Egypt faces possible $2 billion aid cut over peace move
Beir ut reports Arab officials warn Cairo that a Sadat treaty with Israel could trigger a collective Arab cutoff of aid exceeding $2 billion. Kuwait and Saudi Arabia pledge possible sanctions, while Arab News praises Carter’s Palestinian concerns and North Yemen accuses the plan of backing Zionist rule. Dr George Habash urges oil as political leverage amid rising regional tensions.
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Carter did all he could in Iran praise from Church
Frank Church chairman of the Senate Foreign Relations Committee defends President Carter amid the Iran crisis. He lauds Carters efforts to secure American departures from Iran and to advance peace in Egypt and Israel, while warning US readiness to use force if needed.
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Iran oil cut speeds up expected shortage
Washington United Press International reports that Iran's oil disruption hastens anticipated shortages in the United States and Western markets. Heritage Foundation analyst James Phillips says the crisis removes cushion from global oil supplies, narrowing margins and pushing supply demand dynamics toward mid to late 1980s levels.
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Energy prices spark fear of deep recession in US
Senator Henry Jackson warned rising oil costs could trigger a deep recession as spillover effects hit many products. He urged a broad energy review with James Schlesinger testifying, and predicted one dollar gasoline within a year amid Middle East tensions. McGovern called for Schlesinger's firing over the policy.
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Gasahol to go on sale in Mexico
Notimex reports a new gasoline with high alcohol content will be sold in Mexico. The Mexican Petroleum Institute and Texas Oil Co. of San Antonio have tested the mix for a year. The fuel is described as emitting less air pollution than other gasolines.
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