867N.01/7–349: Telegram

The Ambassador in Israel (McDonald) to the Secretary of State

top secret

511. Shiloah of Foreign Office, who returned Tel Aviv June 30, was at residence my request two hours July 1. Ford also present. Re Washington impressions Shiloah said:

Was gravely troubled and perplexed by “widespread and deep suspicion in USG of Israel’s purposes”. US and Israel have same basic purposes in Middle East—(1) stability, (2) peace, (3) prosperous and secure Israel and Arab states. Third objective impossible without achievement of first and second. USG and Israel differ only about means, yet their relations poisoned by USG’s suspicion of Israel. Arab states are openly rearming, pledging renewal of war and refusing discuss terms of peace, but Israel alone is charged by USG as potential aggressor. Cause of this discrimination must be found and eradicated. Obviously prevailing suspicion not primarily matter of USG personalities. What can Israel do to end USG suspicions? (Close Shiloah’s main statement)

In reply I admitted frankly fact and gave list reasons USG fears of Israel’s purposes. I stressed that Israel’s failure yield on issues refugees or frontiers and its evident superior military strength were basic causes. Ford pleaded eloquently that Israel make large and definite refugee offer.

Replying Shiloah said pressure on Israel for refugee offer was “easy way” for us and if granted would solve nothing, but only prepare way for another similar demand on Israel later. He then repeated his personal suggestion made “towards end” of conference in office Assistant Secretary June 18 that a small committee immediately draft general but comprehensive plan refugee settlement.1

Re Department Gaza suggestion (Deptel 399 June 24 [25]) Shiloah expressed warm appreciation and said Israel will press bilateral negotiations. He fears failure however “unless Cairo ceases feel that USG on theory territorial compensation, supports transfer southern tip Negev to Egypt”.

Comment: Shiloah’s anxiety reflects grave concern of government here and its resentment at “injustice of USG’s suspicions”. Department’s willingness sponsor Israel-Egyptian negotiations is, I think, most helpful move in long time. Its success would loosen key log in both refugee and territorial jam. End comment.

McDonald
  1. Mr. Shiloah at this point was referring, presumably, to the meeting with Acting Secretary Webb on June 17. Mr. Webb’s memorandum of that conversation did not include Mr. Shiloah’s suggestion as set forth in this paragraph.