492. Memorandum From the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Allen) to the Acting Secretary of State1

SUBJECT

  • Sale by Canada of F86’s to Israel and Related Developments

Discussion:

Ambassador Merchant reports that the Canadian Government now appears disposed to proceed with the sale of F86’s to Israel in accordance with the arrangements worked out with the Secretary before his departure.2 He requests approval by telephone of a top secret letter which he would deliver to Pearson confirming these arrangements (Tab B).3

We believe it important to the position of the West in the Near East to avoid creating the impression among the Arab States of a definite switch in Western policy toward support of Israel against the Arabs. The withdrawal of the Aswan Dam offer, followed quickly by substantial arms sales on the part of Canada, the U.S. and France, together with announcement of Operation Stockpile, could convey this impression. We believe that the West cannot afford public announcement of what will appear to be a coordinated series of moves. At the same time, we do not wish to cast aside all of the work which has gone into persuading the Canadians to release F86’s to Israel. Also, it is probably desirable to proceed with the announcement of Operation Stockpile, properly timed, both because of the deterrent effect which may ensue and the considerable [Page 887] possibility of a leak now that the project is fairly widely known.

The attached telegram (Tab A)4 to Ottawa is intended to accomplish the above purposes and authorizes Ambassador Merchant to explain the situation to Pearson emphasizing our concern over publicity. We would also concert with the British in an effort to stop the proposed large French sales to Israel.

For security reasons we believe it advisable to explain the situation to Ambassador Merchant by telegram.

Recommendations:

1.
That you telephone Ambassador Merchant stating only that a telegram is being sent immediately replying to Ottawa’s telegram 40 and 41 (Tab B).
2.
That you approve attached telegram to Ottawa (Tab A).
3.
That we coordinate with the British in an effort to block or at least delay in NEACC the proposed large French shipments to Israel; specifically, the 40 Sherman tanks, 60 light tanks, 175–75mm guns and the unspecified number of 155mm guns.5
  1. Source: Department of State, NEA Files: Lot 59 D 518, Omega—Operation Stockpile 1956. Top Secret. Drafted by Burdett and concurred in by Murphy, MacArthur, and Elbrick. Initialed by Hoover, indicating his approval.
  2. Secretary Dulles and President Eisenhower left Washington the evening of July 20 to attend the meeting of the Presidents of the American Republics at Panama City. Dulles returned to Washington on July 29.
  3. Tab B is Documents 487 and 488.
  4. Tab A is telegram 37, infra.
  5. Geren reported to Burdett on the proceedings of the July 24 NEACC meeting: “At the NEACC meeting Mr. Lippincott said that we wished to consider further the strategic items. The British also took the same position. After the meeting de Laboulaye rushed around to Lippincott and Willie Morris saying ‘We must know the real attitude of your governments within the next 24 hours or else my Ambassador must call for a meeting of the Ambassadorial Committee. As we all know, this would be futile.’” (Memorandum from Geren to Burdett, July 24; Department of State, Central Files, 480.008/7–2456) The minutes of the NEACC meeting are Ibid., G/PM/ MC Files: Lot 66 D 428, NEACC Minutes M–42 to M–72.