			Foreign Correspondent

		      Inside Track On World News
	    By International Syndicated Columnist & Broadcaster
		 Eric Margolis <emargolis@lglobal.com>

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Enemies of the Oil
by 
Eric Margolis

The powerful bomb that exploded last Monday in the Saudi capitol,
Riyadh,  sent shock across the Mideast and set off alarm
bells in Washington and London.

Five American servicemen and intelligence agents were killed
and 60 wounded in the first-ever attack on a US military
base in Saudi Arabia. While American officials made the
usual ritual denunciations of Iran, Iraq and Islamic
extremists, the attack boldly underlined the growing
instability of the Saudi regime.

Washington's worst political nightmare is that one morning
Riyadh radio will announce the overthrow of the Saudi
dynasty by an unknown army colonel who proclaims the new
`Islamic Republic of Arabia.'

Saudi Arabia, the world's largest oil producer, is to
America what India was to Imperial Britain: the jewel in the
crown. Just as much of Britain's wealth last century came
from exploiting the riches and markets of India, today,
America's economy has come to depend on the steady flow of
cheap oil from its Arabian protectorates, and on arms sales
to Arab clients.

US and British military muscle keep the royal families of
Saudi Arabia and the Gulf emirates in power, protecting 
them from larger neighbors, notably Iran and Iraq. In
exchange, the petro-sheiks sell oil at artificially low
prices to the west, buy western goods, and stash their money
in western banks. Saudi arms purchase, some US $14 billion
since the Gulf War alone, produce hundreds of thousands of
jobs in the US, and keep production lines of America's
defense industry running.

America, in turn, closes its eyes to the increasingly
repressive nature of Saudi Arabia and the Gulf Emirates 
while championing democracy and human rights elsewhere in 
the world. The feudal rulers of Arabia, the Gulf, Morocco,
Jordan, and Egypt's military regime, remain the foundation
of America's modern Mideast Raj.

This cosy arrangement may be nearing an end, as many of
Saudi Arabia's 10-12 million citizens grow increasingly
restive under the oligarchic rule of the 8,000-member Saudi
royal family. While the royal family has spread wealth
around the kingdom, many young, educated Saudis want their 
nation to become a modern, democratic republic.  Within the
small army, which is rarely given ammunition for fear of a
coup, must lurk a number of would-be Col. Nassers.
underground Islamic groups.  Since the Saudi regime
tolerates no free speech or political opposition, citizens
have inevitably turned to political Islam
as the sole way of expressing their frustration.  Orthodox
Islamic groups denounce the royal family for defiling the 
holy land of Islam by allowing some 10,000 US and British
military personnel to garrison the kingdom.  These troops,
claim militants, are really an occupation army whose mission
is to corrupt Islamic society and crush any rebellion against
the `traitorous' Saudi dynasty - and hence fair game for
attacks.

Islam is an inherently revolutionary faith that preaches
social equality and opposes accumulation of vast wealth by a
few.  Riches, says the Koran, must be shared among all
Muslims.  Islamic militants advocate increasing the price of
oil to realistic levels - in other words, to cease  giving
it away to the West in exchange for Chicago-style
protection. Such radical talk horrifies Washington and the
US defense industry.

Other Islamic groups scourge the royal family, which styles
itself Defender of Islam,  for shameless, un-Islamic
drinking, whoring and gambling in Europe.  And for moving
towards peace  with Israel. Fundamentalist Muslim groups
condemn modest attempts at modernization, or education of
women.  Interestingly, Saudi Arabia, America's closet Arab
ally, still does not allow women to drive cars.

The government has responded to these rising tensions by
increasing repression against citizens and `guest' workers. 
At least 190 people have been beheaded this year.  Many were
drug smugglers; but some were political opponents. 
Outspoken critics have been arrested, or cowed into silence. 
Attempts were made to poison Saudi dissidents in London who
disclosed embarrassing information about the royal family.

Both the CIA and FBI have aided the Saudis in their
crackdown against political and religious opponents - just
as American agents did in Iran during the Shah's era.  By
doing so, the US has cut itself off from the legitimate
opposition, increasing the risk that the regime that
eventually replaces the Saudi dynasty will be bitterly 
anti-American.

Meanwhile, against the background of a sharply deteriorating
economy caused by mountainous Gulf War debts, a struggle to
succeed the ailing King Fahad has already been joined. Sharp
personal and generational rivalries within the  Saudi royal
family are breaking into the open. If the family splits into
warring factions, chances of its collapse grow
geometrically.  The fall of the Saudis could bring down the
emirs of Kuwait, the United Arab Emirates and the Sultan,
preserve of Britain's Secret Intelligence Service.

In spite of all their vast wealth, the Saudis live in
constant fear: fear of Iran and Iraq; fear of their own
disgruntled people; of terrorist attacks and kidnapping;
fear of their army and national guard; fear that  Egypt or
even Israel might seize their oil fields.  Fear that time
may be  running out for their kingdom built on sand.

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