800.8890/10–449: Telegram

The Acting Secretary of State to the Embassy in Egypt 1

confidential

977. Since fall 1948 Amer Export Lines has been operating separate scheds Arab and Israeli ports. Company voluntarily adopted this policy because it feared NE Govts might seize cargoes or apply other restrictions vessels and passengers thereon calling both Arab and Israeli ports on same continuous voyage. As result efficiency of service has been impaired.

Because of improved NE situation company now proposes resume including Arab and Israeli ports on same scheds.

As stated previous tels, Dept is of opinion signature armistices, removal UN and US arms embargoes and peaceful conditions prevailing NE shld eliminate any possible obstacles resumption normal navigation and trade, movements passengers and cargoes etc. in eastern Med. Indicative of changed situation US has, for example, approved export license for four Beechcraft bombardier-trainers consigned Egyptian Govt and giving active consideration other applications for licenses mil equip destined NE Govts.

Discuss foregoing with FonOff stating USG trusts there will be no interference with normal operations Amer Export Lines or similar US services. Report reaction soonest together with estimate whether or not vessels likely encounter difficulties. Beirut take parallel action.

Urinfo: If response this approach not unfavorable Export lines tentatively plan inaugurate new policy by routing freighter on continuous voyage Arab and Israeli ports within the month.

[Page 1419]

Ur further info: Rep Brit Emb Washington informs Dept Sirry Pasha in July granted permission Brit luxury cruisers Coronia and Brittanic call Alex en route Tel Aviv this winter with no restrictions except on shore movements “Zionists” or bearers passports Israel or other govts not recognized by Egypt. Leb understood to have permitted at least two Bulgarian and one Danish freighters calling Beirut en route to/from Israel unload and load cargoes unmolested. (Beirut see ltr from Heald & Co Sept 14.2)

Webb
  1. This telegram was sent also to Beirut as No. 583 and was repeated to Tel Aviv, Haifa, Port Said, Alexandria, and London.
  2. Ambassador Caffery spoke on varied subjects with King Farouk on October 10, including the subject of lifting Egyptian wartime shipping regulations. The Ambassador reported the conversation in telegram 943, October 12; for text, see p. 223.

    Beirut reported, on December 22, that the Lebanese Foreign Office had “prepared ruling to effect ships which have entered Arab port either before or after visit to Israeli port will be allowed enter Beirut. Note must receive Cabinet approval before signature.” (telegram 649, 800.8890/12–2249) This message also advised that the Lebanese Foreign Minister had informed Minister Pinkerton that “he would like to see Lebanon sign treaty with Israel and it would closely follow any Arab country other than Jordan in negotiations.”