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U.S. Oil Group Seeks to Block Shipment of U.S. Steel for Construction of Arab Pipeline

December 5, 1950
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The Independent Petroleum Association of America has asked Secretary of Commerce Charles Sawyer to tell what the government will do about the future export of steel such as the pipeline steel which is already partially exported to construct a pipeline from the Iraq oil fields to Banias, Syria, which would by-pass Israel territory and duplicate facilities terminating at Haifa.

Russell B. Brown, general counsel of the Association, in a letter to the Commerce Department, expressed concern over the critical steel shortage faced by the domestic petroleum industry. This shortage has been noted by members of Congress who have indicated they may be considering a Congressional investigation of the Arab pipeline–a project approved by the Arab League boycott strategy which aims to injure Israel economically by keeping oil away from the Haifa refineries.

Export licenses for the Iraq-Syria pipeline have already been issued to cover the shipment of 50,000 tons of 30-inch pipe. An estimated 140,000-190,000 tons will be needed for the project’s completion. Domestic oil men are asking here if it is wise to ship steel to an area such as the Near East which will be difficult to defend in the event of a third war.

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