Benjamin Schwadran, editor of Middle Eastern Affairs, charged last night that the present American foreign policy would lose the vast Middle East oil reserves for the West.

Speaking at the Geographical Institute, Schwadran stated that the refusal of the United States to stand up to Nasser over the Suez Canal issue would allow him to gain control of the Arab world at the expense of other leaders.

Such domination by Nasser would trigger a great demand for nationalization of the oil industry and create "absolute chaos," Schwadran claimed. He speculated that this chaos would, at least, cut off the oil supply for a considerable period and, at most, might lead to World War III.

Schwadran said that the United States should insist Egypt abide by the six United Nations principles on the Suez Canal. If Egypt should refuse, the U.S. should apply stringent economic measures and should attempt to isolate Egypt.

The speaker stressed that the question of the huge oil reserves lay behind both the Suez Canal issue and the East-West controversy over the Middle East. He gave estimates which put the Middle East reserves between 67 and 75 percent of the world total.

Explains Differing Attitudes

The differences between the United States and Britain and France can be attributed to their different degree of dependence upon Middle Eastern oil, Schwadran claimed.

Britain and France feel that they must be primarily concerned with protecting the supply of oil which they consider necessary for their national survival, he said. The United States, on the other hand, Schwadran asserted, believes that the Arabs are basically friendly to the West and that every effort must be made not to alienate them by some inept action.

Denies U.S. Lacks Oil

The claim that the United States needs Middle Eastern oil because of dwindling supplies is "far from justified," Schwadran insisted. He said that the estimated reserves have increased in recent years due to new discoveries and improved technological ability.