Saudis’ unprecedented break with Washington over Egypt

by F. WILLIAM ENGDAHL

File:FDR on quincy.jpg United States President Franklin Delano Roosevelt with Saudi Arabia’s King Ibn Saud on board USS Quincy (CA-71) in the Great Bitter Lake, Egypt, on 14 February 1945. The King is speaking to the interpreter, Colonel William A. Eddy, USMC. Fleet Admiral William D. Leahy, USN, the President’s Aide and Chief of Staff, is at left. PHOTO/Wikimedia Commons

One of the least commented aspects of ousting Egypt’s Morsi is the defiant act of the Saudi Royal House in backing the ouster of the Brotherhood and supporting the military restoration. The Saudi move is unprecedented in its open defiance of White House declared backing for the Muslim Brotherhood. The implications of the split are huge.

Twilight in the desert?

Since the time in 1945 on his return from the fateful Yalta Conference, that US President Roosevelt met Saudi King Ibn Saud and won exclusive rights for US Rockefeller-group oil companies to Saudi Arabia’s vast oil wealth, the relationship between Saudi and US foreign policy has been one of almost satrapy status for the Saudis. [1] Following the Kissinger-orchestrated 1973 “oil shock” in which OPEC raised its price by some 400%, Washington extracted a pledge from the Saudis that they would insure that OPEC sold its oil only in dollars, thereby ensuring the continued dominance of the US dollar as world reserve currency. In return, Washington agreed to sell US arms including training the Saudi Air Force. [2]

And in 2010 just as Washington launched its Arab Spring “democracy” offensive in Tunisia, Egypt and across the Islamic arc of crisis, the Obama Administration announced the largest arms deal in US history. The US agreed to sell the Saudis 84 F-15s new and upgrade another 70 as part of a €46 billion deal, the biggest arms deal in US history, as it prepared to isolate Iran. [3]

As we reported in an earlier article, before the Egyptian military coup, the Saudis had given secret assurance to Defense Minister and Chief of the Army, General Abdul Fattah al-Sisi, that the Saudis along with other conservative Gulf oil states including Kuwait and UAE would guarantee financial support should the Obama Administration cut the €1 billion annual aid to Egypt’s military in retaliation for ousting their man, Morsi. [4]

On July 17, the newly-sworn-in Egyptian transitional government confirmed that it has received €6 billion in grants, loans and fuel from Saudi Arabia and the UAE.

Saudi Arabia approved €4 billion in aid to Egypt and the UAE has offered €2 billion in desperately needed support for the economy. The Saudi funds comprise a €1.5 billion central bank deposit, €1.5 billion in energy products, and €750 million in cash, Saudi Finance Minister Ibrahim Al-Assaf said. The UAE will make a €750 million grant to Egypt and a €1.5 billion loan in the form of an interest-free deposit with Egypt’s central bank. [5]

The news is a double slap-in-the-face to Washington who had insisted that Morsi’s government buckle under to harsh IMF conditionalities as precondition for financial help.
Qatar reacts dramatically

Conspicuously, one Gulf energy-rich state absent from the aid is Qatar whose Emir Hamad bin Khalifa al-Thani had poured more than €6 billion in Egypt since the revolution two-and-a-half years ago and perhaps another €7 billion to bankroll Islamists in Libya, Syria and Gaza, the Palestinian enclave run by Hamas, an offshoot of the Muslim Brotherhood. Qatar is home to the US Central Command’s Forward Headquarters and the Combined Air Operations Center. And, most notably, until the Saudi and UAE-backed military coup against Brotherhood rule in Egypt on July 3, Qatar was home to leading members of the Muslim Brotherhood and one of its major financial backers in Syria, Egypt, Libya, and across the Islamic world. [6]

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