73. Memorandum From the Assistant Secretary of State for Near Eastern and South Asian Affairs (Talbot) to Secretary of State Rusk1

SUBJECT

  • The Palestine Problem, 1964–65

We have just concluded a “think-session” outside of Washington on possible new approaches to the Arab-Israel problem. Representatives of AID, IO, PPC, INR, AFN, and CIA, as well as NEA and NE, pooled their background knowledge and imagination in an effort to provide guidelines for future policy decisions. The consensus of the group is set forth in the attached “Possible U.S. Initiatives on Arab-Israel Issues in 1964–65”. The recommendations were concurred in by all present in their capacities as participants in the conference, although their concurrences do not represent formal clearances from their respective agencies or bureaus.

You will see from the paper that we didn’t discover opportunities for dramatic new departures. I believe, however, the suggestions made therein will help inch the situation forward.

Attachment2

POSSIBLE U.S. INITIATIVES ON ARAB-ISRAEL ISSUES IN 1964–65

1.
U.S. interests in the Near East have long been vulnerable to pressures arising out of indigenous social change, the outward thrust of Arab nationalism against the remaining points of Western privilege, Communist ambitions, and intra-area disputes, particularly the Arab-Israel conflict with attendant military escalation. Nevertheless, we have managed to maintain our basic interests in the area—access, transit, oil, and the integrity of Israel and other states—at relatively low costs. Our objective is to continue to do so.
2.
Despite the bellicose statements we hear, neither Israel nor the Arab states are prepared to gamble on settling their differences by war. Neither side has confidence it could win or would be permitted to keep its gains, or even limit the course of hostilities or number of participants. Nonetheless, escalation to sophisticated weaponry and possibly (first on the Israeli side) to nuclears is intensifying the risk of accidental war and decreasing the certainty that we can deter or stop it.
3.
Israeli and Arab positions on their principal disputes continue to be set in concrete. At best there is tacit acceptance of most elements of the stalemate. Our minimum objective is to prevent this stalemate from blowing up; if it persists, it might gradually take the shape of a modus vivendi. Our maximum present objective is to find ways to dissolve some of the most dangerous of its aspects. The problem is to encourage the modus vivendi without stimulating Arab-Israel tension by what we do or fail to do.
4.
Israeli and Arab capabilities to resist unpalatable compromises continue high. Neither side is particularly responsive to initiatives by the U.N. or by individual nations, including the U.S. In 1964–65 the U.S. should be relatively well placed to use its limited leverage, however. Israeli confidence in U.S. security assurances has risen. Some Arab confidence in the U.S. has been demonstrated and Arab reactions to several difficult developments (e.g., Jordan waters diversion, Eshkol visit) have proved containable. The U.S. can expect to have an active administration with a strong mandate.
5.
It follows that certain limited initiatives may be possible.

On the Arms Race:

1.
Our objectives are
a.
To concentrate above all else on preventing the proliferation of nuclears (which are within the capability of Israel in 2–4 years), and
b.
To resist further rocket programs and thus impede the spread of nuclear delivery systems and associated weaponry.
2.
In working toward these objectives, we should
a.
Press on urgently with efforts to bring Nasser to self-denial of further rocketry and to IAEA inspection of any reactors. He would find this a good deal if it resulted in blocking rocketry and nuclears in Israel. This effort with Nasser should be the early business of our new Ambassador, and perhaps of a special Presidential emissary. After the election, it might call for a visit to Egypt by the Secretary of State or the Vice President, followed perhaps by a Nasser visit to the U.S. Hope of success in this effort would rest on maintenance of effective political and economic relations with Nasser.
b.
While working on Nasser, continue pressing against the Israeli rocket program and registering our unalterable opposition to any Israeli activity in the direction of nuclear weaponry.
c.
Exploit any breakthrough with Nasser to get categoric equivalent assurance from Israel.
d.
Consult with Britain, France, Germany and, as necessary, other Allies on cooperative actions to impede Israeli and Arab development of rocketry or nuclears.
e.
Consider a possible understanding with the Soviets on mutual denial of assistance in nuclears and rocketry to Israel and the Arabs.
3.
There are also dangers in the conventional arms race. We should be alert to targets of opportunity to restrain and reduce this competition.

Regarding Refugees:

We see no prospect in 1964–65 for another major refugee initiative. Without some U.S. effort, however, the refugee issue could become more troublesome than it is. We can usefully pursue the following limited objectives:

1.
Follow up the PCC property identification report by urging Israelis to take some initiative now to accept applications from individual Arabs for settlement of property claims and to enlarge possibilities for the reunion of families. A small office might be attached to the PCC to facilitate this process.
2.
Set the stage for expansion of the PCC to five members, leaving the door open for ultimate U.S. withdrawal.
3.
As proposed from the 1950’s onward, begin devolution of UNRWA to national units working under supervision of individual host states. As a two-year process, this might start with an agreement, to be sought by the UNSYG strongly supported by the U.S., with the U.A.R. to take over administration of relief and works in the Gaza strip.
4.
Make some cut in the U.S. contribution to UNRWA for FY-1966, as a means of pressing the SYG and UNRWA to tackle rectification and reduction and look to national management of relief and works.
5.
Accept a two-year extension of UNRWA on the understanding that efforts would be made by the SYG along the lines of (3) above.
6.
Pre-empt the General Assembly situation by laying the groundwork for a middle-of-the-road resolution.

Other Issues:

1.
We should remain steady on our present course of supporting all works in consonance with the 1955 Unified Plan including leadership in finding finances for the Maqarin Dam.
2.
We should continue to urge maximum utilization of UNTSO including participation by the parties in ISMAC and EIMAC.
3.
We see no prospect of fresh initiatives in this period on such other questions as boundaries, boycott, and freedom of navigation.
  1. Source: Department of State,NEA/IAI Files: Lot 69 D 492, POL 22/1, Arab-Israel Dispute, May–June 1964. Secret.
  2. The attachment is unsigned and undated. A copy with the notation “Recommendations Adopted by Participants in Airlie House Discussions in Final Session, June 14,” is filed with a record of the discussions described in Talbot’s covering memorandum, which were held June 12–14 at Airlie House in Virginia. (Ibid., NEA/IAI Files: Lot 70 D 304, Airlie House Discussions, June 1964)