15. Memorandum From Francis H. Russell to the Secretary of State1

SUBJECT

  • US-UK Discussions on Israel-Arab Settlement

The talks with Shuckburgh resulted in agreement ad referendum on the lines which a settlement should take and the approaches to the parties. Firming-up talks begin in London February 28.

It was agreed, ad referendum, that:

1.
The Turko-Iraq agreement has resulted in a shake-up of Arab state relations, upon which we may be able to capitalize—or which might set us back. In any event we should be ready to act quickly.
2.
While treaties of peace between Israel and the Arabs remain our ultimate objective, the state of Arab public opinion might not permit such treaties at present. We should, therefore, aim for: (a) termination of the state of belligerency, and (b) permanent arrangements which would provide the substance, if not the form, of peace.
3.
A U.S.-U.K. (and possibly French and Turkish) guarantee of the frontiers to be agreed upon is essential as an inducement and should take the form of separate treaties with each of the cooperating countries.
4.
The settlement should include:
a.
Territorial adjustments with some cessions by Israel, including a small triangular piece near the southern tip of the [Page 46] Negev with an overpass for a road from Cairo to Amman involving no substantial interference with Israel’s interests there.
b.
Repatriation of Arab refugees by Israel numbering up to 75,000.
c.
. . . .
d.
Compensation to Arab refugees by Israel for their expropriated real estate, at reduced scale and to be paid in such a way as to promote area development.
e.
U.S. and U.K. to work for adoption by UN of resolution similar to former Swedish plan for international supervision of Holy Places . . . .
f.
Egypt to drop Suez blockade and all Arab countries to end secondary boycott (i.e., sanctions against firms of third countries doing business with Israel).
5.
The time table for the launching of the effort for a settlement would be:
a.
Sir Anthony Eden is visiting Nasser in Cairo on February 20 on his way to Bangkok and will indicate to Nasser our desire to see Egypt develop into a position of increasing influence, which requires a solution of the Palestine problem. He would indicate also (in accordance with your suggestion to Shuckburgh) the benefits to the Arab countries of acting toward that end now.
b.
Byroade, who arrives in Egypt the end of February, will follow through with a presentation of the U.S.-U.K. views to Nasser during March.
c.
If Egypt proves cooperative, the U.S. and the U.K. would inform France and Turkey of the general nature of our efforts and seek their support. Approximately at the same time an approach would be made to Jordan.
d.
A day or two later we would approach Israel telling them that we have reason to believe that the Egyptians will prove cooperative and urging the Israelis to agree to a settlement along the general lines that have been formulated.
6.

For the purpose of keeping the Israelis as calm as possible during the next critical couple of months, you might send a message to Prime Minister Sharett along the lines of the attached draft.2

It is recommended that:

1.
You send the Sharett message. (Tab A)
2.
Indicate whether the line of action outlined above has your approval.
3.
Indicate whether you approve discussions on a restricted basis with Defense, the Bureau of the Budget and possibly the NSC on the form of the security guarantee; economic and military aid which would follow, or possibly accompany, the settlement; recommended territorial changes; Jerusalem; and a program of compensation [Page 47] to refugees:—in order to have as firm as possible a U.S. position

F.H.R.
  1. Source: Department of State,NEA Files: Lot 59 D 518, Washington Talks, Jan.–Feb. 1955: Memos, etc. during progress of meetings (Dated 1/24 thru 2/4). Top Secret.Hoover and Murphy initialed their concurrences.Russell initialed for Allen and Hare, who also concurred.
  2. The draft message, drafted by Russell and dated February 4, is not attached to the source text but, together with a revised draft dated February 7, isibid.,S/SNEA Files: Lot D 417, Alpha Volume 1.