President Muammar el-Qaddafi of Libya and President Anwar Sadat of Egypt were closeted in discussions in Tripoli today that diplomatic observers here view as crucial to the projected merger of their two countries scheduled to take place Sept. 1.
The Egyptian leader arrived in the Libyan capital Sunday, ostensibly to participate in ceremonies marking the third anniversary of Libya’s take-over of the giant Wheelus Air Force Base. The former American facility is now known as Okba Ben Natah.
According to observers, many key points have to be settled between the two presidents before the merger can be effected. The Egyptians reportedly have serious reservations about the Libyan “Cultural Revolution” instituted by Qaddafi which has placed many vital aspects of Libya’s economy and social institutions in the bands of “revolutionary committees.”
Col. Qaddafi nonetheless seemed to have Sadat’s blessing when he announced in a speech last night the nationalization of the Bunker Hunt Oil Co. of Dallas, Texas, the first American oil firm in Libya to be expropriated.
In an address from the air base, broadcast live by the Libyan radio, Qaddafi stated flatly that the act was aimed at punishing the United States for what he termed its pro-Israel policy.
STATE DEPT. UNPERTURBED
He described American oil companies as instruments of the American “policy of domination” in the Middle East and declared, “We tell America with a loud voice today that she needs a sharp slap in the face from the Arabs.”
Prominent in Qaddafi’s audience as he spoke were President Sadat and President Idi Amin of Uganda. The Libyan leader said “The time has come for the Arabs to take up the challenge of the United States and to pose a serious threat to American interests in the area.” His words echoed frequent exhortations by President Sadat to his fellow Arabs to use their control of oil as a retaliatory weapon against America’s pro-Israel stance.
(The United States appeared unperturbed by the nationalization. State Department spokesman John King told newsmen at the department’s daily briefing in Washington today that the U.S. was “studying” Qaddafi’s speech. He referred to a statement by President Nixon of Jan. 19, 1972 in which Nixon said that the U.S. recognized that foreign governments can nationalize private firms.
(According to the Nixon statement, the U.S. attached three conditions to such expropriations–that they be non-discriminatory; serve a public purpose; and provide prompt and adequate compensation for the seized property. King refused to comment on whether Qaddafi’s act fulfilled any of those conditions.)
MORE NATIONALIZATIONS FEARED
Observers here believe that the nationalization of Bunker Hunt, a relatively small producer, may be a prelude to similar expropriations of larger American oil firms operating in Libya. The American-owned Amoseas, Occidental and Oasis oil Companies together account for about one-half of Libya’s oil production.
Those three companies have been involved during the past month in talks on Libya’s demand for “full control,” a term the Libyan government so far has failed to define. Bunker Hunt had operated in partnership with British Petroleum until Dec. 1971 when the British firm’s holdings were nationalized by the Qaddafi regime. British Petroleum is now run by the state-owned Arabian Gulf Exploration Co. According to industry sources in Tripoli, whatever action Qaddafi took against Bunker Hunt he would sooner or later take against the other American firms.
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