ADL Charges over 200 U.S. Firms, 25 Banks Waging Economic War Against Israel Jointly with the Arabs

The Anti-Defamation League of B’nai B’rith today charged that “more than 200 U.S. corporations and 25 major commercial banks, many in alliance with Arab American Chambers of Commerce, are waging economic war against Israel in collaboration with the Arabs.”

Describing the group as a “Who’s Who of American banking and industry,” the ADL said “they are in flagrant disregard of U.S. anti-boycott policy, with the banks also flouting Federal Reserve Board warnings against participation in the boycott.”

At a news conference at ADL’s national headquarters here, Seymour Graubard, ADL national chairman, said that “reliance on voluntary compliance with current U.S. policy has failed and therefore new, strong legislation which bans American participation in the Arab boycott is essential.”

Without such legislation, he said, the banks cited act as agents of the Arabs by demanding proof of boycott compliance from American exporters; the corporations cited either submit evidence of boycott compliance or are an integral part of Arab American Chambers of Commerce which regularly validate boycott documents for the Arabs.

BANKS AND FIRMS CITED

Among the banks named by the ADL as processing boycott-tainted letters of credit are six of the nation’s largest financial institutions–Bankers Trust, Chase Manhattan, Chemical Bank, First National City and Morgan Guaranty Trust Company, all of New York, and the Bank of America. San Francisco.

Other banks cited included First National Bank and Continental Bank, both of Chicago; First National Bank of Minneapolis; First National Bank of St. Paul, Minn.; Central National Bank and National City Bank, both of Cleveland, and Philadelphia National Bank, Provident National Bank, and the Continental Bank all of Philadelphia.

Among firms cited for submitting to Arab restrictions are: Aramco, Bausch and Lomb, Flintkote, General Mills, Ingersoll-Rand, Pillsbury and Rubatex. Some 200 corporations named by the ADL as participants in the Arab American Chambers include such major oil companies as American independent, Amoco International, Aramco, Continental, Exxon, Gulf and Occidental, and such other companies as Merrill Lynch, Pierce, Fenner and Smith, Inc., Uncle Ben’s Rice, and Bechtel Corp. (Bechtel was sued by the Justice Department on Jan. 16, 1976 for anti-trust violations regarding boycott.)

The ADL charges were based on the findings of a national field investigation conducted under the direction of Benjamin R. Epstein, the League’s national director, and Arnold Forster, general counsel.

SPECIFIC NATURE OF OBJECTION

Graubard made clear that ADL is not objecting to the bona fide promotion of trade activities of Arab American Chambers of Commerce. “These,” he said, “are helpful to the American economy. What we do seriously question is the propriety of Arab American Chambers serving as Arab boycott agents on American soil and of American corporations and their executives, through their affiliation with the Chambers, serving as tools of the Arabs in enforcing the boycott in violation of American policy.”

He said that Arab boycott operations in the U.S. persist despite Presidential admonitions, Justice Department anti-trust litigation, Commerce and State Department refusal to distribute Arab business offers containing boycott provisions, and the U.S. Export Administration Act which declares that boycott against nations friendly to the U.S. is in violation of national policy.

The ADL investigative team listed top officials of the Arab American Chambers of Commerce as: Ansbert G. Skina, of Ansev International, president of U.S. Arab Chamber of Commerce, New York; C.H. Capps, of Bechtel Corp., president, U.S. Arab Chamber of Commerce, San Francisco; and Robert R. Herring of Houston Natural Gas Co., president of American Arab Chamber of Commerce, Houston.

ARAMCO SEEN AS MOST ACTIVE

Epstein and Forster said that Aramco, which has branched out form oil to multi-billion dollar construction of gas and electric facilities in Saudi Arabia, “is perhaps the most active corporation collaborating with the Arabs in carrying out the boycott.” Aramco and its subcontractors, they continued, “not only comply with anti-Israel Arab boycott regulations which restrain free trade and place many U.S. firms at a commercial disadvantage, but issue to applicants for jobs in Saudi Arabia instructions that discriminate against American Jews.”

Two Aramco subcontractors were named as distributors of what the Arabs describe as a list of “contraband products.” They are Holmes and Narver, Inc., of Anaheim, Calif., and Fuller-Shuwayer Co., a construction firm set up jointly by the George A. Fuller Co. of New York, a division of Northrop, and the Abdullah Shuwayer Co. of Saudi Arabia.

THREE-PRONGED APPROACH OUTLINED

Lawrence Peirez, chairman of the ADL’s civil rights committee, suggested corrective, enforcement and legislative measures. He said the Department of Commerce should require Arab American Chambers of Commerce to report every boycott transaction certified by them and comply fully with all other relevant provisions of the Export Administration Act.

He also called on the Justice Department to investigate the activities of Aramco, Holmes and Narver, Fuller-Shuwayer, the cited banks and the Arab American Chambers of Commerce for possible violation of U.S. anti-trust laws and for the various state human rights commissions to examine the practices of Aramco, Holmes and Narver and Fuller-Shuwayer for possible violation of state anti-discrimination statutes.

On the legislative level, Peires said the Stevenson-Williams Bill represented one step toward needed legislation. The bill would bar American companies from refusing to do business with other American companies that are on the Arab boycott list.