41. Memorandum of a Telephone Conversation Between the Secretary of State and the Assistant Secretary of State for Near Eastern and South Asian Affairs (Rountree), Washington, October 12, 1958, 10:40 a.m.1
TELEPHONE CALL TO MR. ROUNTREE
Re military assistance to Israel. Sec said he had approved all except the one point where he was reluctant to go along. The recommendations2 are first that we agree to license the helicopter; Sec agreed. Second, the assistance to Israel in the financing or procurement of tanks; Sec agreed on financing but not sure procurement. Sec said we have in the past, or at least he had, perhaps wrongly, given them the impression that we were somewhat more liberal in economic approach than we would be if they did not have such heavy military burdens. No direct connection at all but in the past we have given the economic assistance and it does not make much difference which pocket it goes into. Sec said it was important to make clear we do recognize that they do have heavy military burdens without which they could get along without economic assistance from us. We are not insisting that they cut out the military because we recognize it necessary within limitations. There is a relationship there we accept in the broad sense; we never accepted it in the narrow sense of $20 million more for tanks, therefore we [have?] given $20 million more economic aid; a rather fine line of distinction. Sec said he found it difficult to see why we require them to spend $20 million for Centurions when they could buy the same number of M–47s for $8 million. Sec said he wondered how much real difference it makes whether we can maintain in this respect a separate position from the UK; Sec said he gathered Egypt had launched an all-out attack on us. Sec discussed what the status of these tanks were. Sec said he thought they were tanks manufactured in France by the French according to US specifications as part of offshore procurement plan. Sec said they were going to get the tanks—it was a question of spending more money than they needed to. Sec said the important thing was to know whether they were American tanks, offshore procurement tanks, or what. Sec said he would like to defer action until we know the status of the tanks.