Page 421 - Truncal States to UAE_Neat
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Chapter Nine

                  therefore implied possible acceptance of diplomatic relations with
                  communist countries, was clarified, and it transpired that the aim
                  was harmony with its like-minded neighbours. A different position
                  favoured by any of its members would have been incompatible with
                  the UAE’s conservative inclinations. An important decision taken in
                  this context was that the guerilla war in neighbouring Oman’s
                 southern province of Dhufar was eventually recognised by all the
                  authorities in the UAE as a possible threat to its own security, and
                 the willingness to co-operate more closely among themselves,
                 including in security matters and immigration procedures, promptly
                 followed suit.
                   The October War of 1973 was a milestone in a great many respects
                 for the self-understanding of all Arab and most Muslim communities.
                 Within the UAE, loo, this event engendered a universal consensus
                 endorsing large-scale involvement of the UAE in the common Arab
                 concern. Those who shape the country’s foreign policy know they
                 have the assurance that the priorities set by them are universally
                 accepted in the UAE. The October War was a catalyst for the process
                 of rapidly sharpening awareness of a number of issues which are
                 vital for the UAE’s prosperity, such as the management of the oil
                 reserves, the need to invest surplus money for the future, indus­
                 trialisation at home, the role to be assumed in what became known as
                 "recycling the petrodollar”, the obligation to assist Third World
                 countries, and last but not least the possible involvement of the
                 State’s army in the Arab cause.  1C3
                   The revolution in Iran in 1978/79, causing instability in that
                 country, was probably the most important outside event to evoke
                 reactions inside the UAE. This, compounded with the impact of
                 the American/Egyptian/Israeli Camp David agreement, if anything
                 served only to strengthen the Federation.
                   The crisis of the American hostages in Iran and the Soviet invasion
                 of Afghanistan brought the possibility of a clash of the super-powers
                 in the Gulf area very close. It might be speculated that the members of
                 the UAE might disagree among themselves over the position which
                 the State should adopt towards the super-powers, in particular if
                 America were to offer military protection to the vulnerable oil
                 producers, an offer to which all in the Gulf would vehemently object.
                 But if the Arab and international setting in the area remains stable,
                 the debate about the impact of outside events on the stability of the
                 Federation reduces to the question of how well the federal system of
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