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tow k & a 4 t feline a et increased tanker fleet by purchase or charter. The net result is that, while Onassis is to charge U. S. Maritime prices, current shipping rates average $.86 per barrel below the Maritime rates; thus it will be seen that, while paying $.03 per barréi to Saudi Arabia, Onassis has a prospective take of $.83 per barrel over and above current operating profits. Present shipping rates from the Persian Gulf to New York are reportedly less than those from Venezuela to New York. . In return for this agreement, Onassis contracted to train & limited number of Saudi Arabian seamen each year. He further agreed to deliver 50,000 tons of o1l per year free to any place designated by the Seudi Arabian Government. The agreement, according to Aramco officials, is a direct contravention to the terms of the Aramco-Arabian agreement which involves both production and marketing. In a letter dated iste in January, 1954, aramco was instructed by El Suleiman to put its remifications into effect immediately and report progress to the Saudi Arabian Government. Under date of February 8, 1954, Aramco completely rejected the instructions received from the Saudi Arabian Government and to date has received no reply to its letter. On April 9, 1954, the U. S. Ambassador was informed that the agreement was in effect. In communications with the State Department, he was instructed to seek an interview with the King and make positive protest over the restrictions on U. S. tankers. It was also suggested that he might want to discuss the related problems involving charter tankers and those of other nations. The Ambassador, who was at the meeting, aetated that he was scheduled to visit the King the following day, April 30, end was of the mind that his approach on this matter should be to deal with the whole subject end not only a discussion of Navy tankers. Otherwise, Saudi Arabia might conclude that the other restrictions are being accepted. Despite the very serious import of this agreement from an economic, and possibly from & political, standpoint, the military aspects may be even more vital, although they cannot be estimated at the present time. The diversion of such o11 to Soviet bloc interests, either for their use or for resale with the ruble as the monetary unit, would completely offset world trade, as well as increase the possibility of precipitating a conflict.