Yankee Go East

Dollar diplomacy for peace

"When American companies go in to help countries recover from wars and learn to thrive in peace, it's a pretty tough diplomatic act to beat." So said Robert Strauss last week on his third trip to Israel and Egypt since being appointed President Carter's special Middle East envoy last April. This time the shuttling Texan took with him eleven U.S.businessmen. His aim: to foster the sort of investment in the area that would help to cement the Camp David agreements with tangible economic benefits for all.

Both countries need more U.S. capital and know-how. Eager to increase exports, the Israelis are interested in joint ventures with U.S. electronic and computer firms. But Egypt is considerably less developed and more populous (41 million vs. Israel's 4 million) and thus offers both a large market and great opportunity. Egypt needs many small-scale investments, in the $5 million to $10 million range, just to help produce such basics as food, clothing and shelter.

The members of Strauss's group were warmly welcomed by Egyptian government officials and private entrepreneurs. With advanced irrigation methods at the top of their priority list, the Egyptians applauded a promise by Charles Kuhn, chairman of Wylain Inc., a Dallas manufacturer of submersible pumps, to begin exporting some of his sophisticated gear to replace the ox-drawn pulleys widely used in rural areas. Samuel Miller, vice chairman of Forest City Enterprises Inc., a Cleveland-based homebuilder that makes low-cost housing units, is considering a joint venture with Egyptian Construction Magnate Osman Ahmed Osman to help alleviate Cairo's chronic housing problems. Several American clothing manufacturers are pondering partnerships to provide new equipment for Egypt's tattered textile concerns. Donald Shorr, a vice president of Hart Schaffner & Marx Clothes, was along last week to look into partnership possibilities to produce shirts and suits for the Egyptian market. Once these projects are under way, Strauss plans to go after larger investments: up to $100 million in such areas as plate glass, soft drink and shoe factories, auto parts and luxury-hotel construction.

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