Foreign Relations of the United States, 1969–1976, Volume XXIV, Middle East Region and Arabian Peninsula, 1969–1972; Jordan, September 1970

35. Memorandum From the Executive Secretary of the Department of State (Eliot) to the President’s Assistant for National Security Affairs (Kissinger)¹

Washington, December 6, 1972.

SUBJECT

• Proposal for a Joint US/Israeli Desalination Development Program

Summary

At National Security Council direction a study was undertaken in 1969 on the desirability of U.S. participation in a large-scale desalting plant in Israel. The study concluded that further research was needed and, therefore, the U.S. should not participate in the project. This recommendation was endorsed by the President and in turn conveyed to the Government of Israel. Since then, Israel has made progress in desalting technology and its overall program has reached a stage where a joint development program including construction of a large-scale desalting facility could be mutually beneficial. This memorandum recommends that such a joint program be undertaken to be funded from the appropriation provided for this purpose under Section 219 of the Foreign Assistance Act of 1961 as amended.

Background

National Security Study Memorandum 30 of March 19, 1969,² requested a study of the economic and technological aspects of large-scale desalting in the Middle East and of proceeding with the construction of a 40 million gallon per day (mgd) desalting plant in Israel. This proposal involved the application of then existing technology to a much larger scale facility than had ever been built before. The response to NSSM 30³ pointed out the risks in such a significant scale-up, the unlikelihood that such a project would lead to a significant reduction in the cost of water, and that new technology being developed by the Department of the Interior, Office of Saline Water (OSW) could lead to a significant reduction in the cost of desalting water.

National Security Decision Memorandum 32 of November 6, 1969,⁴ advised that the President had decided that: “Budgetary considerations apart, the Administration believes that intermediate experimentation with new technology is necessary before a large operating plant can be built anywhere. The Administration believes that there are compelling advantages to doing this work in the U.S.” However, “The Administration is keeping open the possibility of later cooperation in the Israeli project.”

Concurrent with this Administration action, the Congress added Section 219 to the Foreign Assistance Act of 1961 as amended (Attachment A) and pursuant thereto authorized and appropriated $20 million to finance U.S. participation in an Israeli desalting project. The funds were provided “for the purpose of improving existing and developing and advancing new, technology and experience in the design, construction, and operation of large-scale desalting plants of advanced concepts which will contribute materially to low-cost desalination in all countries …” and, if it is determined to be feasible, to participate in the development of a large-scale desalting prototype plant to be constructed in Israel. The legislation contained safeguards to insure the full availability to the U.S. of any research and development findings. Congress also stipulated that no part of the appropriated funds could be used for construction until the proposed project had been reviewed by the appropriate Congressional committees.

In accordance with NSDM 32, the Government of Israel and the appropriate Congressional committees were advised that the Administration did not intend to go ahead with an Israeli project at that time. Nevertheless, Israeli and Congressional interest remained high and each year Section 219 has been carried forward and the funds reappropriated.⁵

Discussion

In February 1971, the Government of Israel presented to A.I.D. a proposal to establish a partnership venture between the U.S. and Israel to construct a prototype dual-purpose power generating and desalting plant at Ashdod, Israel, with a capacity of 11 mgd. The plant was to employ a horizontal tube, multiple effect process (HTME) technology being developed by Israel Desalination Engineering, Limited, a wholly-owned government corporation. It is a well-known and tested process and by itself not a significant technological advancement. However, Israel proposed using aluminum tubing in the plant, and the application of this low-cost material did hold promise of significantly reducing the cost of desalted water.

A.I.D., utilizing the expertise of OSW, has reviewed the Israeli proposal. A team of A.I.D. and OSW engineers went to Israel in July 1972 to examine the Israeli facilities and its research program in detail, and further technical discussions were held in Washington during late October 1972. The understanding reached by the technical staffs which participated in these discussions is attached (B).

In summary: The Israelis sought U.S. financing for the one mgd pilot plant at Elat now under construction. If operating results from this point are satisfactory, the Government of Israel proposed to proceed directly to design and construction of the 11 mgd prototype plant. An advance commitment to this plant was also sought. OSW representatives have been concerned with the limited amount of operating experience in aluminum tubing and also maintained that, due to the large scaling-up involved in going from a 1 mgd to an 11 mgd plant, there should be an intermediate testing phase. Agreement was finally reached at the recent Washington meetings by staff representatives that there would be an intermediate stage involving the construction of a two-effect test module at the OSW test facility in San Diego, California. OSW considers that, with an expansion of the Israeli program to include module construction at San Diego, sufficient data would become available on scale-up to confirm design assumptions for an 11 mgd plant and, thus, allow its construction withour major risks. Furthermore, as many of the ancillary facilities are already present at San Diego, it is expected that construction of the module there will involve cost-savings over construction in Israel.

Israeli engineers tentatively estimate the total cost of the full program at $32 million (including the test module in San Diego). The U.S. share would be approximately $15 million. Of this, we estimate that approximately $2 million would be expended during USFY 1973 and USFY 1974.

The program provisionally agreed to by the U.S. and Israel technical representatives generally complements work being undertaken by OSW. OSW has done some work with aluminum tubing, but the emphasis in the OSW program has been on the vertical tube evaporation/ multi-stage flash (VTE/MSF) process, which is believed to represent a significant advance in process technology over the Israeli process.⁶ OSW does not, however, use aluminum tubing, but more costly copper-nickel due to its corrosion resistance. The Israeli development program has taken a different approach. It has refined existing horizontal tube technology within established limits of temperatures, pressures and other design parameters and concentrated its efforts on the development of a design suitable for the use of cheaper aluminum tubing.

Participation in the joint program would provide the U.S., and through it, U.S. industry which would be involved in module construction, with access to the Israeli technology and operating experience in the design and use of aluminum tubing, the development of an alternative competitive desalting technology, and, most importantly, through the two-effect module program at San Diego, an opportunity to test Israeli equipment extensively over a wide range of conditions and, thereby, explore the possible blending of Israeli materials developments with U.S. process advancements.

Based on the experience gained in the past three years by the Israelis with their process and desalting technology development in the U.S., we believe that it is in our interest to embark with the GOI on the cooperative research and development program proposed by the GOI. We believe that with the inclusion of the intermediate testing phase at San Diego the design technology will be sufficiently developed to justify participation. Through this joint effort we expect to obtain technical and operating experience which complements current U.S. programs and which could significantly advance the realization of a process for the production of low-cost desalted water. We would be acting in accord with the expressed intent of the Congress as set forth in Section 219 of the Foreign Assistance Act. We would be keeping faith with our repeated pledge to Israel to work closely with it in this field.

Therefore, we, together with A.I.D. and the Department of the Interior, recommend approval of our proceeding to conclude a formal agreement with the Government of Israel and, subject to Congressional consultations, to commit funds under Section 219 of the Foreign Assistance Act to finance the U.S. share of the joint development program outlined in the Memorandum of Understanding signed November 3, 1972.

RH Miller⁷

1. Source: National Archives, Nixon Presidential Materials, NSC Files, NSC Institutional Files (H-Files), Box H–212, National Security Decision Memoranda, NSDM 32. No classification marking. Attachments not printed. In an October 6 telephone conversation, Kissinger told Morton that a $10 million project was “symbolically of great interest” to the Israelis and that he should meet with Rabin. (Ibid., Kissinger Telephone Conversations, Box 16, Chronological Files) On October 18, Morton notified Kissinger that he had met with Rabin regarding Israeli plans for desalination and their request for a U.S. commitment of $10 million in support of this program. He included a timeline of significant decisions regarding desalination in Israel. (Ibid.)
2. Document 5.
3. See footnote 3, Document 9.
4. Document 14.
5. The funds have been carried forward through FY 72. However, they are not included in the current modified Continuing Resolution under which A.I.D. now operates. With passage of a regular FY 1973 A.I.D. appropriation, it is expected that funds will again be reappropriated. No obligation for the proposed project can be made until this occurs. [Footnote is in the original.]
6. At this stage, the OSW VTE/MSF program is ahead of the Israeli program as a four-effect module of a 12.5 mgd plant is scheduled to begin operations in mid–CY 1973, which is at least 18 months sooner than the two-effect module proposed in the joint program. [Footnote is in the original.]
7. R.H. Miller signed above Eliot’s typed signature.