Office of the Historian

447. Memorandum of a Conversation, Secretary Dulles’ Office, Department of State, Washington, October 31, 1956, 4 p.m.1

Washington, October 31, 1956, 4 p.m.

PRESENT

  • The Secretary
  • The Under Secretary (later)
  • Mr. Murphy
  • Mr. Prochnow
  • Mr. MacArthur
  • Mr. Bowie
  • Mr. Kalijarvi
  • Mr. Wilkins
  • Mr. Burdett
  • Mr. Greene

SUBJECT

  • Sanctions Against Israel

The meeting discussed a memorandum to the Secretary from Mr. Rountree (attached).2 Mr. Rountree suggested that there were three questions to be considered:

  • whether the U.S. should go ahead with measures against Israel in the absence of a Security Council resolution and in the presence of British and French armed attack on Egypt;
  • whether measures should or could be considered against Britain and France; and
  • whether any measures against Israel would be practically effective in forcing the Israeli to desist and return behind the armistice lines.

The Secretary felt that the U.S. must do something and could act on the basis of the 1950 Tripartite Declaration, which provided that action could be taken within or without the United Nations. The Secretary wanted to know what would be involved in each proposed course of action, suggesting that the main purpose for the moment would be psychological, and did not want to take all the possible steps available to us now since this would not cause the withdrawal of the Israeli forces. On the other hand, taking some measures would disrupt their activities and show we mean business.

The Secretary also decided to send for the Israeli Ambassador and tell him we are considering economic measures and want to know his government’s intentions.

Cancellation of aid

(a)
Economic assistance and the delivery of goods to Israel should be suspended; current technical assistance projects may continue but no new projects should be initiated.
(b)
Provision of surplus agricultural products should be suspended so far as practical without interfering with loading operations or shipments already underway.
(c)
There is only $2000 left of the Ex-Im Bank loan, so that it does not matter whether withdrawals are suspended. The survey mission should, as indicated, continue to delay its departure.
(d)
No new investment guarantees should be undertaken and we should not renege on investment guarantees already in force.
(e)
No action need be taken on existing information media guarantees.
(f)

(i) All shipments of military equipment should be suspended as practical, without interfering with operations too far advanced to be stopped.

(ii) All exchanges of military information should be suspended.

(iii) No new Israeli trainees should be accepted in service schools, but those already here, understood to number two, can remain.

Proclamation by the President3

Agreed not necessary.

[Page 893]

Embargo on Shipments of Arms Munitions and Implements of War

Agreed that no export licenses will be issued for items on the munitions list and outstanding licenses will be suspended.

Export Licensing

Items on the positive list should not be licensed for export.

Embargo on Calls by U.S. Ships or Aircraft

Agreed no action at present.

Blocking Transfers of Funds4

The Secretary decided this should not be done yet but should be kept in reserve and the possibility used to persuade the Israeli to stop fighting.

Publicity

The Secretary agreed that an appropriate public statement should be prepared indicating that these measures are being taken in the context of the 1950 Tripartite Declaration and the President’s statement of October 29 that we will honor our pledges and should make plain that we are suspending governmental assistance.

The Secretary also asked that Mr. Hollister’s letter be answered by informing him of the conclusions of this meeting.5

Joseph N. Greene, Jr.6
  1. Source: Department of State, Central Files, 786.56/10–3156. Secret. Drafted by Greene. The source text indicates this is an informal record of the meeting.↩
  2. Not attached to the source text. The memorandum, dated October 31 and entitled “Measures to be Taken Against Israel”, is ibid., 611.84A/10–3156. It contained a list of proposed measures to be taken against Israel.↩
  3. The Rountree memorandum advised that a Proclamation by the President declaring a state of national emergency was not desirable at that time.↩
  4. The Rountree memorandum recommended that the U.S. Treasury immediately issue an order blocking all Israeli funds in the United States, government as well as private, including transactions, and prohibiting all transfers of funds to Israel.↩
  5. The Department of State subsequently on November 1 transmitted a “Record of Decision”, listing the eight decisions made at the meeting, to Goodpaster at the White House (Eisenhower Library, White House Central Files, Suez Canal Crisis) and to Hollister at ICA (Washington National Records Center, ICA Director’s File: FRC 61 A 32, Box 309, Israel). A handwritten notation by Goodpaster on Howe’s covering memorandum to Goodpaster indicates “Action changed—will await UN action.” A handwritten notation on the copy in ICA Files indicates that the document was received in the Executive Secretariat of ICA at noon on November 1, and that it was cancelled by Hollister and Dulles at 2:30 p.m. on November 1.↩
  6. Printed from a copy that bears this typed signature.↩