Government legal experts are scrutinizing the franchise agreement by which Egypt gave the Amoco Oil Co., an American firm, oil exploration rights in the Gulf of Suez. The purpose of the study is to find legal points that would enhance Israel’s position in its current dispute with the U.S. over Amoco’s right to drill in the eastern sector of the gulf claimed by Israel.
Legal sources here said today that the study, covering hundreds of pages of documents, would take considerable time. But they see no reason to hurry because they believe that a long “and difficult” process of negotiations lies ahead for Israel and the U.S. Negotiations have been in progress for some time and government circles say Israel has not yet received a satisfactory reply from Washington on a basic matter–that Amoco will desist from further operations in the Israel-claimed waters until an agreement is reached.
Israeli lawyers are trying to determine whether the contracts signed with Amoco all date from 1964 when the eastern waters of the gulf were undisputably under Egyptian control and were simply renewed in 1975; or whether at least some of the contracts were concluded in 1975, long after those waters had come under Israel’s control. In the latter case, the experts say, Israel’s position that any activity in the eastern gulf waters must have its prior approval would be greatly strengthened.
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