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wi coercion. Our posts pointed out, and the Depart- will be affected within the next month. It also ment of State fully concurs, that incorporation of this amendment would without doubt have. the effect of making the task of eliminating the Arab poycott of Israe] more difficult, and would play . into the hands of the Soviet bloc which seeks to exacerbate Middle East tensions to further its penetration of the area. , Our Government has repeatedly made clear, publicly and through diplomatic channels, its support for freedom of transit through the Suez Canal, as well as our opposition to the Arab boy- cott against Israel. These undesirable restric- tions, aS you are aware, are an outgrowth of the Palestine problem, which continues to cause tensions between Israel and the Arab states and to perpetuate unfortunate circumstances such as those whereby nearly one million Arab refugees are not able to return to their homes. It is our Government’s firm conviction that an Arab-Israel ‘settlement will one day come, not by coercion but by a spirit of accommodation on both sides. As progress is made in that direction, such problems as boycotts, restrictions and homeless refugees will disappear. Incidentally, there appears to be considerable gnaccurate information surrounding the Suez Canal transit question. For example, it is said that American ships are being “barred” from the Canal for having called at Israeli ports. As & matter of fact, not a single American ship has thus far been denied passage through the Canal. Out of a total United States maritime fleet of 498, only 23 ships have been placed on the so-called Arab black-list, because of prior calls at Teraeli ports. These 23 are denied entry at Arab ports but there has been no instance of denial of their transit of the Canal. In this connection you may have read in the press that ‘American labor unions in New York have set up picketing against the United Arab Republic ship Cleopatra. The purpose of the picketing is to impel the United Arab Republic to abandon its restrictions against Isracl shipping. Unfortunately, this objective is not being served. Asserting their determination to resist such pres- sures, the Arab countries are establishing counter- picketing against American shipping. This reac- tion against coercion, which ig not unnatural in ~ young emerging states, means in effect that at least 20 American ships with 1,000 seamen aboard ~~ Moy 23, 1960 means that for every Arab ship-Americans.may______ 7 boycott some 80 American ships may be subjected to Arab boycott. As can be seen, ontside attempts, no matter how well intentioned, to compel one or more of the Middle Eastern countries to follow « certain behavior have wide repercussions. I might add that while resentments agsinst such pressure in Arab-Israel matters have direct repercussions On our interests in 10 Arab countries from Morocco to the Persian Gulf, the sympathy for these 10 pations is inevitably widespread throughout Africa and Asia. This is 0 critical juncture in the history of those two continents. Just when the young Afro-Asian nations and particularly the Arab nations appear for the first time to be becoming aware of the fact that the Communists have been falsely posing 85 patriotic nationalists, it il] behooves us, through an appearance of plac- ing “strings” on our aid, to incur the deep resent- ment or hostility not only of the 10 Arab nations but of their natural friends, the states of Africa and Asis. In fact, we do not believe it is in Israel’s long-range interest that such enmity be aroused and choosing of gides precipitated throughout the Afro-Asian region. In our view, avoidance of coercive tactics against Israel’s neighbors is in Israel’s interest. In just over a decade, Israel has quadrupled its exports. Its unfavorable trade balance has steadily been reduced. Israel’s Gross National -Product per capita is now more than twice that of any of its neighbors and even exceeds that of Netherlands and Italy. While foreign funds from various sources at an average rate of nearly $1,000,000 per day have been partly responsible, primary Te sponsibility for this progress lies with the Israeli people themselves, their ingenuity, industrious- ness, and devotion to purpose. Parenthetically, I should note that our government has been con- sistent in its support to Tsracl. We have extended to Israel with its population of under 2,000,000 a sizeable total of various types of assistance, in- cluding PL 480. Such assistance, a8 you know, is continuing. Conditions have thus far been sufii- ciently favorable to allow Israel to make great strides. In our view it would be a grave mistake to have that progress disturbed by actions which - can only stir up area tensions to Israel’s detriment. As you know, it is the view of our Government that- the tensions. of the ‘Middle East can more - 833 bey eo iy a ia i: : ge aan 7 ab .° 5 it. 1% ah z if “¢e Fal 4 i a. ‘ . be Map Hn ARMS ahd a pibegt