611.86/5–451

The Deputy Under Secretary of State (Matthews) to Major General James H. Burns, Assistant to the Secretary of Defense for International Security Affairs1

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Dear General Burns: As you know, the State–Defense Working Group established to discuss the implementation of those parts of NSC 47/5 which called for correlated U.S.–U.K. action met Thursday, April 26. The results of this meeting are embodied in a memorandum entitled “Assumptions, Criteria and Objectives of NSC 47/5, United States Policy Toward the Arab States and Israel”, a copy of which is enclosed. I now wish to inform you that with the few changes of language indicated this paper has the approval of the Department of State as a general basis for the politico-military discussion with the United Kingdom called for in NSC 47/5.

You will note that the Working Group directed attention in Section VII of the memorandum to the need for the formulation of answers to several major questions of policy. I hope that it will be possible for the Department of Defense to consider these questions prior to discussions with the British.

As Secretary Acheson pointed out in his letter of April 262 to Secretary Marshall, it is desirable that the groundwork and coordination between the United States and the United Kingdom regarding the contemplated U.S. Aid Programs to the Arab States and Israel be completed before these programs become public knowledge about May 15. It is also desirable that the French Government be appropriately informed prior to that date. I do not think it necessary, however, that the U.S. and the U.K. reach agreement on all phases of our programs prior to May 15; it should be sufficient to establish lines of policy and general directives for later implementation.

I believe that it would be desirable for the discussion with the U.K. to be handled at the same level and with the same security as the politico-military talks with the U.K. which took place in the Pentagon on October 26, 1950. In the absence of Ambassador Jessup, we propose to designate Mr. Paul Nitze and Assistant Secretary of State McGhee to represent this Department. I will appreciate knowing your thoughts on this matter.

Sincerely yours,

H. Freeman Matthews
[Page 124]
[Annex]

Memorandum Prepared by the State–Defense Working Group Established To Discuss the Implementation of NSC 47/5

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Assumptions, Criteria and Objectives of NSC 47/5, “United States Policy Toward the Arab States and Israel

(This memorandum contains the results of discussions of the State–Defense Working Group on April 26, 1951 set up at the request of the same date from the Secretary of State to the Secretary of Defense.)

i. area concerned and interests of the U.S and the U.K. therein

The Arab States and Israel in which the United States and the United Kingdom have an overall common strategic interest as well as special interests as follows:

Saudi Arabia: Special U.S. interests in Dhahran Airfield and oil. Special (secondary) U.K. interests in training mission in Taif; protection Persian Gulf Sheikhdoms.

Egypt: Special U.K. interest in Anglo-Egyptian treaty (bases); Sudan; Suez Canal movement; Egyptian cotton. Special (secondary) U.S. interest: wartime use of British bases in Egypt; Suez Canal movement. French interest in Canal also.

Israel: Shared U.S.–U.K. interests in land communications via Israel in war; use Israeli manpower; settlement Arab-Israeli differences; naval facilities Haifa; Haifa refinery; policy of impartiality between Arabs and Jews.

Jordan: Special U.K. interest in Anglo-Jordan treaty (bases); U.K.-supported Arab Legion; opportunity Arab refugee resettlement. Special (secondary) U.S. interests similar those U.K.

Iraq: Special U.K. interest in Anglo-Iraqi Treaty (bases); IPC oil. Special (secondary) U.S. interests similar those U.K. French interest in IPC.

Syria: Neither U.S. nor U.K. possess special interests; French special interests: sale of arms; cultural and economic.

Lebanon: Neither U.S. nor U.K. possess important special interests but U.S. interested in the pipeline outlet and refinery at Tripoli, and AUB as cultural center; French special interests largely cultural and economic.

Recapitulation:

Special US
Interest
Special
UK
Interest
US–UK
Shared
Interest
French
Interest
US–UK–France
Interest
Saudi Arabia Egypt Syria Syria Implementation of Tripartite Declaration of May 25, 1950
Jordan Israel Lebanon
Iraq Lebanon

[Page 125]

Note: During the early stages of the development of the program envisaged in NSC 47/5 the area concerned must be carefully restricted to states named; at a later stage the Persian Gulf Sheikhdoms, Libya–Yemen and other peripheral areas may be considered for inclusion.

ii. the nature of the nsc 47/5 program

Program is primarily a political weapon designed to strengthen the several Arab States and Israel; to improve their political and economic stability and to increase their will and ability to resist penetration by the USSR. It follows that political grounds must be accepted as justification for aid. As plans develop regarding the defense of Arabian peninsular oil, the program will take on a more positive aspect for the U.S. in Saudi Arabia.

iii. form of aid envisaged in nsc 47/5

Aid under the program will have the following forms:

A. Economic Source
1. IBRD Loans International
2. Exim Bank Loans U.S.
3. Point IV and related U.S.
4. Grant Aid U.S. for all countries
U.K. for Jordan
5. Procurement assistance U.S. and U.K.
6. Refugee resettlement U.S., U.K. and France within U.N. (possibly U.S. outside U.N.)
7. Emergency oil conservation U.S. and U.K.
B. Propaganda and Information

C. Arms Supply—Cash and Grant

1. U.S. arms aid must be in accord with statutory requirements; i.e., President must find arms so furnished contribute to the security of the U.S.

2. It must be assured that arms will not be used contrary to Bilateral Agreements with U.S. (i.e., Tripartite Declaration protected).

3. Impartiality consistent with strategic considerations must be preserved between the Arab States and Israel.

4. Impartiality will have to be preserved in character of arms supplied.

5. Arms aid should be associated with political quid pro quos that are of general benefit to the West in the Cold War; for example, the British effort in Jordan and the U.S. at DAF must be conceived as of general benefit to the West.

6. Arms aid must be handled so that the countries of the area will not neglect expenditures on economic and social betterment.

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7. Arms aid can be accorded only in response to a governmental request; i.e., governments must be prepared to back their military in making requests.

8. Governments receiving U.S. aid must abide by all MDA requirements re inspection and supervision of end use.

9. Any arms aid will be within the framework of a correlated program for each country; …

10. Procurement assistance is the most valuable part of the program since global arms requirements will continue to exceed availabilities.

11. To conform to U.K. and French practice as well as to save U.S. funds and effort the rule will be cash reimbursable assistance; U.S. grant aid will be employed to achieve general Western political objectives; U.S. Grant arms aid will be a supplement.

12. Types of existing arms will be important factor in the supply of new arms.

13. To avoid inter-country jealousies in the area re arms aid, detailed country programs will be made known only to the countries receiving the aid and in the U.S.–U.K.–France correlation process.

14. Arms supply of all kinds from the U.S., U.K. or France should be susceptible of being shut off at short notice in the event of developments contrary to the Tripartite Declaration, coups d’états or riots.

iv. correlation of arms supply

Principal suppliers of arms will be the U.K., France and the U.S. To meet the above criteria (including the criteria imposed by U.S. legislation) a tripartite system of correlation is required. This system should not be publicized and should work so far as possible under cover.

The functions of such a tripartite system would be:

A.
A means for sharing information regarding the armaments of the Arab States and Israel.
B.
To provide for consultation on U.S., U.K. and French plans to fill arms requirements of individual countries on either a cash or a grant basis. Advance knowledge of plans will:
1.
Avoid embarrassments.
2.
Permit arms supplies to be fitted into programs of other countries.
3.
Permit consideration re character of arms.
4.
Help prevent over-expenditures on arms by individual states.
C.
Keep records of arms supplied.
D.
Be the system to assure arms are not used contrary to tripartite declaration.
E.
Focal point for emergency shut-off of arms supplies (see Criterion 13, above).

Such a system would not possess authority to stop arms supply by any of the three members; would endeavor to operate on the grounds [Page 127] of common sense and honest dealing between members. Instances of serious dispute would be referred to governments for diplomatic handling.

v. u.s.–u.k. correlation on matters other than the supply of arms

NSC 47/5 indicates a number of lines of action in which the U.S. and the U.K. should correlate their activities:

A.
In efforts to resolve Arab-Israel differences.
B.
To secure base rights.
C.
To develop fighting groups and techniques suitable to local capabilities and terrain.
D.
In one of supply supervisory and technical personnel for Near East military establishments.
E.
To make “show-the-flag” visits.
F.
To place orders for needed raw materials and equipment.
G.
Expand and intensify U.S. psychological effort to offset trend towards neutrality.

vi. correlation with france

NSC 47/5 does not specifically envisage a correlation between the U.S., the U.K. and France on matters set forth in the preceding paragraph. However, NSC 47/5 supplements NSC 47/2 and NSC 65/3 which envisaged (a) collaboration between the U.S. and France, where desirable, to obtain basic objectives in the Near East, and (b) cooperation on regulating the flow of arms to the area. To what extent collaboration and correlation with France is feasible and desirable is a matter for early discussion with the U.K.

vii. u.s.–u.k. respective responsibilities with regard to the arab states and Israel

Paragraph 3 of the Statement of Policy in NSC 47/5 does not make clear the nature of the responsibility which the U.S. should have with regard to Saudi Arabia. This should be clarified prior to U.S.–U.K. politico-military conversations. There must also be a clarification of the nature of the respective participation and responsibilities of the U.S. and the U.K. in strengthening the several Arab States and Israel. The recent conversations between the U.S. and the U.K. military leaders at Malta undoubtedly have some bearing on these questions. The settlement of the Mediterranean Command question with the British and the French is tied in closely. The State–Defense Working Group did not attempt to determine the answers to these questions.

conclusions and recommendations

1. In preparation for politico-military talks with the U.K. in the near future, answers should be formulated to the unresolved questions in the immediately preceding paragraph (Section VII).

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2. Departmental clearance in Defense and State should be sought for the conclusions of the Working Group as set forth above.

3. State should be asked to approach the British Embassy to arrange the U.S.–U.K. politico-military talks in the near future, having in mind the fact that these talks should take place before the program becomes public knowledge in the Budget hearings.

4. An important item on the U.S.–U.K. agenda should be discussion of the role of France in the entire program with a view to the French Government being advised of appropriate phases of the program as soon as possible and definitely in advance of it becoming public knowledge.

  1. Drafted by Messrs. Kopper and Jones of NE, and Frederick E. Nolting of G.
  2. Ante, p. 111.