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SAUDI-US RELATIONS INFORMATION SERVICE

THURSDAY, JULY 8, 2004                                                                        ITEM OF INTEREST
A Combustible Mix: Politics, Terror, Oil and the Future of the U.S.-Saudi Relationship
Remarks on the U.S.-Saudi Relationship by Thomas W. Lippman

 
EDITOR'S NOTE:

The following item of interest includes a transcript of remarks made by Mr. Lippman in June at the Center for American Progress panel on "A Combustible Mix:  Politics, Terror, Oil and the Future of the U.S.-Saudi Relationship."  It is followed by a transcript of an online discussion from The Washington Post in which Mr. Lippman answered questions about the U.S.-Saudi relationship on June 14, 2004.

 
A Combustible Mix: Politics, Terror, Oil and the Future of the U.S.-Saudi Relationship
Remarks on the U.S.-Saudi Relationship by Thomas W. Lippman

Thomas W. Lippman :  Good morning ladies and gentlemen.  Thanks for being here.  

I�ve been quite taken aback by the targeting of Americans and other Westerners in the recent series of attacks in Saudi Arabia, and I know that everyone�s interested in what�s going on over there.  But, it�s important, I think, to put it in context, to understand where we are, to look at how we got here as Gayle said. What I want to stress is that the relationship between the United States and Saudi Arabia precedes oil, goes far beyond oil and has covered, has applied to, has involved more areas of human endeavor than is commonly realized.  The first Americans to go into what is now Saudi Arabia were Christian missionary doctors from the Reform Church, who were invited into the heartland of the Arabian Peninsula by Saudi Arabia�s founding king back in the 1910s and 1920s.  They brought the first modern medical care to a part of the world that desperately needed it.  

"..What I want 
to stress is that 
the relationship 
between the 
United States and 
Saudi Arabia 
precedes oil, 
goes far beyond 
oil.." 

You all know the story of the oil business.  The oil business became a sort of very large emblem of the kind of mutual need that locked the United States and Saudi Arabia into a series of very close relationships over 70 years.  When the Americans began going into the kingdom to find, produce and export oil, they ran into the same tension you see today from the desire or the determination of many people in the Saudi population to keep infidels and foreign influences out of the sacred soil of Islam.  This was mashed against or running up against the country�s indisputable need to bring in Western or external technology, expertise and capital in order to develop the country.  Prince Sultan and Crown Prince Abdullah. (Photo by the Saudi Press Agency)

I would say what defines the task of the king and the ruling family of Saudi Arabia is managing that tension.  That tension has always existed, ebbed and flowed.  Other than today, I would probably say it was greatest or in the period when Ambassador Freeman was there, which he can tell you about later, during Desert Storm.  Even now, it becomes the task of the ruling family to balance the country�s continuing need for external intervention with the desire to exclude it for social, religious and traditional reasons. 

Beginning with the time of the oil, when Americans involve themselves in it, they involved themselves in a country that basically brought very little to the table in terms of technology or modernization half the time.  Through no fault of their own, the people of the Arabian Peninsula were extremely poor and pretty much isolated from the Industrial Revolution and technological developments.  In the late 1930s when Americans set up the oil camp in Dhahran, among the things Saudi Arabia lacked were paved roads, telephones, aircraft, electricity, running water, public transportation, radio and television, air conditioning � otherwise, they were totally up to date -- also, except for education.  Other than some access to Koranic schools, the Saudis really lacked general education.  Part of what the Americans did in Saudi Arabia over many, many years was to begin to fill in the gaps in Saudi Arabian modernization.  I think it�s fair to say that other than religion, there�s no aspect of contemporary life in Saudi Arabia that hasn�t been affected or influenced by American input in one way or another over the past 70 years. 

I�ll give you just a few examples.  Americans wrote the charter creating the Saudi Arabian Monetary Agency, which is today one of the most respected and influential banks in the developing world.  Americans were also instrumental in the introduction of paper money into Saudi Arabia, which they didn�t have until the 1950s.  Americans were deeply involved in the modernization and mechanization of Saudi agriculture.  We don�t normally associate agriculture with Saudi Arabia, but the fact is that it is a huge business.  Agribusiness is one of the largest components of the Saudi economy other than oil.  It was Americans who brought pumped irrigation, modern techniques of animal husbandry, and crop management into Saudi Arabia.  

..a few examples.. Americans wrote the charter creating the Saudi Arabian Monetary Agency.. instrumental in the introduction of paper money..  deeply involved in modernization of Saudi agriculture.. staffing the national airline.. the basic techniques of managing a modern government.. 

Americans created and for many years maintained, staffed and managed the national airline.  For 30 years, TWA had employees seconded directly into Saudi Arabian airlines, living in Jeddah, and flying, maintaining, and staffing the national airline. -- Saudi Arabian Airlines B-747 at Dulles International Airport (Photo: Ryan & Associates)

Americans created and for many years maintained, staffed and managed the national airline.  For 30 years, TWA had employees seconded directly into Saudi Arabian airlines, living in Jeddah, and flying, maintaining, and staffing the national airline.  One of the most interesting interviews I had in preparing the book [Inside the Mirage] was with the guy, an American, who was the true scheduler for Saudi Arabian airlines back in the 1970s -- balancing everybody�s language capabilities, different capabilities as flyers, religious preferences, men versus women -- all those things he was trying to manage and schedule in his airline.  The Ford Foundation had its team in Saudi Arabia throughout the 1960s trying with limited success to instruct the Saudis in basic techniques of managing a modern government. 

This of course doesn�t even begin to touch on the defense relationship, which can be traced all the way back to 1945 and the beginnings of the military training program.  Even today, as I�m sure most of you know, there�s a substantial American team in Saudi Arabia training and modernizing the Saudi Arabian National Guard, introducing new weapons over there.  Finally, I would just remind everybody that for 25 years, beginning in 1975 and running through the end of the Clinton Administration, the two countries participated in the Saudi-U.S. Joint Economic Commission, which was an effort financed by the Saudis but staffed by the Americans in which Americans were seconded by the U.S. government, American civil servants, who went directly to Saudi Arabia and worked side-by-side with their counterparts in Saudi Arabian government offices instructing the Saudis, improving their skills in such basic techniques of government as compiling a consumer price index and operating a customs service.  The joint commission ended at the end of the Clinton Administration for reasons that have never been entirely clear.  No public announcement was ever made.  It just stopped. 

Then, of course, there is the security relationship.  Beyond all that, there has been a very deep and wide-ranging economic relationship in which some of the great, modern mercantile fortunes of people in Saudi Arabia were made through business partnerships with American corporations. 

I�ll just stop there and say that in many ways, I believe this relationship has been mutually beneficial to both societies, despite sometimes their mutual aversion, which they have overcome to their benefit.  This relationship, we should not lightly jettison.


An on-line discussion at WashingtonPost.com - Reprinted with permission

Outlook: The Fall of the House of Saud?
Thomas W. Lippman
Author, former Washington Post Staff Writer
Monday, June 14, 2004

Do the recent deadly terrorist attacks in Saudi Arabia suggest that the House of Saud's grip on power may be weakening?

In a word, No, writes Thomas W. Lippman in his article The Crisis Within.  Lippman, the author of Inside the Mirage: America's Fragile Partnership with Saudi Arabia,  has just returned from the kingdom. He argues that Saudi security forces will win their battles with the terrorists, who are linked to al Qaeda and sympathetic to fellow Saudi Osama bin Laden. Lippman notes that the greater challenge before the monarchy is to satisfy the aspirations of the majority -- and maintain its security and economic ties with the United States -- without further inciting the religious extremists whose rhetoric gives cover to the terrorists.

Lippman, a former Washington Post correspondent in the Middle East and an adjunct scholar at the Middle East Institute, was online Monday, June 14 at 4 p.m. ET, to discuss his article.


Washington, D.C.: There seemed to be a parallel between Iran in 1979 and Saudi Arabia now. Should all U.S. military and civilian personnel leave Saudi Arabia?

Thomas W. Lippman: One point I tried to make in my article was that there is much less in common between Iran in 1978-79 and Saudi Arabia today that might appear. The Shah of Iran was perceived by the Iranians to be an illegitimate ruler -- a usurper, installed on his throne by the CIA -- and a secularist who valued Iran's pre-Muslim Persian culture more than he valued Islam. None of those criticisms applies to the House of Saud.

As for departing the Kingdom, it might not be a bad idea for those Americans who can do so to spend the summer elsewhere and see what happens in the fall, but no mass exodus is called for.

McLean, Va.: Recently, the Chairman of ExxonMobil stated that it is "inevitable" that the U.S. and the rest of the world "will increasingly need energy from the Middle East." If what you say is correct about the Fall of the House of Saud, shouldn't the U.S. be doing everything it can to reduce its dependence on Persian Gulf oil?

Thomas W. Lippman: The United States is not dependent on "Middle East oil" per se. The United States -- like Japan, Germany, and other industrialized countries -- is dependent on imported oil. It doesn't matter where it comes from. Much of the U.S. supply comes from Venezuela, Mexico and Nigeria, for example. There is a single worldwide oil market; the source of any particular barrel is irrelevant. In my opinion, if the House of Saud were overthrown by extremist zealots of the Taliban variety, that new government would still have to sell as much oil into the world market as possible because it would have no other source of money to sustain the country. Of course the Middle East is increasingly important as the source of global supply, but it's misleading to characterize the United States as especially dependent on that part of the world.

Arlington, Va.: Is there any chance the Saudis could open up their society through free elections and still remain in power? Answer = No.

Thomas W. Lippman: You may be right, but how do you know?

Rancho Palos Verdes, Calif.: It might make some feel better to hear the Saudis have forces searching for bin Laden in Pakistan and Afghanistan. Is that the case? Are they receiving intelligence on his whereabouts from bin Laden family members?

Thomas W. Lippman: I am not aware that any Saudi forces are deployed outside the Kingdom. I have been to Saudi Arabia twice since 9/11, and I have not heard anyone suggest that the Saudis should undertake such a mission. It's an interesting idea.

Hanover, Pa.: The United States has been close friends of the Saudi family for many years. I have difficulty determining what, if anything, this friendship has gained us outside of the oil availability. Are there other advantages that are not as obvious as the oil access that I'm missing?

Thomas W. Lippman: The Saudis have actually done a lot for the United States over the past 40-50 years. During the Cold War, Saudi Arabia financed covert U.S. campaigns against pro-communist forces and governments in Nicaragua, Angola and especially Afghanistan. Whether sending funds to the Contras was a good idea or not is open to debate, but the Saudis were helpful. During the 1950s and 1960s, the era of pro-Moscow Arab socialist governments in key countries, the Saudis were an important obstacle to the spread of Moscow's interest in a vital region.

Economically, the Saudis joined the United States in a joint economic commission that worked for 25 years to ensure that as many of our oil dollars as possible were recycled into the U.S. economy. As purchasers of military equipment, electrical generating facilities, aircraft and other big-ticket items, the Saudis have been and remain important customers for U.S. companies.

Charlotte, N.C.: Is the House of Saud ever going to start making noticeable reforms like allowing women to drive, etc.?

Thomas W. Lippman: If you read my article, you will see that this process is already under way. I must say, however, that in many visits to Saudi Arabia going back to 1976, I have never met a Saudi woman who gave a damn about the right to drive; it matters more to us than to them. What is going to force a change in this policy is economics -- the country can't afford to keep importing men from Pakistan or wherever to work as chauffeurs for its women.

Albuquerque, N.M.: If the Saudis were to lose power and a revolution to take place successfully, who is most likely to assume power once the dust settles?

Thomas W. Lippman: This is very hard to forecast. Most analysts that I have talked to on my visits to the kingdom and here in the United States say the most likely new rulers would be some Taliban-style religious dictator who would do whatever was possible to purge the country of Western influences -- out would go McDonald's, Pizza Hut and English-language instruction in the schools, for example. Internet access would be restricted. Education of women would probably be cut off. The country's Shiite minority would be persecuted. Direct commercial dealings with American companies would be shut down. But, Saudi Arabia is not Afghanistan -- its people are much better educated -- especially its women -- and they have had much greater access to the outside world. Saudi Arabia is not so easy to isolate as was Afghanistan, especially if there is a democratic, secular Iraq just over the border. So, I don't know how long the Saudis would tolerate the kind of religious totalitarianism represented by bin Laden and the Taliban.

Silver Spring, Md.: You describe extremist adherents to the Wahhabi sect in Saudi Arabia as "brown shirts," and I believe you described their actions as "fascist-like." Would you go so far as to use the same descriptors for Jewish extremists in Israel?

Thomas W. Lippman: If they shoot innocent people and blow up houses of worship, why not?

Charleston, S.C.: Catch 22?

If poverty results in Islamic youth being drawn to terrorism, what will happen after an alternative to oil is found, and these Middle Eastern countries lose the resource that provided for their people? We'll have an even worse situation on our hands.

Thomas W. Lippman: I question your premise. It's not necessarily true that Muslim terrorism arises from poverty. In the 1930s, the Muslim Brotherhood developed in Egypt among schoolteachers and civil servants, not the peasants. Note that the Saudis who participated in the 9/11 hijackings were not "poor" in the usual Third World sense; Mohamed Atta, for example, had a good technical education in Germany and had many career opportunities there.

Harrisburg, Pa.: How does the Saudi government, as well as Saudi dissidents, view their relationship with Iran and the role of their country in relation to Iran? Now that Iran is developing nuclear weapons and no longer has to worry about Iraq, is there concern that Iran's increasing dominance may pose threats to Saudi stability?

Thomas W. Lippman: Very good question, with no simple answers.

The Saudis and the Iranians cooperate, politely if not warmly, on many issues of importance to both countries, such as OPEC oil quotas and the annual pilgrimage to Mecca. On the other hand, Iran is a Shiite power that has challenged Saudi Arabia's position as leader of the Muslim world, and there have been serious tensions, especially in the 1980s when Saudi Arabia supported Iraq in its war with Iran. Acquisition of nuclear weapons by Iran would be a source of deep concern in Saudi Arabia -- even to the point that some Saudis believe the country would seek to acquire its own nuclear arsenal to balance the Iranian threat.

Arlington, Va.: Thus far, you have given extensive praise for the Saudi government. As you may be aware, despite a multi-million dollar advertisement campaign in the U.S., public opinion of the country and its rulers is extremely low. Can you speak for a moment about why you think that is, and what justifications American citizens might have for mistrusting that nation and its citizens?

Thomas W. Lippman: I don't believe it's correct that I have given "extensive praise" to the Saudi government. I have described its rulers as ruthless and its citizenry as restive. And, I have said that the impetus for reform, such as it is, comes most from economic considerations, not moral suasion or an embrace of Western values.

As for why Americans mistrust Saudi Arabia, I don't think we need look beyond 9/11 and its aftermath for the answer to that.

Bedford, N.Y.: Is there resentment among ordinary Saudis at the often lavish lifestyle of the royal family?

Thomas W. Lippman: Many people say there is, and it wouldn't be surprising, but it's very difficult for an outsider to get a good sense of what "ordinary Saudis" are really thinking.

Silver Spring, Md.: My parents are currently living in Saudi, where my father works for a foreign petrochemical company. They have been receiving mixed messages on leaving -- the media reports call for Americans to leave, the Ambassador visits their compound and says he was misquoted, and Americans should stay. I can't help but feel their lives are unnecessarily being risked, to keep oil prices down here. So far, they haven't received "permission" from their company to leave. Any thoughts?

Thomas W. Lippman: It's hard to see how anyone's life is being risked to keep oil prices down when they're at an all-time high. There is no doubt that Americans and other westerners in Saudi Arabia are in more danger than ever in the past, but keep it in proportion -- last month I wandered the streets of Riyadh and the old souk in Jeddah with no problems, and the atmosphere was quite tranquil. Each family is going to have to make its own decision.

Atlanta, Ga.: Will a larger political role for women in Saudi society impact the curriculum of the schools in the near future?

Thomas W. Lippman: Probably, but I don't know for sure -- I have never been able to get a good handle on what really happens in ordinary Saudi classrooms. More and more women are educated now, and they naturally want the best for their children; but, sometimes that results in circumventing the school system rather than trying to reform it. In the Eastern Province around the oil fields, for example, quite a few women send their children to school in Bahrain, where the environment is less oppressive. And, there is a growing number of private schools in Saudi Arabia.

Raleigh, N.C.: Among the Saudi Arabian general population, have you noticed increasing hostility toward Americans, Westerners or foreigners in general?

Thomas W. Lippman: Hard not to notice when it's in the newspapers and on TV every day. But hostility is not the same as violence. Most Saudis are not violent people.

Herndon, Va.: Mr. Lippman: With all due respect, I remember the "experts" before the collapse of the Soviet Union saying "well, some time in the distant future, there'll be major changes, but not right away." Then, WHAM, and the whole system collapsed. Why is the House of Saud any different?

Thomas W. Lippman: Maybe it's not. But the Soviet system was -- we learned afterward -- a sham, a hollow power with a bankrupt ideology. I'm not convinced that Saudi Arabia is in the same category.

Victoria, B.C., Canada: What is your take on the recent poll of Saudis which showed massive majority support and sympathy for the ideas of bin Laden? How can the House of Saud prevail over the terrorists when the terrorists have the support of the mass of people? The poll was taken after the bombings in Riyadh.

Thomas W. Lippman: Very good question, and very difficult to answer. Here's one way to think about it: On my recent visit to Saudi Arabia, and on all previous visits over more than 25 years, I have been graciously and hospitably received by Saudis who have welcomed me into their homes and shared their food and their thoughts with me. Always, they have stressed that they like Americans and admire what the United States has stood for -- except .. and then we begin to hear the other side. As Arabs the Saudis have resented what they regard as undiscriminating and unfair U.S. support for Israel, no matter what. They have chafed at the global market power and global military power of the United States. They deeply resented the presence of 500,000 U.S. troops in their country during Desert Storm. They are unhappy that it is now so difficult to obtain visas to the United States, even to visit their own property. And, they can't stand what the United States is doing in Iraq. Add it all up, and you can see how a radical such as bin Laden might exert a certain crude appeal -- much as Hitler did during the late 1920s. Let's hope the Saudis can maintain a distinction between anger at U.S. policies and embracing the vision of bin Laden.

Alexandria, Va.: We constantly hear about either the monarchy or the terrorists in Saudi Arabia. What about those in the middle, the all important moderate, middle class? Do they exist, and if so what do you see as their responsibility both in Saudi and the rest of the Muslim world?

Thomas W. Lippman: There is indeed a large, mostly moderate, nonviolent middle class in Saudi Arabia: business people, civil servants, bankers, agribusiness executives, and media people. That's the main reason why I believe that the population does not want the Taliban-style regime that would be imposed by bin Laden and his supporters. But, keep in mind that the Saudis are deeply religious Muslims, and Islam is the foundation of the state, which is how they want it. There's not much constituency for secular democracy.

Harrisburg, Pa.: In this political climate, there are discussions about the ties of the Bush family to the Saudi government. Are you aware of these ties and, if so, what is the truth to these ties?

Thomas W. Lippman: This question comes up all the time. Apparently it's one of the main subjects of Michael Moore's movie Fahrenheit 9/11. It was the subject of an entire book recently, House of Bush House of Saud. It's not surprising that a family that made its money in the oil business in Texas would be close to the Saudis; I'm not aware that any untoward relationship has been uncovered.

Las Vegas, Nev.: Is the House of Saud withdrawing support of religiously extreme schools at home and abroad?

Thomas W. Lippman: This is a very complicated question. At home, the Saudis say they are cleaning up the school curriculum and purging their textbooks of inflammatory material; I have no direct knowledge of whether that is true.

Overseas, it is a fact that Saudi donations to Muslim schools and charities are now much more tightly controlled, and the purpose of the funds is much more closely monitored, not just by the Saudis but by a joint U.S.-Saudi team. The problem as I understand it is that a lot of money controlled by Saudis is not in Saudi Arabia -- it's in Singapore or the Cayman Islands or wherever -- and thus not easy to restrain.

Grand Rapids, Mich.: What are the chances that Saudi Arabia will turn into something similar to Iran? It seems that this administration embraces the monarchy more any previous one in a way that is reminiscent of our relations with the Shah. Is there a sense that the population of Saudi Arabia is frustrated with the monarchy and their hold on power?

Thomas W. Lippman: Let me try this one more time. Go to the blackboard and write 100 times, Saudi Arabia is not Iran. They straddle the Persian Gulf and produce oil; otherwise, they have little in common. Iran is a Shiite state; the Saudis are Sunnis. The Shah of Iran was widely perceived by his people to be an illegitimate ruler -- an usurper installed on his throne by the CIA and a virtual pagan in religious affairs. The obscenely lavish international party he threw at Persepolis, which appalled the world with its extravagance, convinced Iranians that he valued pre-Islamic, Persian culture more than he valued Islam. And, he was a good friend to Israel. None of those considerations applies to the House of Saud. It can't be stated as a fact that the Saudi majority is "frustrated with the monarch and their hold on power." Even the most vocal dissidents in the Kingdom are calling for reform within the system, not abolition of the system.

Silver Spring, Md.: I have heard that there is a strong sentiment among the "average Saudi" that they would rather not have foreign workers present in their country. That perhaps this would help with their problems with unemployment. Does this lead to latent acceptance of attacks against foreigners by the average Saudi citizen?

Thomas W. Lippman: The presence of foreign workers has been an issue in Saudi Arabia for almost 70 years. Here's one way to think about it: Imagine that all the Mexicans and Mexican-Americans in California left the state overnight. Who would do all the work they do? Saudi Arabia is similarly dependent on foreign workers. Of course, you are correct that the Saudis would be better off if they had fewer foreign workers and did more of the jobs themselves -- everyone in the Kingdom acknowledges this -- but, there is a disconnect between the Saudi labor force and the job market. Some jobs the Saudis just won't do -- cleaning hotel rooms, for example, or heavy construction out in that heat. And, some jobs they would do, they aren't qualified to do, especially if the jobs require foreign languages, engineering skills or computer literacy.

Oxnard, Calif.: Are we better off to continue to embrace the "devil we know" rather than hope for their overthrow and face perhaps a much more fervently anti-American leadership in Saudi Arabia?

Thomas W. Lippman: The phrasing of your question is intriguing. You say we might fact "a much more fervently anti-American leadership in Saudi Arabia." Are you implying, or do you believe, that the current leadership is anti-American? If so, I believe you are mistaken. The main reason the House of Saud is under attack by Islamic terrorists is that it is pro-American.

Washington, D.C.: It is often asserted that if real direct elections were held in Saudi Arabia (or any other authoritarian Middle East county) the Islamic extremists would win.

If there was an election for the leader Saudi Arabia today, would the winners be more hostile to the United States? If so, how much more, are we talking a level of hostility similar to that found in Iran or even in Afghanistan under the Taliban (terrorist-training camps and sanctuary)?

Thomas W. Lippman: The example I have heard most often is Algeria, where an Islamist slate appeared to win elections in 1994. I think you would get a government that would be strongly anti-American in rhetoric but less so in practice because of the deep, durable economic ties between the two countries. I just don't believe that the people of Saudi Arabia want a Taliban-style regime.


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ABOUT THE AUTHOR

Photo credit:  Interdisciplinary Humanities Center, University of California, Santa BarbaraThomas W. Lippman, a former Washington Post correspondent in the Middle East, is an adjunct scholar at the Middle East Institute and author of Inside the Mirage: America's Fragile Partnership with Saudi Arabia (Westview Press).  He has recently returned from a week-long visit to the kingdom.

 

 


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