is purely political propaganda. The issue would resolve the question of whether Soviet trading trusts are integral parts of the Soviet Government and whether economic deals with them are tied to political ends.
The proceedings in Moscow began over three months ago. They were initiated by Delek, an Israeli oil company, which asked damages from the Soviet trust for non-fulfillment of contracts to ship 1.150. 000 tons of crude and fuel oil to Israel during 1957-58. The week after the Sinai campaign, the USSR halted the oil deliveries, unilaterally breaching the contracts.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
