611.80/5–953

No. 608
Department of State Position Paper1

secret
STA D-6

Lebanon

Summary Paper2

1.
Internal Political Situation: Decree law “civil service” cabinet has completed program and resigned April 27. New parliamentary cabinet had been formed, recently by Saab Salaam, and will implement reform measures, initiate new ones, and continue general program started after bloodless coup of September 1952. Cabinet must try to restore confidence in parliamentary system, and silence critics who maintain reform program not going fast enough.
2.
Palestine Question: Lebanese resent creation of Israel, but not quite as do other Arab states. Officially, however, Lebanon must adhere strictly to Arab League position. Refuses give permanent residence to 125,000 refugees now in country.
3.
Area Defense Arrangements and United States Arms Aid: Lebanese leaders privately favor a MEDO; cannot openly advocate in face of public opinion locally and in other Arab states. President Chamoun has made good-will visits to Arab capitals and secretly tried use influence in promoting regional defense with West. Lebanon has signed necessary assurances to United States, can now receive cash reimbursable military aid; would prefer grant aid, however.
4.
Future of United States Technical Assistance: Technical assistance program finally reached firm ground in December 1952-January 1953. Largest staffed program in Arab states. Lebanese now appreciate its long range aspects, but also will want grant assistance to finance major development program, e.g., Litani River Development, which United States has surveyed.
5.
Lebanon’s Share in Pipeline Earnings: Lebanon infected by agitation elsewhere and convinced oil companies making excessive profits. Lebanese pressing for renegotiation of Tapline (United States) agreement in order obtain increased revenues.
6.
Boycott of Blacklisted Tankers: Lebanon is thinking of boycotting foreign-owned tankers which call at Haifa after loading at Lebanese ports. We disapprove this action.

[Tab 1]

Internal Political Situation

Background

After nine years of rule Lebanon’s first President, Beshara ElKhouri, discredited by charges of corruption, was ousted without violence in what Lebanese call their Constitutional or September (1952) revolution. The new President, Camilla Chamoun, is honest and industrious and was one of an eight-man group which led the attack on Khouri. However, he has been under attack by former allies whose political aspirations have not been satiated, by those who are dissatisfied because a millenium has not issued forth, and by those who suffer from the general negative nature of Arab mentality.

During the six months decree law authority, a civil service cabinet promulgated nearly 100 reform measures, including a controversial electoral law. This cabinet resigned on April 27, and is now being replaced by one composed of Deputies and headed by Saab Salaam, a former Premier. Salaam must try to restore confidence in the parliamentary system and see that reforms are carried through and are supplemented. He faces a trying opponent in Kemal Jumblatt, leader of the Progressive Socialists. Jumblatt advocates a Third Force, a socialist administration, and a program far removed from moderation and compromise; he is gaining considerable following.

Common agreement on the necessity for religious equilibrium helps political stability, however. Other elements furthering stability are a mercantile mentality, stemming from Lebanon’s Phoenician ancestry, and a high literacy rate owing to well developed educational institutions. There is not much danger that Lebanon will become fanatical like Iran or Egypt. There is some feudalism, but democratic government has a broader base in Lebanon than elsewhere in the Arab world.

[Page 1212]

[Tab 2]

Palestine Question

Background

Lebanese, like other Arabs, resent the creation of Israel, although some Christian leaders are privately not unhappy at establishment of another enclave against the Moslem world. Trade with Israel is also a thought which the mercantile Lebanese consider not uninviting. Officially, Lebanese have no choice but to follow other Arabs on the Palestine issue, and certainly the emotions of the street can arise on the question as easily as in more fanatical countries.

The immense United States reservoir of good will was heavily drained in Lebanon by our support of Israel. Exhortation by the United States and other outsiders for peace with Israel is like waving a red flag to a bull. Moreover, Lebanon refuses adamantly to give residence to 125,000 Palestine refugees now in the country, because they are 80% Moslems and their presence constitutes a threat to Christian supremacy. Without refugees there is unemployment in the Lebanon.

Probable Lebanese Position

It is less rigid than in other Arab states, but many Lebanese unofficially believe eventual peace is attainable with Israel if Israel: (a) guarantees present frontiers with possible minor rectifications in Western Galilee; (b) offers the refugees either repatriation or adequate compensation; (c) agrees to internationalization of Jerusalem.

United States Position

See regional paper.3

[Tab 3]

Area Defense Arrangements and U.S. Arms Aid

Background

While Lebanese leaders privately favor a MEDO, they are powerless to take any step in that direction because popular feeling can be easily stirred against it—particularly as long as Palestine and Egyptian problems exist as overriding irritants.

However, Lebanon has expressed specific interest in securing limited arms aid from the U.S.; to that end, Lebanon has been declared [Page 1213] eligible for cash reimbursable military aid, and has signed the necessary assurances, although grant aid would be preferred. Moreover, in a conversation with the American Chargé in October 1952, President Chamoun said “If it ever came to war with the Soviets, Lebanon would be 100 per cent on the side of the West, our harbors would be open to your ships, our airfields to your planes, whether or not we have any kind of treaty or agreement in writing.” Of late President Chamoun has made a number of good-will visits around the Near East, during which he has sounded out other leaders and tried to use his influence in promoting a regional defense arrangement with the West, probably within the scope of the Arab Collective Security Pact.

Probable Lebanese Position

See regional paper. President Chamoun has stated also that Israeli, Turkish or French troops would never be allowed in Lebanon, nor could Lebanese soldiers leave their own territory.

U.S. Position

See regional paper. The Department of Defense is studying a Lebanese shipping list of arms, preparatory to seeing what items might be made available on a cash reimbursable basis.

[Tab 4]

Future United States Technical Assistance

Background

Besides military aid, Lebanon seeks technical and economic assistance from the United States on a grant basis. The Technical Assistance program got off to a slow start, but since the inauguration of a “hard to get” policy by the United States last December, we have received good Lebanese cooperation. The program has the largest staff of any in the Arab States—70 technicians—and the projects are varied and numerous. Of particular importance are the engineering survey of the Litani River basin for hydroelectric and irrigation development; the Kasmie Irrigation and Rural Improvement Projects, and the Agricultural Extension Program.

Probable Lebanese Position

The Lebanese now appreciate the long range aspects of technical assistance, and as time passes and benefits appear more frequently, they may request an even larger program. However, they do not possess oil revenues or other substantial capital sources, and they will inevitably seek economic assistance from the United States, as well as from IBRD and other sources, in order to finance aspects of [Page 1214] their development program resulting from surveys and other technical advice.

United States Position

Our policy has been to discourage the Lebanese from looking for a handout, while encouraging them to find means of self-financing and to utilize international banking institutions. Simultaneously, we urge the Lebanese to make the best possible use of our technical assistance.

[Tab 5]

Lebanon’s Share in Pipeline Earnings

Background

Lebanon is a major oil terminal for Saudi Arabian and Iraqi crude oil pipelines. No transit or tanker payments were received from pipeline companies during the mandate period. Pipeline payments were initiated after World War II and have been subject to continual controversy since that time. Lebanon now receives approximately one cent a barrel from each of the two companies (Iraq Petroleum Company and Trans-Arabian Pipeline Company), or a total of 2½ million dollars a year.

Probable Lebanese Position

Lebanese officials continue to demand more from the companies. Ambassador Malik has requested $10,000,000 per year; Foreign Minister Hakim has asked for 50 percent of the net profits; the Lebanese discuss the problem sporadically with the oil companies, the United States and United Kingdom Governments, as well as with the other Arab states involved.

United States Position

The problem has not deteriorated to the point where the political aspects override the commercial, and consequently, the United States Government considers the matter one for direct discussion between the oil companies and the Lebanese Government. Respect for negotiated agreements on the part of the Lebanese Government should be the best inducement for further attraction of foreign capital into the Lebanon.

[Page 1215]

[Tab 6]

Boycott of Blacklisted Tankers

Background

Foreign Minister Hakim is Lebanon’s protagonist in enforcing the Arab League boycott of Israel. Efforts are reportedly being made to prevent foreign-owned tankers which have called at Haifa from loading at Lebanese ports. Concurrently, the Lebanese Government is attempting to enforce the boycott by requesting all airlines to discontinue their services to Israel.

Probable Lebanese Position

Lebanese officials will probably avoid discussion of the boycott. Defense would be along traditional lines that Arabs are still at war with Israel, and that Lebanese are taking advantage of sovereign rights similar to those invoked by United States in China embargo.

United States Position

Advantage should be taken of every appropriate occasion to make clear United States disapproval of Arab boycott measures which make solution of Arab-Israel problems more difficult. Concessions from Israel are more remote in face of increased Arab efforts to strangle Israel economically.

  1. One of a series of papers prepared for the briefing book for the Secretary’s trip to the Middle East and South Asia; see footnote 1, Document 604.
  2. Annexed to this summary paper as tabs were position papers on each of the problems summarized.
  3. See the paper on Arab-Israeli relations, infra.