April 1989, Page 13

American Business Abroad

A US-Arab Dialogue

Following are excerpts of remarks at a March 2 luncheon in Washington, DC of the US-Arab National Chamber of Commerce by Senate Minority Leader Robert Dole (R-KS) and Secretary General Abdallah Dabbagh of the Council of Saudi Chambers of Commerce and Industry

—Senator Dole's Prepared Remarks

In the Persian Gulf in the Middle East some of us have said ... when people were trying to pull us out of the Persian Gulf, that we have an interest in that part of the world. We have an interest of such a magnitude that President Reagan decided it was worth the cost and risk of a major American naval presence to insure the free navigation of the Gulf, which we've had for 40 some years.

I think it was a wise and an effective use of American power and I think it paid off. It worked, and I congratulate President Reagan and the members of Congress ... who stood with the President, who didn't cut and run at the first hint we might become involved somewhere that far away.

Because of what we did, we now have a shaky peace between Iran and Iraq and the end of the tanker war. And because of what we did, America is strong in that region. Equally important, we are seen as being more credible. I think there are some countries in the world that wonder if we have the will, if we have the commitment. I think in this case we demonstrated to a lot of countries—and a large majority of the American people supported what President Reagan did—that our word was good, that we were credible, we can be relied upon.

Now we can't squander this opportunity, that's the point. I think we have to continue to maintain cooperative security and political relationships with our allies and friends in the region. Like it or not in this day and age, that includes helping our friends meet their legitimate defense needs. And I have a hard time figuring out how it is in the American interest to turn our backs on responsible friends who want, not a handout, but to spend hundreds of millions, and in the long run, billions of dollars on military equipment. But I've had a lot of meetings in my office where we've discussed this.

Whenever there's a sale made, it seems like they congregate. Or, it seems when sales are proposed to an Arab nation, there's always a meeting in my office. And I'm very willing to host those meetings. The Secretary of State comes and a number of senators come who have a little different interest. So it seems to me we're going to have to make a choice right up front.

I visited just recently in my office with the Saudi Ambassador and we talked about arms sales. We know what happens in Saudi Arabia and other countries when we say no. They go somewhere else. Why not?

They've got to defend themselves, and I'm not saying we rubber stamp every proposal by the administration. I'm not saying we don't listen to others who have legitimate concerns. I don't say we end all conditionalities. I think it's important to put in certain conditions. But I am saying that we must start looking at these issues in their full context and examine all of the ramifications and then make logical decisions based on the real American interests.

It seems to me that when we make an arms sale to some country, they're going to come back to us for spare parts, whatever it is, maybe for future sales. That gives us an interest. That also gives us, I don't know if you call it leverage, but at least they're looking to us and they're working with us to make certain that there isn't a violation of any condition attached to the sale, or anything else.

I think if we do this we can continue to be a regional player, and we can better advance our own interests. I'm not here representing all the military arms sellers in America, or those who make airplanes, or anyone else. But I'm suggesting that we don't want a short-sighted view. We want a logical view. I think it's fair to say I've discussed this with Jewish groups too. And I think they are seeing the need to make a little different approach to arms sales. I must say I'm happy to see Arab Americans and Jewish Americans having a dialogue in some areas. So I think there is a change of attitude.

Now, to mention one other thing, chemical weapons. I think one of the first priorities is to stop the deadly spread of chemical weapons in the region. Because if lunatics like Qaddafi get their hands on large stocks of chemical weapons, and master the technique of delivering those weapons at long distances there will be a whole new ball game, not only for American security interests but more generally for peace and stability in the region. It is time for us to say to these nations that seek to acquire or contemplate the use of chemical weapons that we're not going to stand for it ... It's time to say to those private companies who think more of the almighty dollar, the deutsche mark, or yen than they do about the potential victims in the war of chemical weapons, that we're not going to stand for it. America will not stand for it. Together with Senator Garn and Senator Hyde and others from both sides of the aisle, I have introduced legislation that would shut off and shut out of the American market any company that knowingly helps the likes of Qaddafi acquire chemical weapon capability.

Senator Dole's Answers to Questions

[In answer to whether he had stated on Radio Israel that changing sentiment in the US could make it difficult for Congress to continue aid to Israel at current high levels]

I made that statement in New York to a Jewish audience last Sunday. I have the reputation of being fairly honest and candid. I told that audience precisely what I was hearing, that I heard it from colleagues ... I think some in that audience are hearing the same thing. I think there are winds of change blowing in the Mid East. I think we have to take a new look. Is Arafat for real? I don't know. I mean it's one thing to say something. We'd like to see something done. Maybe help get our hostages home. Something of that kind. But he's made the statement that everybody said he had to make. That started the dialogue. Secretary Baker said we're going to continue the dialogue...

I do know a lot of members of congress of both parties who would like to figure out some way to have peace in the Middle East. Lasting peace. Real peace. We don't have a blueprint, but we all search for the same thing. And I just repeated what I felt to be true in my state of Kansas and other places I visit.

[In answer to a question whether, in view of statements made by Yasser Arafat and the initiation of a PLO-US dialogue, he would favor the reopening of the Palestine information office in Washington, DC)

I think, just as I said, all of us need to reassess the position ... of six months or a year ago. Now ... whether it's enough to say ... all is forgiven, let's open their office up, I don't know. But we ought to consider what we can do.

Secretary General Dabbagh's Response to Senator Dole

The most important aspect of Senator Dole's remarks is that expressed "interest." That's really the crux of it. I think it was a British statesman who said there are no such things as permanent friendships, only permanent interests. I believe that we in the Arab world and you here in the United States have such a commonality of interests, and share so many values, that they should be the bases of our relationship in all of its aspects whether economic, political or social. I think the US policy toward the area should be built on this premise. I think we are overdue right now for a change in American policy toward that area, in the political context in particular. There have been many changes that have been brought on board in the last few years. I think the time and the chances for peace are so ripe right now.

The Palestinians are waging peace today and this should be realized. The young kids in the occupied territories who are throwing stones are telling you right now "that enough is enough." That 20 years of occupation is too much. That "We are ready to die. We are going to throw stones and take bullets, and we will continue to do so until we get our freedom."

The mujahedeen of Afghanistan have won. The Palestinians, I can assure you, will win too, because they are determined to win. We hope we share your support here. The whole world is changing. There is a lot of change occurring in public opinion. Unfortunately, this country has not transferred this yet into political action, but there is a change and we should capitalize on that. I can see there's a change even within the Jewish community in this country. This country is grounded on values of justice and freedom and self determination. We would like you to transfer this realization into action today.

I think the senator has presented some positive elements in his speech in terms of the defense requirements of some Arab countries. That was very encouraging, to hear that there is a more rational outlook today. In the case of the Tornado purchase, we came first to you. We asked you for planes. You said no. We went to the British and got a good deal. In the process we are going to spend 30 billion dollars with British defense industries. And we're going to get planes with more offensive capabilities than the defensive planes we originally asked for.

Arab-American trade relations are always good. But I think Americans have been losing their competitive edge in the last few years to the Japanese, the Koreans and to the EEC countries. I think American business, with the help of the US government, should map out a new strategy, a new policy, an aggressive one, to recapture the market. You are losing market shares. We would like to buy all your products. American technology is still one of the best. But I think what is needed here is a more aggressive policy and more aggressive marketing.

Finally, I would like to say of the new US-Arab Chamber of Commerce, that I think it's going to serve as a good vehicle for more and stronger relationships in the economic field.