974.5301/7–1951: Telegram
The United States Representative at the United Nations (Austin) to the Department of State
114. Re Suez: In conversation with Maffitt this afternoon Riley, UN TSO chief of staff, said he thought he knew what Fawzi had in mind when he hinted that there might be some way to work out oil situation so that free countries of West would not be prevented by Egypt from obtaining maximum oil supply. At lunch with Fawzi few days ago, Riley said, Fawzi had discussed this dilemma, caused by Egypt’s need to safeguard its security vis-à-vis Israel and had indicated he thought way could be found out of it. Riley asked him point blank whether he had in mind deal whereby Egypt would let oil through to Haifa in return for Israel clearing out of Aqaba area. After slight hesitation Fawzi replied in affirmative. Riley deduced from this that if Israelis would consider some such bargain, Egypt might take step which could well affect whole matter of Arab [Page 785] embargo against Israel. At same time Riley realized prospects of Israeli agreement to such arrangement are remote and could materialize only as part of a basic overall agreement between Israel and Arab states.