Israel’s return of the Alma oilfields in southwest Sinai to Egypt–its most important sacrifice so far in carrying out the terms of its peace treaty with Egypt–elicited a brief oral “note” from the State Department today. “I would only say we note with satisfaction the return of this area on schedule under terms of the Egyptian-Israeli treaty,” the Department’s chief spokesman, Hodding Carter, said.
He made his brief comment when asked for the U.S. view of the Israeli action that marked its return to a condition of total reliance on foreign sources for oil. In effect, the return of the area means that the U.S. is now committed for 15 years to sell Israel oil at market prices. This guarantee was a condition under which Israeli Premier Menachem Begin agreed to return the Sinai area and its oil to Egypt. However, it is understood that Israel has no need to invoke that commitment at present.
According to information available here, Israel buys more than 160,000 barrels of oil a day Somewhat less than half comes from Mexico. Middlemen supply the rest at extraordinarily high prices. The origin of the sales and of the oil are usually concealed to avoid an Arab boycott and a cut off of supply to those sources become they deal with Israel.
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