BOYCOTTS: You're Another

Every U.S. company that does business with the Arab world—and just about every significant corporation does —faces a dilemma. It must comply with Arab laws. But one of those laws is that a business must refuse to deal with companies that in any way aid Israel's economic development. This Arab boycott adds up to a type of discrimination that President Ford has condemned. So what is a company to do?

Last week Bechtel Corp., a huge San Francisco-based engineering and construction firm (1975 contracts: $3 billion), came up with a startling answer. It insists that a company has to observe the...

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