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1965

Abdallah al-Tariqi, 'The Nationalization of the Arab Oil Industry: A National Necessity' (Excerpts)

The full version of the text excerpts included here was reprinted in a collection of the works of its author, Abdallah al-Tariqi (1919-1997), who had first published it in its Arabic original in the journal Dirasat ‘Arabiyya and before held it as a speech, in 1965 at the Fifth Arab Oil Conference in Cairo.

Al-Tariqi was born in what would become Saudi Arabia. He was educated at Fuad I (now Cairo) University Egypt (B.S.) and the University of Texas (M.A. in petroleum engineering and geology), and trained for another year in the US oil industry before returning to Saudi Arabia in 1953. The next year, he became Director-General of Petroleum and Mineral Affairs in the Ministry of Finance and National Economy. As such, he was inter alia responsible for relations with the then only oil company in Saudi Arabia, a conglomerate of four US firms called the Arabian American Oil Company (ARAMCO), which had received a concession in 1933, first found oil in 1938, and began extraction from the end of World War II. While taken by the anti-imperialist stance and policies of Egypt President Gamal Abdel Nasser (1918-1970), al-Tariqi in the 1950s was a reformist modernizer. He accepted the royal Saudi political system and the kingdom’s relationship with the United States. But he was determined to greatly improve Saudi oil income and negotiation position vis-à-vis the US company, often upholding as a model Venezuela’s Creole Petroleum Company.

In parallel, he worked for more coordination between oil producing countries, to improve their position vis-à-vis Western companies. In 1957, he helped bring about a Saudi-Iranian oil information exchange agreement. In 1959, he was a driving force behind the First Arab Oil Conference, in Cairo. And there, he, the Venezuelan Minister of Mines and Hydrocarbons Juan Pablo Pérez Alfonzo (1903-1979), and a Kuwaiti, Iraqi, and Iranian delegate concluded a momentous agreement. Though informal, it “marked the first real steps toward creating a common front against the oil companies,” as Daniel Yergin put it in his classic work The Prize (1991). The agreement laid the foundation for the birth of the Organization of Oil Producing Countries (OPEC) in 1960 in Baghdad, analyzed by Giuliano Garavini in The Rise and Fall of OPEC in the 20th Century (2019).

In 1960, too, al-Tariqi became Minister of Petroleum and Mineral Affairs. But in 1962, a clash within the Saudi ruling elite cost him both his post and his ARAMCO board membership. He left Saudi Arabia; co-founded an independent oil consultancy in Beirut; and accentuated his view that oil is a global rather than country-by-country issue that needs a united Arab solution vis-à-vis the West. In parallel, his language became more pointed: he now talked about colonialism. And he embraced the nationalization of oil. This had worked in Latin America in the late 1930s when the US government needed its neighbors’ goodwill as clouds of war were gathering over Europe—but it had failed in Iran where a CIA-led coup removed Prime Minister Muhammad Musaddiq (1882-1967) in 1953, scaring Middle Eastern oil officials until the early 1960s

December 2, 1947

Report on the Activities of the Arab Office, Washington, for the First Six Months Beginning Nov.1.1945 (Excerpts)

In March 1945, the Arab League (AL) was founded in Cairo. It arrived at the tail-end of a gargantuan four-year-long endeavor to economically integrate the entire Middle East and North and northeast Africa in order to make its polities more self-sufficient during the world war, in which shipping with Allied countries was dangerous and when military trumped civilian needs. This endeavor was supported by national authorities, aided by the United States, and directed by officials of the British Empire. Britain was paramount in the region, and by 1943 its armies, with the US military, evicted all German and Italian troops from North Africa.

Towards the end of the war, the British Empire developed a greater interest in allied Arab countries cooperating more closely. Hence, it backed the establishment of the AL. The latter was not at all simply a British project, though. It also reflected a highly particular version of pan-Arab nationalism: rather than promoting territorial or political unification, it allowed key states to assert their voice in the Arab World.

The Arab League had six founding members. These were Saudi Arabia, a British ally, and Egypt, Iraq, Lebanon, Syria, and Transjordan, which all were in various ways British-ruled; so was Yemen, which joined in May 1945. Though Palestinians worked with it, Palestine was not an official founding member. Britain was not keen. As Palestine’s Mandate power, it continued to heed Yishuvi interests. Moreover, AL member governments were not truly supportive either. They did, however, take a great interest in the Palestine conflict. In November 1945, the AL re-established the Arab Higher Committee (AHC), which first was founded at the start of the Palestine Revolt, in 1936, but outlawed by Britain in 1937. When the AHC imploded due to intra-Palestinian infighting, the AL in 1946 created the Arab Higher Executive, renamed AHC in 1947. Moreover, the AL in 1945 declared a boycott of all Jewish-owned businesses in Palestine. And in 1945, too, it executed plans going back to 1944 to open abroad public relations “Arab Offices” (AO), whose main writ was to explain why Palestine’s Arabs, not the Zionists, should become the sovereign in Palestine. One AO was in London. Another was in Washington, DC, open until 1948, and a third followed in 1946 in New York, open until 1947; they have been treated in Rory Miller’s “More Sinned against than Sinning?: The Case of the Arab Office, Washington” (2004) and Daniel Rickenbacher’s “The Arab League's Propaganda Campaign in the US Against the Establishment of a Jewish State” (2020). 

Supported by some British officials, the AL opened AOs in the United States because it feared Zionist lobbying and public relations there and because it knew the US government would help shape the postwar Middle East, even if Britain was still the premier power. The man behind the idea of the AOs, Musa Alami (1897-1984), and a majority of AO officials, including Ahmed Shukairy (1908-1980), were Palestinians. There were other Arabs, too. One was the Lebanese Nejla Abu-Izzedin (1908-2008), who had received her PhD from the University of Chicago in 1934; another was the Anglo-Lebanese Cecil Hourani (1917-2020), brother of the famous historian Albert Hourani (1915-1993), who discussed the AO in An Unfinished Journey: Lebanon and Beyond (1984).

The text printed here, excerpts from a report, in English, reflects the work of the Washington AO, its travails, and the AL officials’ views of the US. It is noteworthy that the original of the text forms part of a broader file created by the Political Department of the Jewish Agency, Jerusalem, the para-state government of the Yishuv in British Mandate Palestine. The file is kept at the Central Zionist Archives, Jerusalem.