Levi Sees Serious Anti-trust Questions Posed by Arab Boycott

U.S. Attorney General Edward H. Levi sees “serious anti-trust questions” in relation to aspects of the Arab boycott but feels his authority “may be limited” in the area of religious discrimination. The Department of Justice, Levi said in a letter to Rep. Elizabeth Holtzman (D.NY) that she made public today, currently has reports of the boycott’s “economic activities” under investigation.

Ms. Holtzman, Rep. Sidney Yates (D.Ill) and 136 other members of Congress asked the Justice Department to determine whether federal anti-trust and civil rights laws had been violated by Arab-inspired discrimination against Jews. Among the reported violations is the practice of some American firms to agree with Arab demands not to do business with companies identified as trading with Israel.

“In my view an agreement among separate firms doing business in the United States not to deal with a third firm would raise serious anti-trust questions,” Levi wrote. “In the area of religious discrimination, however, the authority of the Attorney General to combat such discrimination through enforcement of federal law may be limited.”

Levi referred to the testimony of Antonin Scalia. Assistant Attorney General, on March 13 before a House subcommittee investigating the boycott, that a company would not necessarily violate a law if it hired any persons able to obtain the necessary visas to enter the foreign country in which it was interested. Saudi Arabia effectively bans Jews by insisting on baptismal or other documents attesting to the applicant’s religious affiliation.

PLEASED WITH JUSTICE DEPARTMENT PROBE

Regarding possible violations of fair employment statutes, Levi noted that the Department of Justice no longer has authority to bring lawsuits concerning the discriminatory practices of private employers. The Civil Rights Act prohibits discrimination in employment on account of race, color, religion, sex or national origin. Under this statute, the Justice Department has authority only with respect to state and local governments. Alleged discrimination in federal employment is the responsibility of each individual agency, Levi wrote.

“I am informed that both the State Department and the Defense Department have responded to Congress regarding the assignment of Jewish personnel to certain Middle East countries,” Levi said. “There are of course difficulties which almost uniformly discourage Jewish foreign service officers or military personnel from seeking assignment to nations which practice discrimination against Jews, but the Defense Department and the State Department assert that they do not follow a discriminatory assignment policy. Private employers are subject to the jurisdiction of the Equal Employment Opportunity Commission.”

In a brief statement accompanying her release of the Levi letter, Rep. Holtzman said: “I am pleased to learn that the Justice Department is investigating reports of Arab boycotts against businesses that are owned by or employ Jews, or that trade with Israel. I am hopeful that the investigation will be expeditious and thorough, and that any violations of law will be speedily prosecuted.”