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                                 ISRAEL                            1091

Israel provided latter assumes refugee burden, since area wld ulti-
mately become administrative and financial liability to Egypt. Azzam
Pasha 2(Cairo A-565 May 16-3 rptd you) expressed similar views.
Emb considers it probable Egyptian Govt wld reserve final decision
until formal peace negots and wld use as bargaining point.
                                                                  WEBB

  2 Secretary-General of the Arab League.
  SNotprinted.

501.BB Palestine/6-649: Telegram
    The Acting Secretary of State to the Legation in Switzerland

SECRET                             WASHINGTON, June 6, 1949-3 p. m.
  Unpal 134. For USDel, Lausanne. In recent conversation in Dept
Bunche expressed view that Middle East arms embargo should be
lifted upon conclusion Syrian armistice. His proposed res (Palun 95)1
intended to have this effect. In formulating its position on this question
Dept would be interested in your views as to whether lifting the
embargo would have any serious effect prospects achieve peaceful
settlement Palestine conflict.2
                                                                   WEBB

  Identified also as telegram 182, March 24, from Beirut, not printed, but
see
footnote 1, p. 869.
  2Mr. Ethridge, in reply on June 8, stated: &quot;USDel believes SC should
dis-
continue certain provisions of outstanding resolutions including arms embargo
following conclusion IsraeliPSyrian armistice agreement. USDel does not believe
such action would have serious effect on peaceful settlement. USDel hopes
it will
be possible avoid prolonged debate in SC on lifting embargo and that it will
be
handled as discontinuance of one of several provisions. (telegram Palun 187
from
Lausanne, 501.BB Palestine/6-849)
  The following day, the United States Mission at the United Nations gave
its
view that &quot;it would be most unwise precipitously and completely to lift
ME arms
embargo in near future (re Unpal 134). A dangerous armaments race might
result if all controls are taken 'off by SC and there is no agreement among
prin-
cipal potential arms suppliers. Arms sales should someh'ow be limited not
only
with regard -to war potential but also having in mind economic burden and
need
for refugee assistance and economic development. There are too many warning
signals to overlook, including current tense situation at demilitarized Govern-
ment House, the frequent boastful military attitude of Israelis expressed
in New
York, Washington, and Israel. Some Arabs also ,obviously champing at the
bit to
secure arms and assume military posture. It seems almost certain that an
uneasy
situation will prevail in ME for long period, even assuming reasonably successful
outcome of Lausanne discussions.&quot;
  The Mission also gave its 'opinion that limited arms for police forces
might be
made available, noting that Mr. Bunche had approved at least one Egyptian
application to purchase sidearms for police purposes (telegram 693 from New
York, 501.BB Palestine/6-949)..
  Regarding the difficulties at Government House, see footnote 1, p. 1098.

 
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