432. Memorandum From the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Allen) to the Secretary of State1

SUBJECT

  • Suggested United States Policy on Israel–Arab Relations

I concur with the attached memorandum with the following exception and comment:

I am not certain that the danger of an Arab–Israeli outbreak during the next six months will stem principally from the Israel Government. Hasty or ill–considered action such as the recent movement of Jordan troops towards the frontier may result in hostilities by accident, even though the Arab Governments may not intend or even desire such an outbreak. Inter–Arab quarrels over dividing up Jordan might also precipitate hostilities with Israel, possibly through a dash across the Negev by Egyptian forces. It seems to me the danger of trouble is about even from the Arabs and Israelis.

As regards F–86’s, I believe we should inform the Canadians that we would be willing to consider allowing Italy to sell a few such planes (six or perhaps twelve) if such action would satisfy Canada’s desire that we share some part of the responsibility for Canadian sales. I would not favor a direct sale by the US at this moment. The position we have taken of refusing such direct sales is a useful one and should not be lost unless no other alternative can be found.

As regards suggested steps towards settlement of the Israel–Arab issues, I would add to Mr. Russell’s suggestions the thought that we consider returning to the 1947 UNGA Resolution insofar as it calls for the creation of separate Arab and Jewish states in Palestine, linked through close economic ties. The Israelis may feel that they are now strong enough economically to achieve gradual economic domination of the Arab state, and Ben Gurion might conceivably be brought to make some territorial concessions to the new Arab state, as long as it was separated from Jordan and could serve as a buffer.

[Page 787]

[Attachment]

Memorandum From the Secretary of State’s Special Assistant (Russell) to the Secretary of State2

SUBJECT

  • Suggested U.S. Policy on Israel–Arab Relations
1.
Short Term Problem: Israel Activism. The danger of an outbreak between the Israelis and the Arabs during the next six months will stem principally from the Israel Government. It is unlikely that the responsible Arab leaders will feel during that period that they have achieved a military position which will justify them in initiating hostilities. The Israel Government, on the other hand, will feel that it is a critical time. The debate in Israel circles between forcing the issue on the one hand and moderation on the other will come to a head. The proponents of the first have recently forged ahead. This is indicated by the dismissal of Sharett and such actions by the Israel Government as the construction of fortifications in the demilitarized zone at Banat Yaacov, the building of kibbitzim at El Auja, the effort to ship Israel cement through the Suez Canal and Ben Gurion’s recent talks with General Burns. Ambassador Eban recently asked for a meeting with you, saying that he was not asking for a general discussion but only for an answer on Israel’s requests for arms and for a $75 million Export–Import Bank loan.3 The nature of your response to Eban will undoubtedly have some effect on early decisions by the IG. It is suggested that in your meeting with Eban you state that:
a.
We are following most closely the changes in Arab effective military strength as a result of Soviet arms shipments; that it is still our conclusion that Israel’s total effective military strength is superior to that of the Arabs and that the Arabs do not intend to launch an attack in the near future; that there are indications that the Soviet Union may not wish to support the Arabs to the point of an attack on Israel and may, in fact, use their influence within limitations to deter them; that as long as Israel maintains a position of military superiority, we believe it would lessen these deterrents if the United States were to change its position on the shipment of heavy arms at the present time.
b.
The reports from Ottawa are not encouraging with respect to the likelihood of Canadian shipment of F–86’s to Israel, although we [Page 788] are waiting for Pearson’s return from his present trip to Europe for a final answer; at that time we intend to explore other possibilities on the basis of the Canadian decision. (Although it would probably be better not to be too specific with Eban, the French have recently filed with NEACC statements indicating their desire to ship substantial additional quantities of arms to Israel and it is not impossible, despite their recent statements to us, that they would be willing to provide another 24 Mysteres. There is good reason to believe also that the Italians, if we gave them our approval, would be willing to sell F–86’s to Israel.)
c.
The Export–Import Bank has not finished its study of the IG application for the $75 million loan and we are, therefore, not in a position to make a final decision on this. If the Export–Import Bank should find that the loan is economically feasible, in whole or in part, we assume that the Israel Government would be prepared to forego construction in the demilitarized zone at Banat Yaacov during the period of time that the construction on the coastal plain which was financed by the Export–Import Bank loan was in process.
d.
Our ability to pursue the policies set forth in the preceding paragraphs will, of course, depend upon the pursuance by Israel of policies that are conducive to peace in the area and especially upon Israel’s cooperation with Hammarskjold and UNTSO.
2.
Longer–Term Problem: Increasing Arab Sentiment for Showdown with Israel. The longer term problem with respect to peace in the Middle East lies in the increasing Arab sentiment for a showdown with Israel as a result of the confidence stemming from the receipt of Soviet arms. It is difficult to formulate now the steps which will be most effective in dealing with this development. It will probably not come to a head until next year. In general, the most effective deterrent will be to work toward a situation in which the armed forces of Israel and the Arab states will be in a mutually stand–off position, with neither side finding it practical to initiate hostilities. We should continue to support Hammarskjold in his attention to the Middle East problem and to support action by the Security Council whenever indicated. We should also continue to follow closely and, where possible, probe the extent of the apparent Soviet policy of stopping short in their support of the Arabs at the point of Arab launching of military action against Israel. From time to time, as circumstances indicated, we might find it desirable to reiterate our continued adherence to the principles of the Tripartite Declaration.
3.
Steps Toward Settlement of Israel–Arab Issues. Although the likelihood of a general settlement of the Israel–Arab dispute is not bright, there may be a possibility of progress from time to time on particular issues. Instances of this would be the Lahoud approach on the Jordan River,4 i.e., parallel construction on the Israel and Arab sides which could later be coordinated in something similar to the Johnston [Page 789] Plan; the transfer of administration of refugee funds from UNRWA to the Arab Governments in such a way as to promote absorption of the refugees into the Arab communities; and a proposal for repatriation of substantial numbers of Arab refugees in the Galilee section of Israel territory that would have gone to the Arabs under the 1947 resolution.
  1. Source: Department of State, NEA Files: Lot 59 D 518, Omega—Memos, etc. fr July 1 to August 31, 1956. Top Secret. The source text bears a notation that Secretary Dulles and Under Secretary Hoover saw this memorandum.
  2. Top Secret. The source text bears a notation that Secretary Dulles and Under Secretary Hoover saw this memorandum.
  3. See Document 420.
  4. See Document 386.