Bills in Congress Seek to Prohibit U.S. Agencies to Yield to Arab Boycott

Bills to prohibit United States agencies from imposing contractual provisions which put ships trading with Israel at economic disadvantage, were introduced in Congress this weekend. The bills were prompted by practices followed in the past by the Navy which were considered as a “surrender to the Arab boycott.”

Three Democratic members of the House-Mrs. Edna F. Kelly, Herbert Zelenko of New York, and Thomas J. Lane of Massachusetts–reintroduced bills to prevent any U.S. Department or agency to enter into any charter containing provisions which would make ship owners liable for expenses incurred, if their ships are penalized by Arab authorities for having traded with Israel.

A clause to this effect was included in forms of the Military Sea Transportation Service, inviting bids to carry cargo, mainly oil, for the Navy. The clause was intended to discourage ships trading with Israel from participating in these bids, since an oil tanker was refused facilities by Saudi Arabia for having traded with Israel, and the ship’s company sued the Navy for damages.

When these practices became public knowledge about a year ago, after having been followed for two years, the Navy came under sharp criticism both in Congress and in the press. Following the public indignation over the “surrender to the Arab boycott,” the Navy announced that it will discontinue the use of the offending clause. But Vice Admiral Roy Gano, MSTS commander, said at the same time that “a business man whose ship has traded with Israel will be very foolish to bid on MSTS oil cargoes,” explaining that the owners will still be held responsible for extra expenses.

Some legal experts felt legislation was necessary to prevent the recurrence of past practices. Bills were introduced in the last Congress, but it was too late in the crowded legislative session for them to be considered. They have now been re-introduced in the 87th Congress.