867N.00/12–1449: Telegram
The Ambassador in Egypt (Caffery) to the Secretary of State
1152. Hassan Youssef Pasha said yesterday further in connection with the Sassoon–Cherine matter that in any case the approach on the Sassoon–Cherine level is not the proper level. He said “Why don’t you make yourselves go-between between Israel and Egypt? Only you could persuade the Israelis to put forth items which might form basis of settlement. In effect there is really only one outstanding issue: boundary adjustment. If settlement of the refugees becomes a fait accompli and if agreement can be reached on territorial adjustments, peace can be made.”
He said also that he doubts sincerity of Israel concerning taking care of refugees there if Israel obtains control of Gaza area. “If Egypt,” he continued, “could obtain in lieu of Gaza area the section which includes Beersheba and extending to Dead Sea, Egypt might settle those refugees there.”
He said conversations are under way to renew armistice but could give no details. He reaffirmed that Egypt had no desire to renew hostilities. “However, if Israel resumes hostilities Egypt will be obliged to do as well as she can.”