White House Explains Navy’s Order Aiding Arab Boycott of Israel

The White House today sought to explain the motive behind the order issued by the U.S. Navy with regard to awarding of contracts to American shipping firms. The order has evoked many protests because it is considered as aiding the Arab boycott against Israel.

The explanation is contained in a letter addressed to Adolph Held, national chairman of the Jewish Labor Committee, who had sent a telegram to President Eisenhower, protesting discrimination by the U.S. Navy in awarding contracts for oil cargo transport to acquaint shipping firms who wanted to trade with Israel. Signed by Wilton P. Persons, assistant to the President, the letter reads:

“On behalf of the President, I am replying to your recent telegram concerning Navy shipping contracts. The Secretary of the Navy advises that recent newspaper articles reflect a misunderstanding of the purpose and effect of contractual provisions in Navy charters. No vessel owner is precluded from bidding on a Government contract for the transportation of oil cargoes. In awarding contracts for ocean transportation, the fact that a vessel has, or has not, traded with Israel is not taken into consideration.

“The Military Sea Transportation Service of the Navy is the agency responsible for ocean transportation for the Department of Defense. That agency’s contracts. I am informed, have a provision putting shipowners on notice that ships that have traded with Israel may not be permitted by certain countries to come into their ports. It spells out the options that the Government may exercise in the event a ship that has traded with Israel is not permitted to load.

“By doing so, it assists the shipowner who might unknowingly undertake a service he cannot perform and thus tends to avert financial loss to him. It is also of assistance to the Government in preventing offerings of ships that would be unable to unload important cargoes of aviation and fleet fuel. “