Ajcommittee Leader Says Arab Money Manipulating U.S. Economy

Huge surpluses of cash accruing from skyrocketing oil income is enabling the Arab states “to manipulate our economy, our diplomacy and our politics.” Bertram H. Gold, executive vice-president of the American Jewish Committee, warned here today.

Delivering the keynote address at the annual meeting of the AJCommittee’s National Executive Council at the Century Plaza Hotel, Gold described massive Arab investments in the U.S. economy and in vital, world commodities that are giving a small group of oil producing countries great political power over nations with greater military and technological strength.

As a result. Will the U.S. be tempted to strike a bargain in the Middle East at the expense of Israel? Gold asked. He noted the purchase by Kuwait, a tiny Persian Gulf oil state, of an island off South Carolina for $17 million; the purchase of billions of dollars in U.S. notes, mostly Treasury bills by the oil-producing states; Saudi Arabia’s acquisition of controlling interest in a California bank and the Shah of Iran’s purchase of a Fifth Ave, building.

He also stressed the importance of Saudi Arabia’s purchase of the entire world sugar crop this year-with the resultant rise in sugar prices to the consumer. He noted that increased oil prices “have brought about a soaring inflation accompanied by economic stagnation” in the U.S. and the Western countries. The combination of inflation, unemployment, isolationism and group antagonisms may very well lead to a new populism in America that may result in intensified inter-group conflicts, he said.

AMERICAN NAZI PARTY DISCUSSED

The National Executive Council heard a report from Seymour Samet, director of the AJCommittee’s Intergroup Relations and Social Action Department, on the widespread media coverage of activities of the American Nazi Party this past year.

While it has “failed to organize a meaningful or significant movement in the United States,” the American Nazi Party has increased its efforts to use minority groups as scapegoats for widespread frustration over Watergate. inflation and the energy crisis and has succeeded in attracting greater attention for its racist and anti-Semitic messages, Samet said. He cited a report on the American Nazis compiled by Milton Ellerin, director of the AJCommittee’s trends analysis division. which noted that federal authorities estimate the Nazi Party has no more than 200 members.

But despite their small numbers, they have attracted wide media attention by such tactics as picketing foreign embassies, the White House, book stores, theaters and synagogues; appearing in “storm trooper” uniforms before boards of education and city councils; plastering propaganda stickers on public buildings in business areas; announcing the opening of national headquarters in at least three cities: and holding “Free Rudolf Hess” vigils-in a dozen cities.