Kenneth C. Crowe
Kenneth Crowe

Fellowship Title:

The Dichotomy of Saudi Arabia

Kenneth Crowe
May 26, 1976

Fellowship Year

The views expressed by the author in this newsletter are not necessarily the views of the Foundation.

(THE CONTEXT: Foreign investment in the United States is burgeoning, while public consciousness of this perennial phenomenon has been raised by the prospect of Middle Eastern oil money buying large pieces of American corporations and real estate. The traditional investors in the U.S. have been the Europeans, but in recent years, nouveau investors…the Japanese, the Arabs, the Iranians…have appeared on the American horizon. An understanding of the impact of foreign money and foreign ownership is obscured by a lack of knowledge. Saudi Arabian money has been trickling into the States, yet it has the potential of a tidal wave. This article deals with the clogs in the money stream and Saudi attitudes towards investment in the U.S.)

JEDDAH, SAUDI ARABIA — Tarek Bin Laden is the personification of the dichotomy of Saudi Arabia: conservatism and change mingle in his being.

Sitting on a camp chair, snug against the edge of an open shaft — a plunge of four stories — Tarek, with an expression reflecting the seriousness of concentration, watched his Yemeni construction workers pouring a concrete slab for his 18-story, apartment-office building complex just behind the Kandara Palace Hotel. The Yemenis hustled around as employees usually do under the eyes of their boss.

Tarek turned to me with a smile, explaining why he had insisted on talking to me at his construction site: “When they see me, they keep working.”

The setting of our conversation about Saudi investment attitudes was an open-sided, poured-concrete high rise under construction — a scene of jumbled scrap piles, dusty, dirty, dangerous to walk around. Very much like a parallel construction site in the United States. But, the open shaft that Tarek toyed with gaped unprotected and unfenced. And instead of steel-tipped shoes, the Yemenis wore open-toed sandals. So did Tarek. His sandals were white, matching his long, white robe. A red-checked cloth was wrapped loosely around his head in the casual Saudi style.

Tarek is a busy man. His family’s construction company, The Mohamed Bin Laden Organization, is helping to build the new physical infrastructure of the Kingdom of Saudi Arabia — and since the blossoming of the price of oil in October, 1973, Saudi Arabia has been a country under construction. The U.S. Embassy’s Commercial Office in Jeddah reports that the Bin Laden organization has been awarded the bulk of the multi-million dollar street paving and road building contracts in Saudi Arabia.

“I am running the Bin Laden organization in the south,” Tarek said, “seven-thousand workers…a billion Saudi Riyals in jobs.” He pauses to let that sink in — the enormity of it all. “I don’t sleep more than four hours a day…My one year is three years to others.”

At 29, Tarek is one of the oldest of the 54 sons and daughters of the late Mohamed Awad Bin Laden, who built the family business from a small masonary firm he founded in 1936 into a gigantic construction organization. He was killed in a plane crash in 1967.

“I don’t like to invest any money outside Arabia,” Tarek said, “…I believe in one thing. The money that’s not in my country is not my money.” Those words present a clear portrait of the classic conservative economic philosophy of the Middle Eastern Arab: a preference for investing in something he can see and touch. This conservative stance would seem to eliminate the Tarek Bin Ladens of Saudi Arabia from the thrust of foreign investment into the United States.

Tarek Bin Laden, however, demonstrates that he is willing to be the cutting edge of change in some aspects of Saudi life. Pointing down between the wings of his building, he said: “That is going to be the first movie theater in Saudi Arabia…This is my own building. It has a five-story parking garage, the first in Saudi Arabia.” A parking garage and a movie theater in the Red Sea port city of Jeddah, Saudi Arabia! To understand the clanging clash against the culture of the past embodied in this single building…one has to remember that the introduction of television caused riots of protest for religious reasons…or see the goats roaming the streets of Riyadh, the capital, eating castaway trash…or see the sad-eyed jackasses, too worn out to haul water any longer, turned loose to fend for themselves in the streets of Jeddah.

Commercial movie theaters are prohibited in Saudi Arabia, although wealthy merchants and princes have private cinema collections, entire film libraries in some cases. Films, too, are shown at the various embassies for European or American constituencies. “If they don’t allow the theater after I finish, I can rent it to the American Embassy or the French Embassy as a proper place to show their movies,” Tarek said.

Realizing that his parking garage would be a boon to the occupants of his high rise, Tarek has a broader strategy in mind. “When I made this building, everybody thought I was stupid,” Tarek said, “(but) I am thinking more in the future than today. For instance, if General Motors wanted to make a show for 15 days…I’ll rent them the parking garage.”

Three Years’ Rent in Advance

Tarek, who spent his teenage years studying in England and Switzerland, returned to Saudi Arabia in 1967 when he was about 18 to start his own construction business. “I like more the construction than anything else,” he said. This apartment-office building complex was to be his first high rise. Tarek said that he was financing the project from my own pocket. Forty-million Saudi Riyals (about $11-million). If someone else was contracting it, it would cost more.”

The economics of Tarek Bin Laden’s high rise explain the Saudis’ fixation with real estate. Aside from the office and garage space, there will be 150 furnished apartments renting for a minimum of 150 Riyals per day. That works out to a minimum of between $42 and $43 a day — or a gross income of well over $2-million a year. “‘Many people are ready to rent now,” Tarek said. “If I rent the whole building to a company, I can get three years’ rent in advance.”

His isn’t a unique experience. Since the price of oil quadrupled at the end of 1973, hundreds of thousands of foreigners have been pouring into the desert kingdom to do everything from performing drudge work to planning the new Saudi society. The result is a phenomenal land and housing price boom. A small three bedroom house, which the Saudis call a villa, typically rents for $25,000 a year. Three years’ rent in advance. A similar house might sell for a total price of $25,000 in the States…so it is clearly not much of a house.

Fahd Sulaiman’s Vision

A hundred yards away, in his private office at the Kandara Palace Hotel, Fahd A. Sulaiman envisions the development of an international chain of hotels. “We are frankly looking into investing in the U.S.,” Fahd said, “but we are first trying to stabilize our investments in Saudi Arabia.” Fahd is the hotel specialist for the Sulaiman Group of Companies, which is run by the five sons of the late Sheikh Abdullah Al Sulaiman, who served as King Abdul Aziz Ibn Saud’s Finance Minister. In fact, Sheikh Abdullah was his only Minister.

Leonard Mosley, in his book, “Power Play”, describes how in the steaming heat of summer, on Aug. 25, 1933, Lloyd Twitchell, representing Standard Oil of California, “sat at a table in the Jidda branch of the Netherlands Bank and counted out 35,000 (gold) sovereigns one by one under the wary eyes of Abdullah Sulaiman.” This was the opening payment for the first U.S. oil drilling concession in the Middle East — a 30,000 British pound loan, plus 5,000 pounds annual rent for a total of $170,327.50.

“We were the first people to start the hotel business in Saudi Arabia,” Fahd said. “My father built the first hotel, the first proper hotel, the Mecca Bank Misr, 35 or 36 years ago.” As a matter of family pride, he said, the Sulaimans are continuing the hotel building tradition. They already own the Jedda Palace Hotel and the Kandara Palace Hotel (one of the city’s finest) in Jeddah, along with several others in Medina. They are in the process of building three more with a number of Saudi partners in Dharan, Jeddah and Cairo. Pan American World Airways’ subsidiary, the Intercontinental Hotels Corporation, is providing the management and technical expertise for these ventures.

“Two years ago, we looked into investment in New York through Intercontinental,” Fahd said, but “we just dropped it. My elder brother decided against it.”

The move into Cairo will put the Sulaimans into the international class, but Fahd has a broader dream: “I’m trying to talk my brothers into expanding the hotel business. I’m really longing to…The hotel business if studied properly, it cannot be a losing business. It is an international business.”

Fahd, 36, a graduate of the London School of Economics, said: “The reason most Saudis are not investing outside is that there is so much to be made in real estate. There are no taxes. On any piece of land you will get a return.” Fahd said that the unusual phenomenon of a capital shortage within Saudi Arabia for private sector projects can be traced to the land boom. “You say to people: ‘Set un a factory.’ And as long as people are getting a guaranteed return in real estate, they say: ‘Why?”

The Sulaimans, with several decades of business experience behind them, have an organization with the capability of making direct investments in the U.S., but first they are exploiting the opportunities for industrial developments — seeded with low interest government loans — within Saudi Arabia. Each brother has an area of specialty within the family organization. Abdul Aziz Sulaiman is in charge of diversification; Khalid, the head office and real estate; Ahmed, cars (the Datsuns sold through the Sulaimans dominate the Saudi market); Mohamed, agriculture; and Fahd, hotels.

The Sulaiman Group of Companies was established in 1952 as a partnership. From 1952 to 1954, the firm was the sole purveyor for the Saudi government with sales of about $3-million a year. In those days, Saudi Arabia’s oil income hovered around $235-million a year. Now it is about a hundred times higher: $22.5-billion in 1974, for example.

The Sulaimans import cars, trucks and building equipment; they are the main stockholders in a cement company; they own a steel factory; and are in real estate development and agriculture. “Some people like ourselves are going into industrial development because of the encouragement of loans (from the government)…I think the real estate boom has reached a point where it can’t go on. Land has become so expensive, you can’t buy it,” Fahd said.

The Big Money

The oil billions, the really big money, are vested in the Saudi Arabian Monetary Agency, which has a reputation for ultra-conservative investment policies. SAMA has made no direct acquisitions of companies in corporate America — although with a bit of tortured linkage, it can be shown to own a piece of the new UBAF (Union de Banques Arabes et Francaises) Arab American Bank, opening shortly in New York City. The connection: SAMA owns 38 percent of the Riyad Bank Ltd., which in turn holds two percent of UBAF Arab American. The value of this investment is $500,000.

SAMA has well over $1-billion invested in U.S. corporate equities and debt through five major American banks and a New York brokerage firm. The agency, which is Saudi Arabia’s central bank, has managed to keep almost all of its investments secret — although the purchase of a $100-million six-year note from American Telephone & Telegraph by SAMA was announced on July 17, 1975 by AT&T. This was the first time that the capital-hungry telephone company had ever borrowed outside of its domestic money markets. Another $13-billion of SAMA’s surplus funds are invested in U.S. Treasury notes and bank certificates of deposit. SAMA is headed by a graduate of the University of Southern California, Abdulaziz Al Quraishi, and includes among its investment advisors a staff seconded from White, Weld & Co., the New York investment bankers.

With the prospect of billions and billions of more surplus dollars to come, SAMA has created the Saudi International Bank (Al Bank Al Saudi Al Alami Ltd.) in London to serve as a training camp for the nation’s future international money managers. Morgan Guaranty Trust Co., which will manage the new merchant bank, owns 20 percent of Saudi International, whose capital is $25-million. SAMA owns 50 percent, and the balance is split among seven other banks from Saudi Arabia, Japan and Europe. SAMA in its 1975 Annual Report said: “It is expected that this program aimed at enlarging the number of Saudis knowledgeable in international finance will be an important aid to the nation in fulfilling its expanding role in the world economy.”

The Saudi government has indicated that it has no interest in acquiring controlling interests in American corporations. Thus the substantial investments of both the present and the future from this country into the United States are expected to come from the private sector. The key then to the growth of Saudi investment in America lies in the combination of the government’s oil riches flowing into the private pockets of Saudi Arabia; the saturation of investment opportunities within the country; and the opening of channels to investment in the west.

The Unrented Villas

An American economist, living in Jeddah, said, “The money is being moved into the private sector rather rapidly. They are spending far more than can be absorbed. The problem is to whom does it find its way? The spending is reaching the taxi driver, the merchant, the princes and the merchant princes…But the civil servant, the non-com in the Army, the officers? No. We have many friends in the Foreign Ministry who are in private business and spend more time on their private business than their government jobs…”

The economist is convinced that the Saudi land speculating bubble will collapse in a maximum of two years. “We have heard that 20 percent of all villas are unrented,” he said, because of the high prices demanded by the landlords. In a separate interview, a banker said: “The Ministry of Housing did a survey showing that in Riyadh 40 percent of the first class housing is vacant, and in Jeddah 20 percent is vacant.”

The economist, who was interviewed in March, 1976, saw among his own Saudi acquaintances a broadening of their investment perspectives. He cited the example of “a friend who bought 100,000 British pounds at 191 (it was 190.7 as we spoke and as I write this, the pound has fallen to an historic low of 179.1). The point is that he thought to do it. He’s a small merchant. If these people are thinking in those terms, it means the money will be flowing out for investment. Of course they will be reacting, as the lesser informed of the multi-national types who react to what the Wall Street Journal says. They will create waves or ripples responding to the news.”

“To get your hands on the money actually flowing is difficult,” the economist said. “l’m convinced that a lot of the money already has. Raji (a money changer) sends checks for as much as $50-million to Chase.” He claimed to know of at least two such checks, and asked the question he himself couldn’t answer: “For what?”

A member of one of the primary merchant families of Saudi Arabia, in discussing the subject of investment attitudes, said: “From an economic point of view, it’s a bit premature to consider investing in the U.S. In terms of the investment possibilities in Saudi Arabia, you can get 100 percent return minimum. We’re a lot friendlier towards U.S. investments here than the other way around. When the time comes that we exhaust our investment opportunities in Saudi Arabia, we will go into the U.S., but that time has not been reached.”

The Saudi merchant raised the issue of hostility towards Arab investments in the U.S. creating a barrier many Arabs preferred to avoid. I responded with the argument that anyone with a cause in the U.S. feels free to oppose foreign investments, noting that last year, the Pittsburgh-based Copperweld Corporation’s management and unions, along with local politicians, fought against a takeover of Copperweld by Imetal, the French company controlled by the Rothschilds.

“Imetal was very unusual,” the Saudi said. “If you look at International Nickel, or ICI, or BSF, there was no opposition. Why is there opposition to the Arabs? Because of the Zionist elements there.” The controversy of opposition, along with its accompanying publicity, is frequently cited by businessmen in Saudi Arabia and Kuwait as a factor in restraining greater Arab investments in the U.S.

John J. McCloy II, a manager for Brown Brothers Harriman & Co., the private bankers on Wall Street, put the issue succinctly when he said: “They say, look fellows every time we think about something, you come up and shake your finger. They’ve said, ‘You give us the parameters, which industries you want us to touch. Nobody comes back to tell them. The minute they try something, the anti-Arabs appear.

“I think they’d do a great deal more investing if the atmosphere were friendlier…The direct investments will come from the individuals who have wealth. They will have to look for investment opportunities outside their country.”

McCloy, son of the noted attorney John J. McCloy, former U.S. High Commissioner of Germany, is taking a leave of absence from Brown Brothers to open a new financial consulting firm, Middle East Financial Consulting Associates (MEFCA) in Munich, Germany. MEFCA is a 50/50 joint venture between Brown Brothers and Prince Mohamed bin Faisal al Saud (son of the late King Faisal). McCloy, who was interviewed in New York, said MEFCA will cover “the whole area of finding non-Arab interests and bringing them together with Arab interests or capital.” He said the new firm already is considering a couple of agricultural projects, a pipeline and a hotel — all outside of Saudi Arabia.

Prince Mohamed is expected to play an active role in MEFCA when his time permits, performing such services as referring business and giving advice. “We didn’t set up in Saudi Arabia, because Prince Mohamed is a member of government. He can own shares, but can’t participate (in a company in Saudi Arabia),” McCloy said. The U.S. was eliminated as MEFCA’s operating base because it is too distant in miles and time zones from the Mideast. “You couldn’t communicate during the work day between the Middle East and here,” McCloy said, “while Germany is three to four hours by air from anywhere, and three hours in time difference from the Middle East.”

Getting to Know Arab Wealth

Brown Brothers has been focusing on the Middle East for the past three or four years. McCloy, with the firm for 14 years, was a natural selection for this effort. He has been on the board of trustees of the American University in Cairo for seven years, and even before that connection had a serious interest in Middle Eastern art.

“We’ve been trying to put together joint venture ideas — not with much success,” McCloy said of Brown Brothers Middle Eastern push of the past. “You look at 100 and do two. You make enough money from the two so the other 98 efforts are rewarded. We’ll probably do more with the new company.” He adds what you hear all over the Mideast: “They need Western technology.”

Should any of the deals MEFCA turns up involve an interest in investing in the States, McCloy said Brown Brothers probably would be hired to handle it. The advantages of the project to the Wall Street bank is clearly as McCloy put it: “We’ll be identifying and getting to know Arab wealth.”

While real estate dominates the minds and money of individual Saudis a complex of merchant banking, investment banking and financial advisory services is emerging in Saudi Arabia to create a structure to overcome the strange phenomenon of a private capital shortage in the richest kingdom in the world.

Michael Palmer, International Managing Director for the Saudi Arabian Investment Company, raised this point in an interview in London: “In Saudi Arabia, you have a shortage of capital in the private sector. We are building 100 houses there. It is basically riskless. We can rent our houses for at least $25,000 a year. We are preletting them to large corporations. We could not raise the money in Saudi Arabia. We had to go to Paris.”

John Finnie, an American working for Adnan Khashoggi’s Triad organization in Riyadh, described the private capital shortage within Saudi Arabia as “a self-imposed shortage. Saudis don’t want to put their money in other people’s business. They want to invest themselves. I don’t see a shortage, I see a reluctance. The money is there if you strike the right key. The prime factor is personal confidence. They must know and like you. When an Arab signs a contract with a company, he signs with the individual not the company.”

Among the new institutions organized to fill the vacuum of Saudi Arabia’s private sector financial infrastructure are:

      • The First Boston Corp. has organized and is providing the technical staff for a merchant banking facility in the National Commercial Bank, the nation’s oldest bank.

      • Merrill Lynch, the world’s largest securities firm, has started a joint venture merchant bank with Xenal Industries in Jeddah. Xenal is a partnership composed of a young branch of the Alireza family. The partners are Mohamed, Abdullah, Hisham and Khalid, the sons of Ahmed Yousuf Zainal Alireza, who runs Haji Abdullah Alireza & Co. Ltd., a business established in 1853 some 79 years before the Kingdom of Saudi Arabia was created. An uncle of the four partners, all of whom were educated in the States, is the Saudi Arabian ambassador to the U.S.

      • The Saudi Arabian Investment Company, which was founded in 1974, offers investment banking, engineering and marketing among its services. Reports on the company, available in Jeddah, list the New York securities firm, Shearson Hammill & Co. and Khalid Alireza, president of Xenal Industries, among the firm’s partners. The key executive in this company is Sheikh Ahmed El-Maghraby, considered by diverse observors to be a man with the potential and drive to become an international entrepreneur of some significance. Sheikh Ahmed has a master’s degree from Columbia University and experience in private placements for the Metropolitan Life Insurance Co. The firm’s own business literature shows Prince Mohamed bin Fahd and Prince Abdullah bin Musaid bin Abdulrahman as shareholders and directors.

      • Citibank, which was the first American bank to open branches in Jeddah and Riyadh, is providing financial consulting services to Saudi businesses and has behind it in New York one of the largest merchant banking operations in the world.

      • Chase Manhattan Bank is participating in the new Saudi Arabian Investment Bank along with Japanese and European banks. The Saudis own 60 percent of this institution. Bankers in Jeddah said that Chase is particularly interested in developing portfolio investors in Saudi Arabia. Chase also provides the financial analysts who staff the Saudi Industrial Development Fund, which grants medium and long term interest-free loans of up to 50 percent of the cost of industrial projects. While it is an article of faith that the presence of a prince in a business can do wonders in Saudi Arabia, the Saudi Industrial Development Fund rejected a 78-million riyal loan for a proposed General Motors assembly plant in the desert kingdom on March 4, 1976, according to financial sources in Jeddah. Prince Abdullah Bin Faisal (another of the late King Faisal’s sons) was among the Saudi investors participating in the deal. The source said the consortium putting together the GM deal wanted the government to impose a protective tariff of 20 to 41 percent as another boost to the project involving the assembly of trucks. In a note of finality to the deal, the source said, “GM sublet all their apartments” — something that is not done lightly in Saudi Arabia. Among the reasons the project was considered unfeasible by bankers and other financial men outside of the deal were the port congestion problems of Saudi Arabia and the need to import the labor to operate the assembly lines. A financial source familiar with some of the finer details of the GM project said the investors indicated they “were going to pay dividends of 78 to 80-million riyals before paying back the loan…Some believe Henry Kissinger asked GM to come in.”

    Private Saudi Investors

    The two foremost Saudis investing in the United States are Adnan Khashoggi and Ghaith Pharaon. Khashoggi, often the center of controversy because of his role in arms deals, owns 14.67 percent of the Arizona-Colorado Land & Cattle Company, along with three investment funds in New York, a cattle ranch in Florida, a shopping center and restaurant interests in the west, two small California banks and a truck manufacturer in Arizona. He is often cited by Middle Easterners as a victim of the “anti-Arabs” in the States, which translates into Zionists or pro-Israelis, concerned about U.S. arms being sold to Arab states or the growth of Arab influence in the U.S. This feeling stems from the opposition which blocked Khashoggi from acquiring a one-third interest in the First National Bank of San Jose, Calif. The bank’s chief executive officer, Howard Rathburn, told reporters he had received many letters from stockholders opposing Khashoggi’s investment. He said: “They just don’t like Arabs.”

    Khashoggi, through his Triad Foundation, recently made a sophisticated investment in the U.S., which reinforces his philosophy of synergistic investments: those involving the transfer of skills back to the Middle East. In April, the Triad Foundation announced the creation an “International Institute of Banking and Finance at St. Mary’s College” in Moraga, Calif. The two-year program at the small Catholic college offers a Master of Science in Banking and Finance, and is designed for students primarily from the Middle East and developing countries. Khashoggi, who is one of the more astute businessmen of the Arab world, is moving on his own to help fill the need for trained financial personnel in the Middle East. The institute is designed to be self-supporting through basic tuition fees of $4,000 a year.

    Pharaon, whose base company is the Saudi Research & Development Corp. Ltd., owns 31 percent of the Bank of the Commonwealth in Detroit. The bank has been a distress case since 1969, and when Pharaon bought into it in 1975, the purchase was made against the advice of Citibank, according to bankers in Jeddah. In recent weeks, the bank has been poised on the edge of failure while the Federal Deposit Insurance Corp. and Pharaon worked out a plan to inject new financial life into the institution. The FDIC announced on May 23 that it had agreed to extend a $35.5-million loan to the Bank of the Commonwealth for another five years, and Pharaon was arranging the sale of $10-million in common stock through major Middle Eastern financial institutions to get some badly needed capital for the bank.

    Tales of First Arabian

    The First Arabian Corporation, the Beruit-based investment banking firm which originally helped put Pharaon together with the Bank of the Commonwealth, has opened an office in Jeddah. First Arabian is said to have attracted substantial investments from the Royal family and those around it. Among those said to have interests in First Arabian are Pharaon, Kamal Adham (brother-in-law of King Faisal and an advisor to King Khalid) and Prince Abdullah bin Musaid bin Abdul Rahman.

    News stories last year reported that Prince Abdullah headed a consortium of Saudi investors which acquired a 25 percent interest in Edward Bates & Sons, a London merchant bank with operations in Texas tied to offshore oil drilling. Prince Abdullah subsequently was named to the company’s board of directors. A recent account in the Wall Street Journal described First Arabian as the owner of that 25 percent interest in Edward Bates & Sons.

    The Saudi investments in the United States amount to a piddling sum against the potential for investment from both the private sector and the government. The blocks to such investments lie in a quagmire of reasons within Saudi Arabia: the real estate boom, the fabulous return on investments within the country, the limited experience of most of the ponulation in the financial realm.

    Sitting in a Wall Street office, a financial consultant for a Saudi investment company summed up the situation: “The opportunities to invest in Saudi Arabia are a heck of a lot better than they are overseas…When you get 100 percent in a year, why go outside? We don’t feel it’s worth it to invest in the United States.” Put a little more dramatically — “This is where the gold rush is,” an Arab banker in Jeddah said.

    An American banker in Saudi Arabia provided another perception of the subject: “If you can get 60 percent return on investment here, why bother to send it to the U.S.? That’s what they say. They don’t know how to define their own goals and objectives as investors. They don’t know the difference between risk and yield, investing and gambling. Land in downtown Jeddah is selling for $10,000 a square meter in an area without adequate electricity, sewers, water, telephones. They don’t understand economic values. Prices and values of real estate have no relation in an amateur market.”

    Some Conclusions:

    The Saudis are in a process of compressed financial evolution. The elite international financiers who emerge in the process could be appearing tomorrow and should be appearing within the next decade in the United States as “Arab investment stars.” The desert kingdom, for all of its easy multiplication of money in real estate and construction, is too limited to contain the educated, imaginative entrepreneurs now being shaped in the emerging financial infrastructure. The extensive Royal family, the major merchant families will produce some of these international financiers — and others, like Khashoggi and Pharaon — both the sons of doctors — will arise seemingly out of the desert itself.

    Received in New York on May 26, 1976

    ©1976 Kenneth C. Crowe

    Kenneth C. Crowe is an Alicia Patterson Foundation award winner on leave from Newsday. He is studying the investment and movement of foreign funds into the United States with emphasis on the OPEC nations’ oil monies. This article may be published with credit to Newsday and Mr. Crowe as a Fellow of the Alicia Patterson Foundation.