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    DOC/VJMUN/2014/GA/STUDYGUIDE

    VJTI

    MODEL UNITED NATIONSUNGA STUDY GUIDE

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    An Introduction to the General Assembly

    TheUnited

    Nations

    General

    Assemblys

    first

    session

    took

    place

    on

    10th

    January,

    1946.

    51

    members

    attendedtheconferenceatLondonsWestminsterCentralHall.Atpresent,thereare132members

    inthisorganoftheUnitedNations,representingalmostallcountries,blocs,opinionsandforemostof

    allthepeople,oftheworld.

    ItwascreatedintheformofaWorldParliament,adeliberativeassemblytoformulatethefuture

    ofourworldeveryaspectofitsocial,cultural,economic,scientific,political,environmentaland

    humanitarian.

    Article10ofUnitedNationsCharterstates,TheGeneralAssemblymaydiscussanyquestionsorany

    matterswithinthescopeofthepresentCharterorrelatingtothepowersandfunctionsofanyorgans

    providedforinthepresentCharter.Itsscopewasfurtherincreasedinits5thsessiononNovember3,1950,whenaUnitedStatessponsoredresolutionnamedUnitingforPeacewasaccepted.Now,

    theGeneralAssembly Resolves that if theSecurityCouncil,becauseof lackofunanimityof the

    permanentmembers,failstoexerciseitsprimaryresponsibilityforthemaintenanceofinternational

    peaceandsecurityinanycasewherethereappearstobeathreattopeace,itwillitselfconsiderthe

    matterimmediatelytomakerecommendationstoitsMembersofcollectivemeasurestobetakenin

    thenameofInternationalPeaceandSecurity.IftheGeneralAssemblyisnotinsessionatthetime

    suchasessioniscalledfor,anEmergencySpecialSessionwillbeconvened,towhichallmemberswill

    havetoattendwithin24hoursofitsbeginning.Tothisdate,fivesuchEmergencySpecialSessions

    havebeenconvened.ThreeoutoffiveweretodiscussanissueintheMiddleEast,twooutofwhich

    wererelated

    specifically

    to

    an

    armed

    struggle

    between

    Israel

    and

    Arabs

    [The

    Suez

    Crisis

    (1956)

    and

    TheSixDayWar(1967)].

    History

    Before there was an OPEC (the Organization of Petroleum Exporting Countries), the great oil

    companiesoftheWestruledtheroost.Oilisthelifebloodoftheindustrializednations.Itisusedin

    planes,cars,tanks,skyscrapers,fertilizer,drugsandsynthetics.YetbackbeforethedaysofOPEC,the

    greatoilcompaniesoftenretained65%ormoreoftherevenuefromaproductthatwas

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    producedonsomeoneelse'sproperty.Thenin1960,manyoftheoilproducingnations,fromboth

    theMiddleEastandelsewhere,formedacarteltoprotecttheirinterests.

    Beforetheembargo,theindustrializedWest,especially

    theUnited

    States,

    had

    taken

    cheap

    and

    plentiful

    petroleum for granted. Between 1945 and the late

    1970s, the West and Japan consumed more oil and

    minerals thanhadbeenused in allprevious recorded

    history.OilconsumptionintheUnitedStateshadmore

    than doubled between 1950 and 1974. With only 6

    percent of the world's population, the U.S. was

    consuming33percentoftheworld'senergy.

    The goal of OPEC was to present a common front in

    negotiations with the giant oil companies, which

    themselvesworked

    closely

    together.

    OPEC

    set

    the

    stage

    foranewprocessinwhichtheproducernationswould

    eventuallytakeoverthefunctionsofthecompanies,at

    least in production, and retain much more of the

    revenues. But OPEC really had little impact from its

    foundingin1960until1973.Thenallhellbrokeloose.

    In 1973, theU.S. and theWesternworldwere in the

    midstofan inflationary spiral.Theworldhadbecomehighlyvulnerable tocommoditycartels,as

    twentyyearsofprosperityandacceleratingpopulationgrowthhadcreatedheavydemandforraw

    materials.In

    the

    U.S.,

    consumer

    prices

    were

    rising

    at

    an

    8.5%

    clip,

    while

    inflation

    rates

    in

    other

    nations

    wereoftenmuchhigher.Thedemand forMiddleEasternoilhadbeen increasing throughout the

    industrializedworldand theneedsof thesecountriesgrew far faster thanproduction.OPECwas

    growingstrongeranditwasdeterminedtoincreaseitsshareoftheprofits.

    PresidentNixon,aspartofhisillfatedpricecontrolprogram,hadslappedcontrolsonoilinMarch

    1973.TheU.S.,whichhadbeenselfsufficientinenergyasrecentlyas1950,wasnowimportingsome

    35%ofitsenergyneeds.U.S.petroleumreserveswerenearlygone.Governments,corporationsand

    individualswereentirelyunpreparedforwhatwouldhappennext.

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    Freeze Date

    The

    Freeze

    date

    for

    this

    committee

    will

    be

    the

    7th

    of

    October

    1973.

    Basically

    it

    means

    that

    committee

    willbeconvenedonthisday.So,wewillnotbeawareofanyissueoccurringafterthisdate.(Inthe

    studyguidewemayhavementioneda feweventsoccurring lateron.Butthat isjust forabetter

    understandingofthiscrisisandshouldnotbeusedincommittee)

    The Agenda

    FORMATION OF THE ORGANIZATION OF PETROLEUM EXPORTINGCOUNTRIES(OPEC)OPECisanoilcartelwhosemissionistocoordinatethepoliciesoftheoilproducingcountries.The

    goalistosecureasteadyincometothememberstatesandtosecuresupplyofoiltotheconsumers.

    OPEC is an intergovernmental organization that was created at the Baghdad Conference on

    September1014,1960,byIraq,Kuwait,Iran,SaudiArabiaandVenezuela.Lateritwasjoinedbynine

    moregovernments:Libya,UnitedArabEmirates,Qatar,Indonesia,Algeria,Nigeria,Ecuador,Angola,

    andGabon.OPECwasheadquarteredinGeneva,SwitzerlandbeforemovingtoVienna,Austria,on

    September1,1965.

    OPECwasformedatatimewhenthe internationaloilmarketwas largelyseparate fromcentrally

    plannedeconomies,

    and

    was

    dominated

    by

    multinational

    companies.

    OPEC's

    Policy

    Statement'

    states

    thatthereisarightofallcountriestoexercisesovereigntyovertheirnaturalresources.BecauseOPEC

    isanorganisationofcountries(notoilcompanies),individualmembershavesovereignimmunityfor

    theiractions,meaningthatOPECisnotregardedasbeingsubjectto"Antitrust"orCompetitionLaw

    inthenormalway.

    VenezuelaandIranwerethefirstcountriestomovetowardstheestablishmentofOPECinthe1960s

    by approaching Iraq,Kuwait and SaudiArabia in1949, suggesting that theyexchange views and

    exploreavenues for regularandclosercommunicationamongpetroleumproducingnations. The

    founding members are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Later members include

    Algeria,Angola,

    Ecuador,

    Gabon,

    Indonesia,

    Libya,

    Qatar,

    Nigeria,

    and

    the

    United

    Arab

    Emirates.

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    In1014September1960,attheinitiativeoftheVenezuelanEnergyandMinesministerJuanPablo

    PrezAlfonsoandtheSaudiArabianEnergyandMinesministerAbdullahalTariki,thegovernments

    ofIraq,Iran,Kuwait,SaudiArabiaandVenezuelametinBaghdadtodiscusswaystoincreasetheprice

    ofthecrudeoilproducedbytheirrespectivecountries.

    YOMKIPPURWARIn1971,EgyptianpresidentAnwarSadatraisedthepossibilityofsigninganagreementwithIsrael,provided

    thatall the territoriescapturedby the Israeliswere returned.Forall the talkofpeace, though, itwasstill

    violencethatgrabbedtheheadlines.Duringthesummerof1972,PalestinianterroristsinfiltratedtheMunich

    Olympicsandmurdered11Israeliathletes.

    Withnoprogress towardpeace,Sadatbegan to say thatwarwas inevitableand thathewasprepared to

    sacrificeonemillion soldiers in the showdownwith Israel.Throughout1972and formuchof1973,Sadat

    threatenedwarunlesstheUnitedStatesforcedIsraeltoaccepthisinterpretationofResolution242total

    Israeliwithdrawal

    from

    territories

    taken

    in

    1967.

    Simultaneously,SadatappealedtotheSovietstobringpressureontheUnitedStatesandtoprovideEgyptwith

    moreoffensiveweapons.TheSovietUnionwasmoreinterestedinmaintainingtheappearanceofdtentewith

    theUnitedStates thanaconfrontation in theMiddleEast; therefore, it rejectedSadatsdemands.Sadats

    responsewastoabruptlyexpelapproximately20,000SovietadvisersfromEgypt.

    InanApril1973interview,SadatagainwarnedthathewouldrenewthewarwithIsrael.Butitwasthesame

    threathehadmadein1971and1972,andmostobserversremainedskeptical.Infact,almostuptothestart

    oftheshooting,nooneexpectedawar.Thenewsofthe imminentattackonIsraeltookuscompletelyby

    surprise,

    PresidentNixon

    said

    later,

    As

    recently

    as

    the

    day

    before,

    the

    CIA

    had

    reported

    that

    war

    in

    the

    Middle

    East

    wasunlikely.

    EgyptandSyriacaught Israeloffguardwhen they invadedthe Jewish land,yesterday,onYomKippur, the

    holiestdayoftheirpeople.TheEgyptianaswellasSyrianarmystagedmilitaryexercises,ontheirsidesofthe

    SuezCanalandGolanHeightsrespectivelyandcalledupmostoftheirreservetroops.However,theIsraelis

    dismissedthesepreparationsofwarasmeremilitaryexercises.

    Israelsmilitarystrategyisbasedonthethinkingthat,ifintelligencewasreceivedofanimpendingattack,then

    IsraelwouldconductapreemptivestrikeagainsttheArabs.Clearly,IsraelreliedonandtrusteditsIntelligence

    AgencyMossad,eventotheextentthattheybelievedthatMossadwouldgiveIsraelatleast48hoursnotice

    beforeawar.

    However,

    Mossad

    failed

    Israel

    this

    time.

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    GoldaMeir,IsraelsPrimeMinisterandMosheDayan,theMinisterforDefence,both,werenotinthefavour

    of a preemptive strike against the Arabs, as it would have cost them the invaluable American support

    (Kissinger,SecretaryofStateapparentlysentMeiracablesayingDontpreempt),asUSAwouldnothelp

    Israelifitwasasanaggressor.Also,theythoughtwarwasnotnecessarilyimminentasSyriawouldnotattack

    withoutEgypt

    and

    Egypt

    would

    not

    attack

    until

    and

    unless

    it

    had

    all

    the

    weapons

    it

    required

    from

    the

    Soviets.

    TheEgyptianshavecrossed theSuezCanalalready.TheSyrianshavealready takenoverMt.Hermon, the

    highestpointintheregion,astrategicvantagepoint,owingtoanunobstructed360viewofthearea.Almost

    amilliontroopswiththousandsoftanks,aircrafts,etc.arereadytoinvadeIsrael.Israelisstilljustcallingupits

    reserves.

    OILCRISISTheArabsbelievethatJerusalemshouldbeintheirhands,

    notinIsraels.Hence,theyhaveannounceda70%hikeinoil

    pricesand

    a5%

    cut

    in

    production

    directed

    mostly

    towards

    theIsrael supportingWesternworld.Asoilisvitaltotheir

    economies, severalWestern countriesmightbedeterred

    fromhelpingIsraelmilitarily.Thiswillalmostcertainlylead

    to Israelsdefeatas the large forceoftheSovietUnion is

    behindtheEgyptianandSyrianarmies.

    Theyhavealso said that theymay imposeacompleteoil

    embargo on any and all nations that aid Israel. Their

    demandtosuchnationsinreturnforuninterruptedsupply

    ofoil

    was

    declaring

    support

    for

    the

    implementation

    of

    UNSCR242,especiallytheclausestatingIsraelswithdrawal

    topre1967borders.

    One of the reasons why the impact of the crisis was so

    dramaticwasthat,intheyearsprecedingthecrisistheUS

    dependencyon importedoilshad steadily increased.This

    canbewitnessedbythefactthatin1970only22%ofAmericasfuelconsumptionrelieduponforeignfuel,but

    thishadrisento36%bythetimethecrisiscommencedin1973.AnotherproblemwasthefactthattheUShad

    aweak internalpoliticalstrategy inrelation toenergyconservation,whichmeantthe impactwasperhaps

    greaterthanitmighthavebeenhadconsumersbeenandautomobilebeenencouragedtooptforautomobiles

    thathadagreaterlevelofefficiencyintermsoffuelconsumption.ThedifficultyfortheUSgoingforwardis

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    that,unlessitaddressesandembracesenergysavingpoliciesinamorepositiveway,itseconomywillcontinue

    to remain vulnerable to disruption and disturbances that occur within the major oilproducing nations

    throughouttheworld,especiallyintheMiddleEast.

    Current Situation

    Oilprocured fromtheMiddleEastcontinuestosustainahighdemandofconsumptiondueto its

    betterqualityandrelativelylowerprices.Moreover,oiltradewiththeMiddleEastisfurtherfavoured

    dueto itsproximitytoContinentalEuropeandAsiathrough landandsearoutes. (VenezuelanOil

    hardlyfindsitspresenceonIndianandChinesesoils.)Furthermore,complementingthehighdemand

    fortheArabOilisthepresenceofhighsupplyoftheOilwithintheMiddleEast.Statisticshighlight

    thattheMiddleEastaccountsforhalfoftheworldsreservesofcrudeoil,producingnearly1000

    milliontonnesperyear.Outofthe1000millionproduced,thenetoilrequirementoftheMiddleEast

    isapproximatedtoaround60milliontonnes.InstarkcontrasttothissituationisthatoftheWestern

    World.Theratioofoilrequirementtooilproductioninthelattercaseisimmenselyskewed;while

    theWestern

    world

    produces

    around

    640

    million

    tonnes

    of

    oil

    per

    year,

    it

    requires

    1500

    million

    tonnes

    peryear.

    Inoileconomics,theglobalpriceofcrudeoilissameforallcountries.(However,thecostofrefining

    andthedomestictaximposedbycountries,makethepriceofpetrolordieseldifferentaroundthe

    world).Thecrudeoilpriceisdecidedbyaseriesofformulae.However,twoinferencesstandoutin

    thisdiscourse: first, thepriceofcrudeoilhas tobe sameeverywhere, irrespectiveofwhethera

    countrygetsitsoilsupplyfromVenezuelaornot.Moreover,thepriceofoilinacountrywouldalso

    increase ifVenezuelacuts itscrudeoilexports.Secondly, iftheMiddleEastcutsoilproductionor

    exports,thepriceofoilwillincreasedrasticallyintheWorldasarepercussionsoastosustainmarket

    equilibrium.

    In such a situation, the proposed Oil Embargo would not be as successful in blackmailing and

    threateningtheWesternWorld,astheproposedcut inoilexportsandproductionwould. Hence,

    evenaminordisturbanceinthisregionhasthecapabilitytoplungetheworldinacrisislikesituation.

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    Events leading to the war

    The pivotal factor that motivated Syria andEgypttoinvadeIsraelwastheirhumiliatingandcrushing

    defeat.

    Witness

    to

    their

    widely

    prevalentacrimoniousattitudeistherampanthijackings,massmurders,andbombings thatwere specifically aimed against the Israeligovernment by groups such as the PFLP(Popular Front for Liberation ofPalestine).Notableattacksagainst Israelwerethe Munich Massacre of 1972, Lod AirportMassacreandthefailedhijackingofElAlflight219aspartoftheDawsonsFieldHijackings.

    On

    September

    13,

    the

    Israeli

    and

    Syrian

    armies

    met each other in a violent crossfire thatresulted in the lossof twelveSyrianaircraftsandone Israeliaircraft.Justafewweeksago,therewasmassmobilisationoftroopsontheSuez Canal as well as the Golan Heights byEgypt and Syria respectively. However, Israelmistook this mobilisation to simply be atraining exercise. Their understanding of themobilisationarose from the fact thata largenumber of Egyptian reserve forces went toMecca as pilgrims at the end of September

    eachyear.

    Furthermore, the Israeli Governmentsmisinterpretation of the armed mobilisationcouldbealsotracedbacktoMayofthisyearwhenonnotificationbyawellplacedspyinEgypt,Israelthoughtthatthesimilarmobilisationoftroopswasapreparationforaninvasion.TheGovernmentreactedbycallingupallofitsreservedforces (nearly a fifth of its working population) and brought Israels daily activities to a halt.However,themobilisationhadturnedouttobeafalsealarm.Humiliated,theIsraeliGovernmentdidnotwishtorepeattheirmistake.

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    The Attack

    TheattackbyEgyptandSyriawaswellplannedandwasoneofthefewcrucialArabsecretskeptfromtheMossad.TheychoseYomKippur,theholiestdayofJudaism,toinvadeIsraelasmostofIsraels

    Jewish

    soldiers

    would

    be

    off

    duty

    with

    their

    families.

    Some

    sources

    also

    state

    that

    their

    motivationforchoosingthisdaylayinthetheorythat IsraeliswouldbetooweaktorepulsetheAraboffensiveafteradayoffastingTheEgyptianSecondandThirdarmiesinvadedtheSinaifromtheNorthernandSouthernfrontiersrespectively.TheyquicklypenetratedtheBarLevLineandthethin Israeli lineofdefence.Theymadeuseof theirAir Force to attack Israelibases andHawkSurfacetoAirMissiles. Israelhadconstructedhugesandwallson itssideoftheSuezCanalandEgyptianengineers spent around 2hours in thewarbreaking through thesewalls to facilitatecrossingofheavyarmourandtanksacrosstheCanal.TheSyrianAirForcemadeuseofairstrikesagainst Israelimilitarypositions in theGolan, taking controlofMt.Hermon (thebest strategicadvantageeithersidecouldwishfor)yesterdayitself.YesterdayEgyptstartedablockadeagainstIsraelishippingontheStraitsofBabelMandeb(separatingtheRedSeafromtheGulfofAden).

    SeveralArabnationsandSovietUnionhavepledgedsupporttothearmiesofEgyptandSyria.TheyhavealsosignalledtheirreadinesstouseoilasaweaponagainstthecountriesoftheIsraelibloc.Hence,severalIsraeliallieshaveshownanuneasinessinopenlysupportingIsrael,asoilrunsnotonlytheirvehiclesbutalsotheireconomies.

    MilitaryoffensesasapartofOperationBadr

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    Changes in the oil world in 1973

    OnMarch161973,theOPEChadheldits32ndmeeting.Duringthemeeting,themembernations

    discussedthepossibilityofraisingpricesofcrudeoil,soastooffsetthereducedvalueoftheUSdollar.

    Thishad

    led

    to

    a5.7

    percent

    increase

    in

    oil

    prices

    by

    the

    OPEC

    on

    April

    1.

    Consequently,

    on

    June

    1,

    eightOPECcountrieshadonceagainincreasedoilpricesby11.9percent.ArabnationssuchasLibya,

    IranandIraqnationalizedtheconcessionsofvariousoilcompanies.TheShahofIranhadannounced

    on23JanuaryanoperatingagreementbetweenIranandaconsortiumofoilcompanies(theSeven

    SistersastheywerecalledbyEnricoMattei).OnSeptember16theOPECreiterateditssupportfor

    thepricehikes.Asaresult,wecanseethattheideaofusingtheOilWeapontogainfavourinthe

    IsraelPalestineissuewaslongembalmedinthemindsoftheArableaders.

    USOilProductionand ImportsInAugust, theUSCostof LivingCouncil imposedanew twotierprice ceilingondomestic crude

    petroleumsales.Accordingtothissystem,oldoil(oilproducedatorbelow1972levels)weretobe

    soldat

    the

    May

    15,

    1973

    posted

    price

    plus

    35

    cents,

    while

    the

    new

    oil

    (oil

    produced

    above

    1972

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    levels)wastobesoldatuncontrolledprices,soastoallowthemarketforcestodecideitsownprices.

    PresidentNixonimplementedthispolicytoprovideanincentivetoproduceincreasedquantitiesof

    domesticcrudeoil.Althoughthepolicywasexpectedtoaidinthegenerationofmarginalincrements

    inthedomesticcrudeoilsupply,theoverarchingideawastopromotedomesticoilproductioninthe

    lightofthecomingenergycrisis.

    AfterNassersdeath in 1970,Anwar Sadat emerged as thenew Egyptian leader.Hebelieved in

    Clausewitzsdictum that Warwas the continuationof politicsbyothermeans.Hehad amore

    diplomaticandshrewdapproachtotheissue.HeconvincedKingFaisalofSaudiArabiathattheArab

    nationsmustusetheOilWeapontoachievetheirgoalsintheIsraelPalestineconflict.

    Today,themembersoftheOPECarethreateningtoraisepricesofoilby70%andcutproductionby

    5%alongwithembargoesagainstanynationsthatsupportIsrael.Thisissettoresultintheriseof

    priceofonebarrelofcrudeoilfrom$3.01to$5.11.ThePossibleImpactoftheIssuetheOilWeapon

    has,inthepast,failedtoachieveitspoliticalandeconomicgoals.However,thistimeitssuccessis

    highlyplausible formultiple reasons.This timearound, thereareaconsiderablenumberofArab

    nationswho

    are

    all

    threatening

    to

    use

    the

    Oil

    Weapon;

    anumber

    much

    larger

    than

    ever

    witnessed

    inhistory.Thededicationofthenationstothiscauseisunprecedentedandisfurtheraccentuatedby

    anincreasedgovernmentcontroloveroilproductionandexportintheirrespectivenations.Suchis

    themomentumofthecrisisthatitissettochangetheveryfaceofoiltradeandcreateitsrippleeffect

    ontoeverynation.

    Untilnow,changesinthepriceofoilhavebeendecidedafternegotiationsbetweentheoilcompanies

    andtheOPEC.AlthoughtheOPEChasusuallysucceededingettingitswaythroughthedeliberations,

    themerepresenceofnegotiationsanddiscussionshadensuredacertainamountofstabilityinthe

    oilmarket.WiththeOPECsettotakethepricingofoilintoitsownhands,thefutureofoilisfraught

    withchaos

    and

    uncertainty.

    It

    is

    for

    the

    first

    time

    that

    there

    would

    be

    amarked

    decrease

    in

    oil

    production.Everycountryintheworld,irrespectiveofitssupporttoIsraelortheArabswillbebrought

    underthenegativeimplicationsofarbitraryoilpricing.Keepinginmindthegravityofthesituation,

    membersoftheinternationalcommunity,especiallythosewhosupportIsrael,areunderacompelling

    pressuretocomplywiththewishesoftheArabs.Thisalsomeansthattargetednationswillnotbe

    abletoprocurethisoilfromelsewheresincetherewillbeaworldwideshortageofoil.Withwinter

    approaching,thismeansthatthousandsoffamiliesaroundtheglobewillhavetobravethecold.

    Thisissuewillalsohaveahugeimpactontothepoliticaldiscourseoftheworld.Nationswhocurrently

    supportIsraelmightbecompelledtosupporttheArabnationsoratleasttostopaidingIsrael.Many

    nationssuchasBritain,FranceandJapanwhocannotaffordadecreaseinoilimports,wouldbeforced

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    tosidewiththeArabs.The issuecouldalsohaveanoppositeeffect;that is,nationswhocurrently

    supporttheArabscouldbesoaggravatedbythereducedamountsofoilandtheincreasedpricesthat

    theywouldbegintosupportIsrael.

    The implicationsofthiscrisisare largeand leavenonation inunaffectedor in isolation.Thevery

    dynamicsof

    diplomacy,

    economics

    and

    warfare

    is

    set

    to

    change.

    Such

    avolatile

    situation

    must

    be

    handledwiththeutmostcare.