ADL Charges Major U.S. Firms, Two Federal Agencies with Bowing to Arab Pressure Against Israel, Jews

The Anti-Defamation League of B’nai B’rith today charged that a score of major American companies and two federal agencies are discriminating against Jews and refusing to do business with Israel as a result of Arab pressure and economic warfare against Israel and Jews.

At a press conference at the ADL offices here, Seymour Graubard, ADL chairman, charged those companies with “subvergence of the American Constitution” and with violating American policy as set forth in federal export control regulations which discourage boycotts against friendly nations, and the anti-discrimination provisions of the 1964 Civil Rights Act.

Graubard called for “an immediate government probe, a clear statement of federal policy, implementation of U.S. regulations, and the adoption of new legislation, if necessary, to halt dishonorable and illegal business practices.” According to Graubard, a nationwide, ongoing investigation conducted by the ADL revealed that while there are American companies resisting Arab demands, others are yielding to Arab coercion and discriminate against Jewish employes and refuse to do business with Israel.

Graubard charged further that some American companies are voluntarily excluding Israel and American Jewish management and professional staff in the U.S. and abroad “as they make a wild scramble for a piece of the Arabs’ new wealth,” The principles of Hitler “are being approached by the Arab nations,” Graubard said, adding that “Jews are once again being singled out as the scapegoat for economic imperialism.”

OPEC AND ARMY ENGINEERS CORPS CITED

Arnold Forster, ADL associate director and general counsel, who directed the nationwide investigation through the agency’s fact-finding department and its 27 regional offices, cited the two government affiliated agencies as the Overseas Private Investment Corporation, which is empowered to stimulate investments abroad with a $100 million credit from the U.S. Treasury Department,

Forster gave as an example of OPIC’s complicity, its action in organizing a mission of American business representatives to the Middle East and North Africa this month. He said that OPIC asked one of the firms involved to withdraw a Jewish vice-president proposed as a participant and send a non-Jew instead.

The Army Corps of Engineers, he continued, although directly involved in projects which exclude Jews, has issued no instructions regarding such discriminatory conditions. “The question to be asked of the Defense Department,” Forster said, “is whether or not the Corps is obliged to comply with the U.S. anti-discrimination law.”

U.S. FIRMS IDENTIFIED

Among the companies the ADL named were:

International Schools Services, Princeton, N.J., a teacher recruitment agency for issuing job orders in behalf of the United Arab Emirate State of Dubai which prohibit applications by teachers who are Jewish, have Jewish surnames or Jewish ancestors.

Guaranteed Mortgage Services, Inc, and Wizard Mortgage Banking Corp., of Lakewood, Colo., for a letter (Sept. 11, 1974) written by an official of Guaranteed, on Wizard stationery, offering short- and long-term investment funds to a Denver bank–with the proviso that “no board member or director shall be Jewish and no stockholder controlling 20 percent or more of the bank’s outstanding stock be Jewish.”

Bendix-Siyanco in Columbia, Maryland, a joint venture of Bendix Field Engineering Corporation and Saudi Maintenance Company, Ltd., which–under the supervision of the U.S. Army Corps of Engineers–is recruiting management personnel, technicians and instructors for the Saudi Arabian Ordinance Corps program and has an employment application requiring applicants to state their religion.

Pacific Pump Corporation, Huntington Park, Calif., a subsidiary of the Dresser Corporation, Dallas, Texas, for cancelling a pending contract to sell $2 million worth of industrial equipment to an Israeli corporation in capitulation to the Arab boycott.

Ashland Chemical Company, Ashland, Kentucky, for specifically stating that it has a corporate management position of not dealing with Israel “either directly or indirectly” because it “represents too serious a risk to even consider.”

Chase Manhattan Bank for refusing to open an office in Israel while doing business throughout the Middle East. The first issue of the bank’s new bi-weekly report, “Mid-East Markets,” described potential investment opportunities in every Middle East country except Israel, the second issue mentioned Israel only in passing.

In addition, Forster also cited several architectural firms on the East Coast without identifying them by name.

TWO FIRMS RESPOND TO CHARGES

In response to questions by the Jewish Telegraphic Agency, a Chase Manhattan spokesman denied today the ADL’s charges that the bank refused to open a branch in Israel so it could do business with the Arabs. “We did not open a branch in Israel because of economic and business considerations,” the bank’s spokesman said. He denied that there was any official Israeli demand that Chase Manhattan open a branch in Israel, adding that the bank was handling Israeli Bonds business here for many years. He admitted, however, that Chase Manhattan is planning to open a branch in Amman, Jordan in addition to its branches in Beirut and the Persian Gulf.

The president of the International Schools Services in Princeton, N.J., Dr. John Sly, said in response to the ADL’s accusation: “We are a private, non-profit organization, We do not discriminate against anybody,” He said that his organization did not get any order from Dubai against recruiting Jewish teachers, but he added that it was doubtful that any Jewish teacher would receive a visa to enter Dubai.

STATE DEPARTMENT OPPOSED TO BIAS IN ANY FORM

(In Washington, Secretary of State Henry A. Kissinger was asked today to comment on the ADL allegations of discrimination on the part of the U.S. Army Corps of Engineers. The Secretary said he did not know of this charge and said the question should be directed to the Defense Department. He said he did know that the State Department is totally opposed to discrimination in any form, He said Department officers were assigned regardless of race or religion, Kissinger also said that the U.S. basically favors Arab investments in American firms but opposed discrimination by the recipients. He said the U.S. would use whatever moral pressure can be brought to bear in cases of discrimination against banks.)

RECOMMENDATIONS FOR ENDING TREND

Graubard gave the following ADL recommendations for ending what he termed “a disgraceful and dangerous trend”:

Intervention by federal and state anti-discrimination agencies to prevent U.S. business firms from barring Jews in an effort to win Arab contracts.

Strengthening by the U.S. Department of Commerce of Section 30 of the Export Control Law which now declares “It is the policy of the United States to oppose restrictive trade practices or boycotts fostered or imposed by foreign countries” against friendly nations and requires that the Department of Commerce be notified of requests for such discriminatory compliance, The law should be amended to carry penalties for failure to report and for complying with the demand for discrimination.

Broadening the investigations of all Congressional committees and federal agencies currently probing the extent of Arab investments in the U.S. to examine evidence of Arab anti-Israel or anti-Jewish demands as the price of the investment.

Instruction by President Ford to federal agencies and departments involved in promoting international trade or doing business with foreign nations that they must abide by American legal prohibitions against religious and racial discrimination.

Investigation by the U.S. Attorney General of possible anti-trust violations and, where found, immediate prosecution.

Graubard also called upon American business leaders “who have a high regard for this nation’s constitutional precepts and democratic practices” to join together “in condemnation of Arab black-mail demands and those who capitulate to them.” He said, “principles must come before profits.” He stated, in response to a question, that the ADL did not write Ford on today’s press conference subject, but added, “We hope that he (Ford) will take a decisive action.”