P SECRE! heme fh eek RK 4 BS gel sutE,he . Ly NSC Planning Board. Thus the state of Israel was in fact the darling of Jewry throughout the world, and world Jewry was a formidable force indeed. The views of the Joint Chiefs of Staff and of the Department of Defense on the subject of a settlement, as well as the letter which Secretary Dulles had received from Secretary Quarles in December (peremptory in tone), were simply not realistic. This Ad- ministration had gone further in trying to moderate the policy and position of Israel, and to show greater sympathy for the Arabs, than any previous U. S. Administration. On the other hand, there were certein courses of action which simply could not be followed, from the domestic political point of view. When the state of Israel had been established, both the Department of State and the Department of Defense had been in agreement that the establishment of Israel, in the circumstances, would inevitably lead to the situation in the Near East which now confronts us. Nevertheless, the warnings and advice of the Departments of State and Defense had been ignored. The best proof of the potency of international Jewry is ‘ that the Soviet Union, while constantly hinting to the Arab states that it will agree to help the Arabs to dismember Israel, has never. actually come out publicly with such a statement of support. The Soviets rely on hints, and they are playing the game very cautiously despite the great prize which they could win in the Near East if they supported the destruction of Israel. Accordingly, if the USSR doesn't dare to tackle this situation forthrightly, other nations must approach the problem with care too. Among all of our allies, not a single one would support the policy toward Israel which the Arabs are demanding. There is no situation in the world to which this Administration has given more thought than the Arab-Israeli dispute. There are very grave problems to be faced. There is no greater danger to U. S. security. Perhaps, indeed, the USSR will ultimately get control of the Near East; but, in any event, there has been no tendency whatsoever to minimize this danger in the State Department over the last ten years. Secretary Dulles went on to say that he had searched his mind for a formula for ending Arab-Israeli hostility which had some prospect of sticking. In fact, he had pre- sented one such formulas in his speech of August 26, 1955. Neither side--the Arabs or the Israelis--would budge one inch from its position in order to approach the terms of this particular formula. The situation was tragic and disturbing. We are confronted with a clear threat to the security of the United States, and we cannot present a clean-cut practical solution. Accordingly, we are in fact reduced to following the old British formula of "muddling through”. For aa Vooe Lave Beate&= =), OE Lote ae this formula it can at least be said that it has worked after a fashion and has enabled us to maintain friendly relations thus far with Seudi Arabia, Iraq, Jordan and Lebanon. In short, while the situation was precarious, it was not presently desperate. "f°. DOP SECRET

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