Sunday, April 27, 2008
Memorandum of Agreement between the governments of the United States of America and Israel-Oil, March 26, 1979.
The oil supply arrangement of September 1, 1975, between the Governments of the United States and Israel, annexed hereto, remains in effect. A memorandum of agreement shall be agreed upon and concluded to provide an oil supply arrangement for a total of 15 years, including the 5 years provided in the September 1, 1975 arrangement.
The memorandum of agreement, including the commencement of this arrangement and pricing provisions, will be mutually agreed upon by the parties within sixty days following the entry into force of the Treaty of Peace between Egypt and Israel.
It is the intention of the parties that prices paid by Israel for oil provided by the United States hereunder shall be comparable to world market prices current at the time of transfer, and that in any event the United States will be reimbursed by Israel for the costs incurred by the United States in providing oil to Israel hereunder.
Experts provided for in the September 1, 1975 arrangement will meet on request to discuss matters arising under this relationship.
The United States administration undertakes to seek promptly additional statutory authorization that may be necessary for full implementation of this arrangement.
For the Government of Israel
Cyrus R. Vance [at the time, Secretary of State]
For the Government of the United States
Annex to the Memorandum of Agreement concerning 0il
Israel will make its own independent arrangements for oil supply to meet its requirements through normal procedures. In the event Israel is unable to secure its needs in this way, the United States Government, upon notification of this fact by the Government of Israel, will act as follows for five years, at the end of which period either side can terminate this arrangement on one-year's notice.
(a) If the oil Israel needs to meet all its normal requirements for domestic consumption is unavailable for purchase in circumstances where no quantitative restrictions exist on the ability of the United States to procure oil to meet its normal requirements, the United States Government will promptly make oil available for purchase by Israel to meet all of the aforementioned normal requirements of Israel. If Israel is unable to secure the necessary means to transport such oil to Israel, the United States Government will make every effort to help Israel secure the necessary means of transport.
(b) If the oil Israel needs to meet all of its normal requirements for domestic consumption is unavailable for purchase in circumstances where quantitative restrictions through embargo or otherwise also prevent the United States from procuring oil to meet its normal requirements, the United States Government will promptly make oil available for purchase by Israel in accordance with the International Energy Agency conservation and allocation formula, as applied by the United States Government, in order to meet Israel's essential requirements. If Israel is unable to secure the necessary means to transport such oil to Israel, the United States Government will make every effort to help Israel secure the necessary means of transport.
Israeli and United States experts will meet annually or more frequently at the request of either party, to review Israel's continuing oil requirement.
Source: Israeli Foreign Ministry
Under a 1975 Memorandum of Understanding the USA guaranteed all Israel's oil needs in the event of a crisis. This Memorandum of Understanding is quietly renewed every five years. It commits U.S. taxpayers to maintain a strategic U.S. reserve for Israel, equivalent to $3 billion in 2002 dollars. Special legislation was enacted to exempt Israel from restrictions on oil exports from the USA. Moreover, the U.S. government agreed to divert oil from the USA, even if this causes domestic shortages. The U.S. government also guaranteed delivery of oil in U.S. tankers if commercial shippers become unable or unwilling to carry oil from the USA to Israel.
The British built the Kirkuk-to-Haifa pipeline in 1927. In 1934, they completed a 12-inch pipeline from the Kirkuk fields to Al-Haditha on the Euphrates River. At that point the pipeline forked. One branch went through Syria to Tripoli (Lebanon). The other went across Jordan to Haifa. The British built refineries at both Tripoli and Haifa to handle this Iraq oil. (In World War II, Germany wanted to get control of this oil.)
In 1945 the British added a parallel 16-inch pipeline in Syria. When Jews started to invade Palestine in 1945, Syria shut down its branch to Tripoli. Iraq shut down all oil from from Kirkuk to Haifa. At that point, most of northern Iraq’s oil went to the Turkish port city of Gihan, which was okay with the USA, since Turkey was a U.S. ally against the USSR. Turkey collect transit fees for this oil.
In 1947 the British oil refinery at Haifa still handled trickles of oil from miscellaneous areas, and still employed some 1,700 Arab workers, plus 360 Jewish employees. The Arab and Jewish workers formed a union to oppose British tyranny. Then the UN General Assembly created Israel. Immediately IRGUN (aka ETZEL, commanded by Menachem Begin), plus the Hagana and other terrorist groups moved in. IRGUN had bombed the King David Hotel the year before, and they started massacring Arabs in Haifa and elsewhere. They also killed British people.
In 1952, western oil companies built two new lines through Syria to Tripoli. The pipeline to Haifa was allowed to decay. Pieces of it were dismantled. Various interests used the pieces to build water pipelines.
In 2003, Bush invaded Iraq, partly to revive the pipeline to Haifa, and partly to bring oil deals to his personal friends, such as Ray L. Hunt. Small American oil companies like Hunt Oil will extract Kurdish oil as soon as Mosul and Kirkuk are broken off from Iraq... Mosul is the first stop for Kirkuk oil. From there the pipeline will go through an Arab part of Iraq. Americans will guard those sections for Israel. Then the pipeline will enter Jordan and continue to Haifa.
When the Haifa pipeline opens back up, Jordan, not Israel, will collect hefty transit fees. Kurdish oil will go to Europe via Israel, not Turkey. This is one reason why the Turks are threatening to invade. The minute Bush invaded Iraq, the Turks realized that the pipeline to Haifa would be opened back up. Therefore the Turks tried to make deals with Central Asian states (such as Azerbaijan) to get new pipelines to Turkey, but now Iran and Russia have foiled Turkish plans by forming the new alliance of Caspian Sea states. Turkey feels squeezed. This is yet another reason why they are threatening to invade northern Iraq.
I do not know who is building the Haifa pipeline. The logical choice is Bechtel Inc., but Bechtel has never been fond of working with Israelis. Therefore it is probably Halliburton, or perhaps an Israeli company.
Shortly after the 2003 invasion, Benjamin Netanyahu (who was then the Israeli finance minister) boasted, “Soon you will see Iraqi oil flowing to Haifa. It is just a matter of time until the pipeline is reconstituted, and Iraqi oil will flow to the Mediterranean. It's not a pipe dream.”
Netanyahu was punished for this outburst, since the Haifa pipeline was supposed to be secret. Netanyahu longs to be back in power, and constantly shoots off his mouth in the hope of being seen as an “insider.” Most recently he did this by announcing the 6 Sep 07 Israeli air attack on Syria, at a time when Israel wanted to keep that a secret. This is why Netanyahu is persona non grata among Israelis. When AIPAC holds its giant conventions in Washington every spring, AIPAC does not allow Netanyahu to open a booth in the convention center, or hold press conferences there...
For the last several years, most people, even Arabs, have been skeptical about the pipeline to Haifa, since they cannot face the reality of an Iraq partition. However, Kurds are not Arabs.
Shiite oil in the south will continue to go through terminals in the Basra area. This will hep provide cover for the northern pipeline to Israel.
Egypt also has a pipeline from Iraq. It also goes through Jordan, but it does not end in Haifa. The Jordanians and Israelis will close that pipeline when the new pipeline to Haifa is complete. This will increase Israeli power over Egypt.
Eventually the American public will learn about the Haifa pipeline. The U.S. government will tell the peasants, “This is the safest way to get oil to the Mediterranean,” and the American peasantry will accept it.
At first the Israelis will buy Kurdish crude, and will eventually own it. Here’s how… Israel will pay for Kurdish crude by extending credit, which will make the Barzani clan fabulously wealthy. This will also allow the Kurds as a whole to enjoy a brief period of prosperity. In this way, Kurds will become addicted to the pipeline. Soon the Israeli debt load will pile up, and the Israelis will “reschedule” their loans (credits) to the Kurds. That is, the Israelis will forgive some of the debt in exchange for greater control of the Kurdish crude. After that, the Israelis will repeat the cycle, extending more credit (debt) to the Kurds each time, until the Israelis have it all.
International bankers control mankind by addicting mankind to debt. Their “credits” are like heroin. Loans give you a “high,” but you soon become addicted, and a slave. You will do anything, and kill anyone, to get another “fix.” With each “fix” you become more enslaved.
The Kirkuk-to-Haifa pipeline will have to cross Jordan, which won’t be a problem, since Jordan has long cooperated with Israel, and will get hefty transit fees, as I noted above. Amman, the capitol, is already a second Tel Aviv. Mossad has a huge office at the Amman airport. When NGOs and humanitarian organizations want to send aid to Iraq, most aircraft must go through Amman. This allows Israel's Mossad to log everything. After Israel finished raping Lebanon in 2006, all aircraft to Beirut had to detour to Amman for a Mossad inspection. This is still largely the case.
The Kirkuk oil fields contain perhaps 40 percent of Iraq’s oil. This will quadruple Israel’s power in the region. The Israelis will become completely self-sufficient for oil supplies, and will have enough excess to sell to Europe. They will buy oil cheap from the Kurds, and sell it high to Europe. This will increase Israel's power over Europe.
At first, Israel will offer Kurdish oil at a discount, in order to help Europe adjust to its new master. Then Israel will start to squeeze Europe, wringing more and more concessions from them...
Abdul-Alhazred | Sat, 2007-10-20 22:52