684A.85/9–3050: Telegram

The Acting Secretary of State to the Embassy in Israel 1

confidential

149. Dept Sept 30 in frank, friendly and informal conversation with Shiloah made fol points:

1.
Israel shld look to long-range relations with Arab states and in this interest shld forego seeking temporary advantages such as occupation Yarmuk territory. In interests of area peace and stability wld be desirable that this small disputed area be relinquished by Israel. Incident of Lebanese plane and recent expulsion of Bedouins other examples of action by Israel to gain temporary advantages which resulted in worsening chances of progress toward improvement in Israeli-Arab relations.
2.
Final settlement in NE important to Israel in time of peace since only thru full intercourse with neighbors as well as with rest of world can Israel develop and maintain sound economy. Good relations with neighbors wld give Israel opportunity benefit itself and whole area by full use special Israeli scientific talents and knowledge. However, good relations with Arabs particularly important to Israel shld world war come. Israel may be militarily strong but experience has shown that in a world conflict a strong point must succumb if the hinterland is unfriendly. If world war shld come, many foreign sources of supply now open to Israel certainly wld be restricted. Therefore real effort to improve NE area relations is necessary.
3.
There has long been sympathy in world and in US for Jews as oppressed people. Now that Jews have own state and in specific incidents seem to some people to have changed from oppressed to oppressors, there is danger this sympathy being diminished.
4.
World community cannot be expected indefinitely continue pay for Palestine refugees. Primary responsibility for these people lies with Israel and Arab states. We have noted recent tendency by Arabs to consider resettlement. Israel shld encourage this by making official public undertaking at an appropriate time to compensate refugees for their property.

Fol main points Shiloah’s reply:

1.
Agreed Israel must make real effort reach agreement with Arabs. Such effort must be reciprocated by Arabs, who must not be allowed think time is on their side and that after extracting compensation from Israel for refugees they can refuse discuss other points. Israel fully recognized its obligation pay compensation.
2.
Israel had not recd credit for forbearance it had already shown in face Jordanian refusal implement Art VIII and constant depredations Jordanian infiltrees. On number of occasions Arab states had violated Israel air space. Bedouins expelled into Egypt were infiltrees from Sinai.
3.
As long as there was hope for agreement with Jordan Israel had not protested Jordan laxity in observing Armistice Agreement. When this hope faded Israel decided to “tighten up” and had occupied Yarmuk area to which it entitled. This had had beneficial result in that msg recently recd from Abdullah asking Israel send Rep to Amman. Perhaps talks wld start again. Dept gathered Israel might give up Yarmuk area if agreement reached with Jordan on other points.
4.
Israel cld not agree to separation of refugee item from context general settlement. Was willing that refugees be first installment in “installment settlement” but must be clearly understood other installments to fol.
5.
Friends of Israel and Arab states shld tell Arabs to face realities. Arabs wld not do so as long as it clear to them other nations expected Israel to make prior concessions. Arab hope that Israel on point of economic collapse unfounded.

Dept understands Brit and Fr Reps Tel Aviv to be instructed point out to Israeli auths desirability relinquishing Yarmuk area in interests relations with Jordan, pending discussion question in MAC. After concerting with these colleagues you shld seek separate opportunity take this line in informal conversations with appropriate auths. (See first para this tel)

Webb
  1. This telegram was repeated to London, Amman, Jerusalem, and New York.