Washington Report on Middle East Affairs, August/September 1997, pgs. 38-41

Issues in the News

Compiled by Shawn L. Twing

Arabian Peninsula

GCC Marks 16th Anniversary:

The six-member Gulf Cooperation Council celebrated its 16th anniversary May 25, with members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates holding an official celebration at the international organization's headquarters in Riyadh, Saudi Arabia. Since its inception in 1981, the GCC has developed into a significant regional and international organization, greatly strengthening political, economic, cultural and security-related ties among its member states. The geostrategic importance of the GCC members, particularly because of the presence of massive quantities of oil and natural gas in the region, has allowed the organization an increasingly visible and influential role in international politics.

Bahrain to Buy U.S. F-16s:

Bahrain will submit a request to Congress this summer to purchase U.S.-made F-16 combat aircraft, the weekly U.S. Defense News reported in June. The tiny island nation, which is the principal port for the U.S. Fifth Fleet charged with protecting U.S. national interests in the Arabian Gulf, has developed two options for its planned purchase of Lockheed Martin F-16s. The first includes 10 F-16 C/D models with an estimated cost ranging from $150 million to $260 million. The second is for 20 F-16 A/B aircraft that would be upgraded for a total cost of $303 million. Bahraini officials are expected to make their final decision by August, and congressional approval of the sale is expected without complications.

Saudi Arabia Joining WTO in 1998:

Saudi Arabia will join the World Trade Organization as an observer in 1998 before becoming a full-fledged member in 2002, the English-language daily Saudi Gazette reported in May. Speaking in Cairo May 26 during a symposium on trade and investment in Arab countries, Ismail Abu Dawood, president of the Jeddah Chamber of Commerce, announced that negotiations are in progress to restructure Saudi commercial legislation to comply with WTO guidelines. Dawood encouraged others attending the two-day conference of more than 300 Arab businessmen and numerous Arab financial institutions to increase economic cooperation and investment among Arab countries.

Qatar Opens Stock Market:

Qatar opened an official stock market May 26 to replace the unofficial bourse operated previously by unlicensed brokers. Qatar is the fifth among the six Gulf Cooperation Council members to open an official exchange, moving the alliance one step closer to its goal of a common unified exchange market.

Saudi Arabian GDP Reaches $136 Billion:

Saudi Arabia's Finance and National Economy Minister Ibrahim Al Assaf announced in April that the Kingdom's gross domestic product reached $136 billion in 1996, four times more than the total for 1969, the Jeddah-based English-language daily Arab News reported. Among the factors contributing to this gain, according to Al Assaf, were stable economic policies, a free market economy and favorable conditions for local and international investment. Currently Saudi Arabia ranks first in the region and 28th in the world economically, he reported.

UAE Oil Earnings Hit Record in 1996:

The United Arab Emirates' export oil earnings reached a record level in 1996, peaking at $15.5 billion, according to official figures. The 1996 earnings were $2.7 billion higher than 1995 levels and exceeded a $14.7 billion record achieved in 1991. These earnings allowed the UAE to eliminate its budget deficit, increase its trade surplus and boost its economy by more than 10 percent, the central bank reported. The primary factor behind the record-level earnings was the dramatic increase in oil prices last year brought on by low petroleum inventories in Western countries, a prolonged cold season in the northern hemisphere, and Iraq's inability to sell oil on the international market because of U.N. sanctions imposed after the 1991 Gulf War.

Illiteracy Declines, Education Increases for UAE Women:

Illiteracy among women in the United Arab Emirates fell from 77.6 percent in 1980 to 11.3 percent in 1995, according to the May issue of the UK-based Jane's Foreign Report. During the same period of time the percentage of women among students attending Emirates University increased from 50 percent in 1981 to more than 70 percent at present.

Work Begins on $3.4 Billion Gas Plant in Qatar:

Crown Prince Sheikh Jassim bin Hamad Al Thani laid the cornerstone May 12 for the estimated $3.4 billion Ras Laffan Liquefied Natural Gas Company, Agence France Press reported. The project, located in the Ras Laffan Industrial City in the northeastern part of the Qatari peninsula, is expected to come on-line in June 1999 with the first shipment of natural gas exported to the Korea Gas Corporation. The Ras Laffan facilities are in addition to the Qatargas Complex, which began exporting natural gas last December. Qatar has the third largest natural gas reserves in the world, after Russia and Iran.

GCC Calls For Better Ties With Iran:

Gulf Cooperation Council member states called May 31 for better ties with Iran following the upset victory of newly elected Iranian President Mohammad Khatami. GCC Ministerial Council President and Qatari Foreign Minister Sheikh Hamad bin Jasim Al Thani relayed the message that GCC leaders hoped "Iran and the GCC member states would improve ties and resolve their disputes, especially the issue of the islands of Abu Musa and Greater and Lesser Tunbs," the Arab News reported. Appended to the Qatari foreign minister's message was a written statement urging Iran to take concrete steps to build confidence in the Gulf "in order to realize peace, stability and prosperity for the people of the region."

Fertile Crescent

Economic Growth Slows in Lebanon:

Lebanon's economy fell into recession in the first quarter of 1997 triggered by a decline in the construction, investment and financial sectors, an official in Lebanon's Audi Bank told Agence France Press in May. "Growth showed a clear slowdown and is about two percent," Fred Baz, the director of the bank's analysis unit, told AFP. In comparison, the average growth rate during the last four years was 6.5 percent, with an overall annual increase of 26 percent in public consumption. Investments also increased yearly by 13 percent and exports by 25 percent annually. Substantial declines in each of these areas led to overall economic stagnation, Baz said.

Amal Attempts Suicide Attack Against Israeli Patrol Boat:

Guerrillas from the Lebanese Shi'i opposition group Amal attempted to destroy an Israeli patrol boat by ramming it with their explosives-laden speedboat, Agence France Press reported May 19. According to a statement released by Amal, a "seeker of martyrdom managed to reach the Israeli vessel with his boat packed with explosives, blowing it apart and sinking it." An Israeli army spokesman, however, claimed that the Israeli patrol boat fired on and disabled the Lebanese vessel as it approached the Israelis. A U.N. officer in southern Lebanon witnessed the incident and confirmed that the Israeli ship sank the smaller boat with cannon fire before it exploded and sank off the coast near Naqura.

Syria Ready For Peace, Claims EU Envoy:

"I heard drums of peace and not words of war in Syria," said EU special envoy Miguel Angel Moratinos in Jerusalem following a May visit to Damascus. "What Israelis say about Syria preparing for war doesn't reflect the deep and serious commitment of Syria to negotiate with Israel," he told Agence France Press after meeting with Israeli Foreign Minister David Levy May 4. Peace talks between Israel and Syria concerning the Golan Heights occupied by Israel since 1967 were suspended 15 months ago and Syrian-Israeli relations have deteriorated seriously. Although his comments were received warmly by Levy during their meeting, Prime Minister Binyamin Netanyahu's office showed little enthusiasm for the announcement. Cabinet Secretary Danny Naveh opined that the European initiative to improve Syrian-Israeli relations threatens to undermine the U.S. role in the negotiations.

Assad Calls for Nuclear Disarmament:

Syrian President Hafez Al-Assad told reporters May 1 that Syria is unwilling to discuss any restraints on its alleged chemical weapons programs until Israel is willing to dismantle its reputed arsenal of nuclear weapons. During a joint press conference in Sharm El-Sheikh with Egyptian President Hosni Mubarak, Assad told reporters that "Those who possess nuclear weapons have no right to criticize others for possessing any other type of weapons. If [the Israelis] want disarmament, then let us start with the nuclear weapons." Israel has threatened to take military action against Syria for its alleged acquisition of chemical, biological and advanced conventional weapons. "We and the Arabs in general are ready to get rid of the other weapons," Assad said. The Syrian leader added that Israel's threats do not encourage cooperation in reducing arms proliferation in the region.

EU Signs $40 Million Aid Package for Syria:

The European Union signed an agreement May 30 that will provide Syria with $40 million in aid, Agence France Press reported. The money, part of an EU program to boost its ties to the Mediterranean region, will be used for a telecommunications project, Syria's tourism sector, and modernization of municipal administration facilities.

Turkish Troops Advance 200 km Into Iraq:

Turkish troops began a lengthy incursion into northern Iraq May 14 in pursuit of separatist Kurds of the Kurdistan Workers Party (PKK). Allied with the PKK's rival Kurdistan Democratic Party (KDP), some 10,000 Turkish troops advanced all the way to Aqra, 200 kilometers into primarily Kurdish northern Iraq. An estimated 450 Kurdish guerrillas were killed in the first four days of fighting alone. Despite severe international criticism of the operation, Turkey maintained that it was defending its borders against PKK guerrillas who routinely attack villages in eastern Turkey from bases in northern Iraq. News agencies reported that Syria and Iran, both of whom also have substantial Kurdish populations, also built up forces in the area.

Ciller Confirms Joint Maneuvers Planned With Israel:

Turkey's Foreign Minister Tansu Ciller confirmed that Turkey and Israel will hold joint military exercises this summer despite an earlier announcement by Prime Minister Necmettin Erbakan that the exercises had been canceled. During a May 17 press conference in Ankara, True Path party leader and former Prime Minister Ciller told reporters that there is no "disagreement with the other wing of the government," a reference to the prime minister's Islamist Refah party. She emphasized, however, that it would be "wrong to evaluate the joint Turkish-Israeli military exercises as aimed at anything other than defense and training." Syria particularly is concerned that Turkish-Israeli military cooperation is aimed at weakening Syria's strategic position in the Middle East.

Turkey Urges U.S. to Lift "Embargo":

Turkey's President Suleyman Demirel urged the Clinton administration to end its unofficial two-year boycott of arms sales to Turkey. During June 3 meetings in Ankara with U.S. Deputy Secretary of State Strobe Talbott, President Demirel said that Washington should start by releasing three U.S. Perry-class frigates that were supposed to be delivered to Turkey two years ago. In addition to the frigates, the United States also has refused to deliver 10 attack helicopters because of congressional concerns that they would be used against civilian Kurds in northern Turkey. Following the meeting, a Turkish diplomat told reporters that Demirel "made it clear that the shelved arms deliveries negatively affect the traditionally warm ties between Ankara and Washington."

Israeli Ambassador to Jordan Quits After Four Days:

Israel's Ambassador to Jordan Oded Eran resigned his post May 9, four days after beginning his job in Amman, Agence France Press reported. Ambassador Eran informed Israel's Foreign Ministry that he was stepping down after he was given only two hours' notice that Israeli Prime Minister Binyamin Netanyahu was meeting with Jordan's King Hussein in the Red Sea port of Aqaba. "There is no point in my continuing in light of the way I have been treated by the government," Eran said. Israel's Foreign Minister David Levy expressed his regret over the former diplomat's decision, adding, "I am sure that I can convince Oded Eran to reconsider his resignation."

U.S., Jordan Conduct Joint Military Exercises:

U.S. and Jordanian forces began a month-long series of military training exercises May 20, according to a statement from the U.S. Embassy in Amman. The exercises, code-named "Infinite Moonlight '97," include sailors and Marines from the U.S. Fifth Fleet that operates in the region. The U.S. Embassy statement did not reveal specific details of the operation, but the United States has been encouraging Jordan with aid and training to improve the capabilities of its armed forces since the Hashemite Kingdom signed a peace treaty with Israel in 1994.

Iran/Iraq

Russia Ignores Pledge to Curb Iranian Arms Sales:

Russia continues to provide Iran with missile equipment and technology despite President Boris Yeltsin's 1994 promise to U.S. President Bill Clinton not to sign any new defense contracts with the Islamic republic, The Washington Times reported May 22. Intelligence reports cited by the newspaper indicate that three Russian companies signed defense contracts last year with Iran's Defense Industries Organization to help Iran develop indigenously produced liquid-fueled ballistic missiles. Among the projects cited in the reports were the construction of a wind tunnel for missile design, creation of missile models and the development of missile-related software. Pending contracts are thought to include the sale of high-technology laser and mirror equipment as well as advanced materials for building missiles. Clinton administration officials did not deny the intelligence reports, but also did not confirm that any transfers of military hardware had taken place.

U.S. General Warns Iran Against Closing Strait of Hormuz:

Following boasts by Iranian officials in May that Iran can close the strategically vital Strait of Hormuz at will, Gen. J.H. Binford Peay, commander-in-chief of the U.S. Central Command, said in Manama, Bahrain that any Iranian attempt to do so would meet a firm American response. Peay described Iran as the "middle- and long-term threat to the region."

Annan Recommends Continuation of Iraqi Food Deal:

The United Nations Security Council voted unanimously to renew for another six months the oil-for-food deal that allowed Iraq to sell $2 billion worth of oil during the first six months of 1997. Profits from the sales are used to pay reparations to Gulf war victims and to buy food and medical staples for Iraq's civilian population.

Egypt Condemns Iranian "Terrorism":

During a May meeting in Cairo with Iran's Foreign Minister Ali Akbar Velayati, Egyptian President Hosni Mubarak said that Iran's support for political violence stands in the way of improved Egyptian-Iranian relations. According to Reuters news service, Velayati went to Cairo to invite Mubarak to an Islamic summit conference in Tehran. Egyptian officials announced later that President Mubarak will not attend the summit planned for later this year.

Israel/Palestine

No Evidence Linking Arafat to WTC Bombing:

The U.S. Justice Department dismissed a Jerusalem Post report charging that Palestine National Authority President Yasser Arafat knew in advance about the 1993 World Trade Center bombing in New York City. In a letter sent to Sen. Arlen Specter (R-PA) in May, Assistant Attorney General Andrew Fois wrote that the Justice Department "is unaware of any information that Yasser Arafat either had prior knowledge of the bombing, or was in any way involved in the conspiracy." Specter, an opponent of U.S. aid to the Palestinians, had called on the Justice Department to investigate whether there was any substance to the Jerusalem Post allegations.

Israel Admits Stripping Arabs of Residency Rights:

An Israeli official admitted publicly for the first time that Interior Ministry officials have been systematically withdrawing residency rights of Arabs living in East Jerusalem, the Arab News reported in May. Tufa Alinson, a spokesperson for Israel's Interior Ministry, told reporters that 358 Palestinians have lost residency rights in East Jerusalem so far this year. "We decided in the beginning of the year to revoke the residency cards of 1,017 Palestinians, of whom 358 have already lost residency rights, and the remainder are under examination," she said. Last year, some 689 Arabs lost residency rights in East Jerusalem, according to Alinson. Palestinian officials charge that this policy is a deliberate attempt to change the demographic make-up of East Jerusalem and that it is blatantly racist because Jewish residents of Jerusalem do not have to give up residency rights if they leave for extended periods of time.

WHO Criticizes Israeli Settlement Policy:

The World Health Organization sharply criticized Israel's settlement policy in the West Bank and Gaza, saying that it adversely affects the health of Palestinians living there. In a resolution adopted in the final plenary session of the United Nations agency charged with monitoring international health conditions, WHO expressed concern about "the adverse consequences of the continuous closure of the Palestinian territory on its socioeconomic development, including the health sector." The World Health Organization called on Israel "not to hamper the Palestinian health authorities in carrying out their full responsibility for the Palestinian people, including in occupied East Jerusalem, and to lift the closure imposed on Palestinian territory."

Rabbis Encourage Jews to Pray at Temple Mount:

In a move guaranteed to increase tension between Palestinians and Israelis, the Council of Rabbis for Judea and Samaria in May urged Jews to pray on what Jews call the Temple Mount and Arabs call the Haram Al-Sharif, Israel's Hebrew daily Ma'ariv reported in May. According to the newspaper, the decision by the influential body that functions as the de facto Rabbinical Council for Jewish settlers in Israeli-occupied territories could result in thousands of Jews attempting to pray on the site also holy to Muslims. In September 1996, Israel's unilateral opening of a tunnel adjacent to the Haram Al-Sharif led to weeks of riots that killed 62 Palestinian civilians and 14 Israeli soldiers.

Labor Allows For Limited Palestinian State:

During its convention in May, Israel's Labor Party adopted a controversial plank recognizing the Palestinian people's right to self-determination in a quasi-state with limited autonomy, the Jerusalem Post reported May 24. The plank, which was passed at the last minute after newly elected party leader Ehud Barak dropped his opposition to it, "recognized the right of the Palestinian people to self-determination" and "does not rule out the possibility of a Palestinian state." Such a state, according to the Labor Party, would not be able to form military alliances with other countries and its air space would be open to the Israeli air force. Party members also adopted a plank calling for "increased efforts to bolster settlements on the Golan, pending an agreement with Syria."

U.N. Condemns Israeli Torture Practices:

The United Nations Committee Against Torture condemned Israel's use of "moderate physical pressure" against Palestinians during a May 9 meeting in Geneva. Calling the practice torture, the Committee echoed an earlier ruling in March by the U.N. Human Rights Commission that also condemned Israel's use of sleep deprivation for prolonged periods of time, threats including death threats, restraint in very painful positions and violent shaking that has led to the deaths of several Palestinians in Israeli custody. Israeli officials responded with a statement saying that the "assumption" by the Committee "of systematic use of inadmissable methods by Israel was totally unfounded. It is based on the hearsay evidence of NGOs [non-governmental organizations] and it is regrettable that such evidence has been preferred over the authoritative testimony of the government of Israel."

North Africa

Egyptian Officer Claims Egypt Sank Israeli Sub:

A former Egyptian naval officer claimed publicly for the first time that Egypt sank the Israeli submarine Dakar seven months after the 1967 June war. In an interview in the Egyptian weekly October, Retired Admiral Muhammad Abdul Meguid Azab said a minesweeping vessel spotted the Israeli submarine two nautical miles off the coast of Egypt on Jan. 23, 1968 and attacked it shortly after. "I submitted a detailed report on the incident to the commander of naval forces but he did not believe me because Israel announced that the Dakar had gone down south of Cyprus," he said. Israel's official position is that the Dakar sank because of technical difficulties that arose when the submarine tried to dive too deep. A year after its disappearance in 1968 a buoy from the submarine washed up on shore in Gaza. Analysis of the buoy led the Israelis to believe that the Dakar had sunk off the coast of Egypt. Israel's Hebrew daily newspaper Yediot Ahronot reported earlier this year that the U.S. Navy will help search for the Dakar this summer, including sites off the Egyptian coast near Alexandria.

Egyptian Population More Than 60 Million:

Egypt's population grew 50 percent in 15 years, according to the June 1996 Egyptian census. "Egypt has around 61.5 million inhabitants compared to 41 million when I [took office in 1981]," President Mubarak announced on Egyptian state television June 1. The Washington, DC-based Population Reference Bureau predicts that Egypt's population will soar to 80.7 million by 2010, and 97.6 million by 2025 based on current population statistics.

New Oil and Gas Discoveries In Egypt:

Discoveries of significant new Egyptian oil and gas fields were announced in May. On May 7 the Spanish oil company Repsol said that it had discovered a new gas field in Egypt's western desert that is expected to produce some 1.6 million cubic feet per day of natural gas and 9,000 barrels per day of oil. The Agipa oil company, a joint venture among U.S. and Italian firms and the Egyptian General Petroleum Corporation, announced on May 22 the discovery of a field that is expected to yield nearly 3,500 barrels per day of crude oil and 1.8 million cubic feet per day of natural gas. Egypt currently produces some 870,000 barrels of crude oil per day and an estimated 1.6 billion cubic feet of natural gas per day, according to statistics provided by Egypt's oil ministry.

Libya, Egypt Sign Investment Protocol:

Egypt and Libya signed an agreement in May that could expand trade relations between the two countries, Agence France Press reported May 29. The protocol calls for the creation of joint firms and in increase in trade volume between the two countries, with a nominal target of $1 billion. Following the agreement, $150 million was approved to expand operations at an iron and steel mill in Misratah, Libya. An additional $170 million was allocated for a firm that manufactures automobiles. Other agreements included establishing a joint tourism company and a maritime line between the two countries.

King Hassan Urges Support for Education in Muslim World:

Morocco's King Hassan emphasized the need to support education and enlightenment throughout the Muslim world to challenge "the domination of extremist trends in Islamic and anti-Islamic directions," Arab News reported May 4. In a message sent to the opening session of the 15th annual Islamic Educational, Scientific and Cultural Organization (IESCO) held in Rabat, King Hassan encouraged the participants to remember their responsibilities to the worldwide Islamic community and to work against ignorance, illiteracy and intellectual backwardness "dominating half of our societies."

Egypt, Morocco Sign Trade Agreement:

During a two-day visit to Morocco, Egyptian President Hosni Mubarak and his host, King Hassan of Morocco, signed agreements to improve trade relations between their two countries. The Saudi Gazette reported May 15 that Mubarak and Hassan signed a memorandum of understanding for increased trade and investments, and also inked an agreement for a free-trade zone designed to attract foreign investors. "Arabs need to join hands to make the dream of an Arab market come true," an unnamed Moroccan official told the Saudi Gazette.

The Subcontinent

Floods Ravage Northern Afghanistan:

An estimated 40 people were killed and some 20,000 displaced by May floods in northern Afghanistan, according to reports by the United Nations and the International Red Cross. "At least 10 provinces in northern Afghanistan, covering 20 percent of the country, are affected by flooding," said a bulletin released by the Red Cross and Red Crescent in Kabul. Damage from the flooding, which began April 22, is partially the fault of Afghanistan, the bulletin added, because, "Natural disasters such as this are the direct result of the lack of a long-term national policy in Afghanistan to maintain the mountain ecosystem. Deforestation, over-grazing and ploughing of mountain slopes are factors which continuously increase the risks for this kind of disaster."

Pakistan May Sue U.S. Government Over F-16s:

Pakistan's Foreign Minister Gohar Ayub Khan told Clinton administration officials that his country may sue the U.S. government if an acceptable solution to America's outstanding $650 million debt is not resolved soon. During a May visit to the United States, Khan told offiicials that unless the U.S. government returns $650 million paid by Pakistan for 28 F-16 combat aircraft that were not delivered, Pakistan may have to sue the U.S. government in the United States. The problem arose in 1990, when the Pressler Amendment cut off all aid and military sales to Pakistan after President George Bush could not certify that Pakistan was not developing nuclear weapons. Pakistan already had paid for 28 of 60 U.S. F-16s ordered from the United States, which remain in storage in Arizona. The U.S. government says it is trying to sell them to some other country in order to repay Pakistan.

Pakistan Alleges Indian Aircraft Intrusion:

Pakistan lodged a "strong protest" with India in May after an Indian combat aircraft allegedly broke the sound barrier high in the atmosphere over Islamabad May 27. An announcement by the Pakistani air force said a sonic boom that shook windows in Islamabad was caused by an Indian MiG-29 that illegally entered Pakistani airspace after flying along an international boundary in the disputed areas of Jammu and Kashmir. Pakistani officials summoned the Indian high commissioner in Islamabad and told him that India "should take immediate measures to ensure that such violations do not recur."