USS Persian Gulf

With Israel threatening to bomb Iran before the US presidential elections, and their silent partners Qatar and Saudi Arabia financing CIA arms flow to Syrian “rebels”; tensions in the Persian Gulf region are again on the rise. Since the overthrow of the US-puppet Shah in 1979, the international banksters have armed Iran’s Gulf Cooperation Council (GCC) neighbors to the teeth.

(Excerpted from Big Oil & Their Bankers…Chapter 5: Persian Gulf Rent-a-Sheik)

By Dean Henderson, Left Hook

Following the Iranian Revolution the US more overtly displayed its willingness to lean on the Saudi monarchy.  During the 1979 border war between North and South Yemen US Secretary of Defense and Trilateralist Harold Brown pressured the Saudis to supply $390 million worth of US weapons to North Yemen where US advisers were running the show.  The conflict underscored the vulnerability of the oilfields of the Kingdom to the kind of nationalist rhetoric coming from the neighboring South Yemen government.

Brown also directed the Saudis finance the sale of twelve F-SE fighters by the US to Sudan.  With the Shah deposed, Brown busied himself selling surplus Iranian-bound weapons to the Saudis, as well as to Israel, Jordan, Oman and Egypt.  In the spring of 1980 the US signed a military pact with Turkey and sent the Turks $1 billion in weaponry. [206]

The Saudis immediately announced an oil production increase when the mullahs took Tehran.  Within two weeks of that announcement the US State Department unveiled a $1.2 billion program to shore up the Saudi National Guard.  The program would be supervised by Vinnell Corporation, a subsidiary of TRW, the San Francisco-based consumer credit reporting giant and leading supplier of NSA spy satellites.  By 1979 Saudi purchases of US weaponry surpassed even those of the Israelis.

Bendix, Raytheon, Grumman, Northrup, Lockheed, TWA and the US Army Corps of Engineers all flocked to Riyadh to exhibit their wares.  The US implemented American Peace Shield, through which tens of billions of dollars in defense contracts would be doled out.  Richard Secord swung an $8.5 billion contract for Boeing to provide AWACs to the Saudis.  An integrated Command and Control Center (C3) was established in Saudi Arabia. [207]

The US, Britain and France pushed for defense offset deals with the Kingdom, under which weapons were paid for in oil.  In 1990 the Saudis bought French Crotale missiles, with the French receiving discounted oil and promised to invest in Saudi industry.  A British program known as Al-Yamamah was spearheaded by British Aerospace (BAE) and run by a consortium of pan-European interests, whose governments established the Anglo-Saudi Committee.

Under Al-Yamamah the Euro governments, along with BP Amoco and Royal Dutch/Shell, receive free oil.  European arms dealers get contracts with the House of Saud and the Saudis receive help from the British in moving their oil operations downstream by investing in old Eastern European oil refineries. [208]

In 1989 BAE contracted to build Prince Sultan Air Base, while also selling Tornado fighters to the Saudis.  BAE bought Ballast Nedam, a Dutch heavy construction firm with Saudi ties, which built the massive bridge that now links the Saudi mainland to Bahrain. BAE netted $60 billion in the largest contract ever received from the Saudis by a Western company.

According to a June 27, 2007 Financial Times article, Al-Yamamah and BAE were being investigated by the US Justice Department.

The militarization of the Gulf Region went beyond the borders of Saudi Arabia.  In 1980 US arms sales and military aid to the GCC emirates were unprecedented.  The AWAC-monitored C3 defense system, now in place in Saudi Arabia, would be integrated with Hawk missile systems installed in all six GCC nations.

Continue reading