THE SUEZ CRISIS- -A TEST FOR THE USSR'S MIDDLE EASTERN POLICY (REFERENCE TITLE: CAESAR V-A-56)

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Approved for Release: 2018/08/29 C00966205 Peilz-SECJI.E.T . V 3 January 1957 SC 07269/56 Copy No. (3) SOVIET STAFF STUDY THE SUEZ CRISIS--A TEST FOR THE USSR'S MIDDLE EASTERN POLICY (Reference title: CAESAR V-A -56) Dec:ETf Eo. ' V4; 3al.e: 0 3 OCT 1978 13 s C By: 00 Office of Current Intelligence CENTRAL INTELLIGENCE AGENCY This document contsinA classified information affecting the national security of the United States within the meaning of the espionage laws, US Code Title 18, Sections 793, 794, and 798. The law prohibits its trAnsmission or the revelation of its contents in any manner to an unauthorized person, as well as its use in any manner prejuclical to the safety or interest of the United States or for the benefit of any foreign government to the detriment of the United States. Wzo,;7/7 Approved for Release: 2018/08/29 000966205 Approved for Release: 2018/08/29 C00966205 --T-eft-SEGRE.1 Soviet Staff Office of Current Intelligence Reference Title: CAESAR_V-A-56 SOVIET STAFF, STUDY The Suez Crisis- -A Test for the USSR's Middle Eastern Policy This study is a working paper. It attempts to identify the major premises, motivations and objectives of Soviet policy toward the Middle East since the spring of 1955. It is circulated to analysts of Soviet affairs as a contribution to current interpretation of Soviet policy. This particular study is part of a series`prepared under the general title "Project CAESAR", designed to ensure �the systematic examina- tion of information on the major aspects of Soviet affairs. OtZEVIVICRI 5';0. CL:211.11 In Class. Claa:,c?.t!io TS S C b:%tPh OCi 1978 Kta!o: fly: OZ- 19913-416C44E-71 Approved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 -Top SECRLIL THE SUEZ CRISIS--A TEST FOR THE USSR'S MIDDLE EASTERN POLICY Since the beginning of the Soviet Union's aggressive diplomatic offensive in the Middle East in the spring of 1955, Soviet policy has sought to combine efforts to stimu- late and exploit anti-Western ultranationalist pressUres in the Arab world with attempts to forestall the possibility of Western military intervention in the area, which the Soviet leaders probably realized would be increased by their new pro-Arab policy. The Middle East crisis precipitated by Nasr's nationalization of the Suez Canal Company which cul- minated in the Israeli and Anglo-French attack on Egypt con- fronted the Soviet leaders with the choice of accepting the incalculable risks of direct Soviet intervention on Egypt's side or acquiescing in the rapid destruction of the Soviet- equipped Egyptian armed forces and the Nasr regime--the main instrument of Soviet influence in the Near East. How- ever, subsequent events, particularly the divergence between American and Anglo-French policy, enabled the Soviet leaders to escape this dilemma and offered new opportunities for in- creasing Soviet prestige-and influence in the Middle East. Basic Motivation and Aims of ,Soviet Middle Eastern Policy The timing and motivation of the USSR's intervention in Middle Eastern affairs stemmed in part from the desire of the Soviet leaders to counter the major diplomatic defeat represented by their failure to prevent the entry of a sovereign West Germany into the NATO alliance. The ratifica- tion of the Paris agreements by the French National Assembly at the end of December 1954 brought to a close Moscow's five- year battle to block Western efforts to incorporate a re- armed West Germany into the Western defense system. The principal objective of the Soviet offensive in the Middle East was to outflank the NATO alliance and strike at the foundations of its strategic power by depriving its members of access to the oil fields, military, naval and air lases of the Middle East, and by cutting the vital communications link between Europe and Asia at Suez. A corollary aiM was to encircle the members of the "northern tier" alliance in the Middle East and to prevent the extension of this Western- sponsored defense system southward to include additional Arab states. The politico-strategic concept underlying Soviet inter- vention in Middle Eastern affairs envisaged the emergence of a neutral bloc of ultranationalist, anti-Western Arab -1-- (b)(3) pep-sEGSZE_T_ .ImisiApproved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 -T-E3011-SEGREI states which, with full Soviet support, would lead to the complete destruction of traditional Western influence and control from Morocco to the Arabian Sea. The Soviet leaders found a ready instrument for advancing these Aims in the ultranationalistic t chauvinism and zenophobia which was sweeping the Arab world. They recognized, however,-that this policy of exploiting Arab nationalism as a means of striking at the political, economic and military strength of the Western powers would carry increasing risks that the West might attempt to restore its deteriorating posi- tion in the Middle East by forceful action. They also realized that their new pro-Arab line would inevitably ag- gravate the Arab-Israeli conflict and that an outbreak of hostilities between Israel and its Arab neighbors would almost certainly lead to strong Western intervention. The USSR attempted to evade this dilemma by reassur- ing the Israelis, on the one hand, that it entertained no hostile intentions toward their security and interests and, on the other hand, by counseling the Arabs to exercise patience and restraint. ,Until Israel attacked Egypt at the end of October 1956, the Soviet government maintained outwardly correct diplomatic relations with Israel. Even during the period of high tension in the Near East in July 1956, the USSR contracted to supply Israel with 40 per- cent of its crude oil re uirements over the next two ears. the USSR regarded the Arab-Israeli dispute as "quite secondary" in comparison with freeing the Arab countries from the "imperialist yoke." At this same time, Soviet foreign minister Shepilov, during his tour of the Near East, was urging the Arabs to avoid rash actions and saying that war must be avoided at all costs to prevent Western intervention. First Phase of Soviet Intervention in the Middle East Moscow's search for an opportunity to mount a counter- offensive against the West quickly focused on the Middle East situation which had been brought to a new crisis by two events in February 1955. The first was the sharp ag- gravation of historical and dynastic rivalries in the Arab world produced by the conclusion of the Turkish-Iraqi alliance on 24 February. The second was the threat to Colonel Nasr's position as leader of the Egyptian revo- lutionary regime posed by the heavy Israeli attack on Egyp- tian forces in-the 'Gaza area on 28 February. -2- -speP-sEpGRE.1. Inimmims1111111111Approved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 -TOP-SEGRET The turning point of the USSR's Middle Eastern policy was marked by an abrupt shift in March 1955 toward an anti- Israeli and pro-Arab position in Soviet propaganda. Moscow also made an arms offer to Syria at this time--the first offer of military aid to an Arab state. -rem' The Soviet Foreign Ministry statement of 16 April 1955 was the first formal pronouncement regarding the new orien- tation. It firmly aligned the USSR on Egypt's side of the dispute within the Arab world by offering Soviet support for those governments which opposed the Turkish-,Iraqi alliance. It pledged to "defend" their freedom and independence and warned that the USSR would take this issue to the United Nations if the alleged Western pressure to induce other Arab states to join the Baghdad pact persisted. These opening moves were followed by the first arms offers to Egypt which began in May, initially in response to an inquiry by Nasr, and were repeated in June. They were accompanied by offers of economic assistance, including an offer to assist in building the Aswan High Dam. Shepilov, then editor in-chief of Pravda, reportedly repeated the arms offer when he attended the Liberation Day celebration in Cairo in the latter part of July, and renewed the Aswan dam offer. Soviet overtures in the spring and summer of 1955 were directed mainly at Egypt, but Saudi Arabia and Syria received similar offers. These were the three countries most opposed to the Baghdad pact. Egypt finally signed a five-year arms agreement with Czechoslovakia on 21 September 1955, Moscow Adjusts to:the Impact of the New policy Two clashes between Israeli and Egyptian forces in early November 1955 and an Israeli raid on Syria on 11 Decem- ber were followed by. a bitter attack on Israel by Khrushchev in a speech to the Supreme Soviet at the end of December. This was the first time since the Palestine armistice in 1949 that a top Soviet leader had taken such a strong public stand against Israel. The USSR had previously maintained a marked aloofness from the Arab-Israeli dispute. Khrushchev charged that Israel threatened its neighbors and had pur- sued a policy hostile to them "ever since it came into being." He implied that Israel was a mere tool of the "imperialist powers." �3- --T-e12-SECIZET. pproved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 TOP SE This denunciation of Israel reflected the impact which the first Soviet bloc arms shipments to Egypt had on the Near Eastern balance of power. The prospect of a rapid strengthening of Egypt's military position alarmed Israel, exacerbated border friction, and impelled Moscow toward a stronger and more unequivocal pro-Arab position. � With this prospect of increasing tension in the Near East, Moscow became concerned about possible Western moves to halt the arms race. A Soviet Foreign Ministry statement of 13 February 1956 condemned the communiqu�ssued on 1 February at the end of Prime Minister Eden's talks with President Eisenhower in Washington as a scheme for the United States and Britain to dispatch troops to the Middle East against the will of the people involved in violation of the interests of the Soviet Union. This statement was the first major Soviet attempt to commit the Western powers to the proposition that any great-power actions regarding the'Middle East must be taken within the framework of the UN Security Council, where the USSR could exercise its veto to block Western moves which it opposed. The statement specifically challenged the right of the three Western powers to act under the Tripartite Decla- ration of 1950. This Soviet insistefice that any Arab-Istgen- 42; crs must4-be. handled 1) -thene-dbrXtY7C6iiiiltkt The USSR also attempted to deter the West from taking independent action by a propaganda campaign last spring charging the West with "trying to create clashes between Israel and the Arab countries in order to provide a pretext for bringing their armies into this region." This public campaign to inhibit Western freedom of action was accompanied by private assurances to Arab governments of firm Soviet support in the growing tension with Israel. On the eve of the Bulganin-Khrushchev visit to Britain, the Soviet Foreign Ministry issued a statement on 17 April promising the "necessary support" for United Nations measures to strengthen peace in the Near East. This statement again denounced the Tripartite Declaration of 1950 and warned that �4� TOP'SfeRfs-T moNsimApproved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 Tor-sEc-Pegz the "Soviet government considers illegal and inadmissible..0 attempts to use the Arab-Israeli conflict for interference from without in the internal affairs of independent Arab states or for introducing foreign troops on the territory of the Near East." At the end of their talks with the British leaders, the Rus- sians agreed to wording in the final communique which pledged Soviet and British support for UN efforts to maintain peace in Palestine. Soviet propaganda to the Arabs treated this pledge as a Soviet diplomatic victory in that it induced Britain to abandon the tdea of unilateral interference in Near Eastern affairs. The USSR and Nasr's Seizure of the Suez Canal There is some circumstantial evidence that the USSR de- liberately attempted to create a situation in which the Western powers might decide to take the risk of withdrawing their offers of financial assistance for the Aswan dam proj- ect.. Since 1954, Moscow on many occasions had made known to the Egyptian government its willingness to help Egypt build the dam. As recently as 17 May 1956, Soviet ambassa- dor Kiselev reportedly renewed this standing offer with the observation that the USSR realized that the West might with- draw its offer of assistance in view of Nasr's recognition of Communist China the previous day. Shepilov is reported to have elaborated: on this offer during his visit In in mi 956. he Soviet foreign Minister offered a $400;000';"06 sixty-year credit to build the Aswan dam. One month later, however, Shepilov reversed his line by publicly playing down on 14 July the importance of the Aswan project and offering instead Soviet help for Egyptian indus- trialization projects. Four days after the United States had announced the withdrawal of its offer of a loan to help finance the initial phase of the Aswan project, A. M. Ledov- sky, counselor of the Soviet embassy in Washington, asked a �5� TOP-SEC-Rg-T- Approved for Release: 2018/08/29 000966205 Approved for Release: 2018/08/29 C00966205 5ECRFZ State Department official whether the American decision was not in fact based on the assumption that the USSR would not build the dam if the United States withdrew. The American and British announcements withdrawing their loan offers were followed by at least three denials-by Soviet spokesmen that the USSR had committed itself to support the Aswan project. Moscow, however, did not close the door to later negotiations for Soviet assistance and since that time has reportedly renewed its assistance offer. The USSR's first public reaction to Nasr's nationaliza- tion of the Suez Canal Company on 26 July came in the form of Khrushchev's advice to the West to adopt a "quiet ap- proach" to this problem, one which would soberly take into account "the new circumstances and the spirit of the times." Apparently anticipating a strong Western reaction, Khrush- chev asserted that "there are no grounds for the aggrava- tion of relations in the Mediterranean area and for the fanning of hostility between states over the Suez Canal.� Soviet officials evealed some nervousness over es ern reactions. The USSR's propaganda reaction to initial Western moves was relatively moderate in tone and seemed to indi- cate Moscow's concern to prevent the crisis from reaching a point of Western military intervention. � The Soviet leaders appear to have recognized immediately that the future course of Western actions on Suez would be largely determined by the United States position. In a con- versation with Secretary Dulles in London before the opening of the London conference on Suez, Shepilov said he was not attempting to split the Western Big Three but that if dif- ferences did exist between the United States and Britain and France, the "United States and the USSR together might find a way out of this crisis." Moscow was fully aware of the �6� lief"SEC-REZ. Approved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 feia-SEGREZ implications of the divergence between the US and its allies on the best way to handle the Suez' issue, ThisAawatelTdssi, which guided Soviet decisions throughout thecrisistlowas* madeexPiteitttoin-the adviceLvhich-Daputy Forel! ntlitt4Rpr, 4kwinxgave0 tcv-the4dettslonor_mxixaln:ama14-Francew,to.-wilnarawimaeM04040 from Egypt Zorin,4arned 4wthittOgrftteitOgeniMulaVey% would'AiwaillcvMeansPtoAelay theirwithdrawall4bdOtem him thatAtignecessaryAo keep American support itv is%superficiaL," London Conference August 1956 Shepilov's principal objective at London was to play for time and to forestall the adoption of any decisions which the West might use as a pretext for intervention. Moscow's un- certainty regarding the measure of Western disagreement on the question of using force to impose international control of the canal (b)(3) (b)(1) (b)(3) The Soviet Foreign Ministry statement of 9 August ex- pressed the position which the USSR adhered to at the con- ference. It distinguished between freedom of navigation through the canal "governed by the special convention of 1888" and the nationalization of the canal company, which it called a "perfectly lawful action following from Egypt's sovereign rights." It denied the competence of the London conference to authorize "any decisions whatever" affecting the canal. Shepilov rejected Secretary Dulles' plan to place the operation of the canal under an international board but backed an Indian proposal for a consultative international body which would not prejudice Egyptian ownership and opera- tion, onepliov aenounceo Tne appointment ()I -me live-nation menzies committee to present the Western plan to Nagr but advised the Egyptians that the committee should bt,AJUL- teously received and told that the conference documents would -7- TOP-SECRET Approved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 TCP-Sfetig-T be studied. He suggested that the period of study should be "spun out" without replying and without official comment on the London conference. A Soviet-Egyptian arrangement for sending Soviet pilots to Egypt for pilot service on the canal was worked out in London by Shepilov and All Sabri. Moscow radio early in September reported that Soviet ship pilots were preparing to leave for Egypt. The Soviet leaders apparently were well satisfied with the outcome of the conference. (b)(1) (b)(3) Moscow Prepares for the Next Round The Soviet government probably regarded the Suez Canal Users' Association plan which Eden introduced to Parliament on 12 September as a maneuver to force Egypt into committing a provocation for Anglo-French military action. Eden had warned that if Egypt interfered with SCUA, Britain and the others concerned "will he free to take such further steps as seem to be required either �through the UN or by other means for the assertion of their rights." Moscow's response to what it probably regarded as Brit- ish and French preparations for a military showdown with Egypt took the form of notes to London and Paris on 12 Sep- tember which warned again that the use of force against Egypt would carry the risk of an expanded war. The note to the British government stressed the dangers of using force in the atomic age, pointed out the damaging effect the use of force would have on Western interests in the Middle East, and appealed for a peaceful settlement of the dispute based on the United Nations Charter. These notes were followed by a Foreign Ministry state- ment issued on 15 September on the eve of the Users' Associa- tion conference in London. This statement went beyond pre- vious pronouncements by linking for the first time any -8- -T-Of2-rggr.12F-T. pproved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 ux=n--mrnm4Mq� P violation of the peace in the Near East in connection with the Suez crisis with the USSR's own security and by officially - calling for United Nations action. Bulganin chose the open- ing day of the London conference to reply to questions sub- mitted by Kingsbury Smith. He said the USSR was prepared to take part in the conference with the leaders of _Egypt, India, the United States, Britain and France to seek a solu- tion to the canal problem. In addition to its diplomatic and propaganda support, Moscow took other concrete steps to aid Egypt. To alleviate the acute shortage of canal pilots, it sent fourteen "volun- teer" pilots to Cairo on 15 September. Early in September, the USSR reportedly increased its arms shipments to Egypt and sent more technicians. At the UN Security Council sessions on Suez in the first half of October, Shepilov maintained his rigid op- position to the Western plan for international control but appeared to welcome confidential talks between Britain, France and Egypt as the best means of.gaining time and limiting Western freedoe of action. The Soviet Reaction to Israel's Attack on Egypt The USSR's actions in the second half of October follow- ing the UN Security Council's unanimous adoption of the six principles of a Suez settlement suggest that the Soviet lead- ers did not expect the outbreak of hostilities on 29 October. By mid-October, the Russians apparently estimated that the threat of Anglo-French military action had been almost com- pletely removed and that the USSR, by its firm support of Egypt's defiance of.Western demands, had considerably ex- tended its influence and prestige throughout the Middle East and Asia. They probably believed that the approval of the six principles and the initiation of talks between Egypt, Britain and France had placed Nasr in a strong position to conduct prolonged negotiations which would sharply limit British and French freedom to resort to force. �9� T-OP-SECREFT Approved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 A vi-----ompimppres.4� (b)(1) (b)(3) Soviet propaganda, which throughout the Security Council debate in the first half of October had warned against Anglo-French action and alleged American threats to use force, subsequently diminished both in volume and violence of tone. The initial reaction of the Soviet leaders was one of great caution. They appeared determined to do nothing which would commit them to any concrete action in a very confused and fast-moving situation. According to press reports, Khrushchev and Bulganin, attending a Kremlin reception for the visiting Prime Minister of Afghanistan on 30 October, told two Asian ambassadors that they were "gravely concerned" by the Israeli attack and thought that the matter should be immediately settled in the UN Security Council. The Soviet delegate to the Security Council supported a United States resolution in the 30 October meeting which called on Israel to cease fire and withdraw to its own borders and asked all UN members to refrain from using force in the area. Molotov attempted to sound out American intentions by suggesting to Ambassador Bohlen at the 30 October reception that the United States could have prevented the Israeli attack, adding that of course the United States had acted in collusion with Britain and France. When Bohlen denied this, Molotov said that Britain and France stood behind Israel and wished to punish Nasr for nationalization of the canal. The Soviet government was also careful to avoid making any commitments to any specific course of action in its first official pronouncement on 31 October. This statement merely condemOd the three-power attack and called on the Security Council to take "immediate steps to stop the aggressive operations" and "ensure the immediate withdrawal of the inter- ventionists from Egypt." �10� (b)(1) (b)(3) (b)(1) (b)(3) 11,P-SE-eff&T milApproved for Release: 2018/08/29 C00966205 (b)(1) (b)(3) Approved for Release: 2018/08/29 C00966205 FL77--"atft44.bmg- (b)(3) Moscow continued to temporize and play for time by send- ing letters calling for a conference (4,. unv JuaLuuuus pwww.cm 1.11 attack on Egypt and by delivering protests to Britain and France on 4 November against their closing parts of the Mediterranean and Red Seas to commercial shipping in violation of the 1888 Convention. The USSR also took immediate measures to avoid incidents with Anglo-French invasion forces. On 5 November, however, the day the first Anglo-French forces landed in Egypt, the Russians were ready to act, con- vinced apparently that the divergence between the United States and Britain and France was genuine and that the Nasr regime and its Soviet-equipped armed forces were threatened with destruction. Bulganin sent threatening notes to Britain, France and Israel which contained the warning that the Soviet Union was "fully determined to crush the aggressors and re- store peace in the East through the use of force." This language was a piece of calculated ambiguity in- tended to convey the impression that the USSR was making a threat of unilateral action against Britain and France unless they abandoned their action against Egypt. The Soviet For- eign.Ministry press officer later issued a "clarifying" statement that the "we" referred to "the Soviet Union and other members of the United Nations." The same day, Bulganin sent a proposal to President Eisenhower for joint action by American and Soviet forces, under UN authority, to halt the operations in Egypt. Shep- ilov sent a letter to the president of the Security Council setting forth a resolution embodying Bulganin's proposal. The council, however, refused to place the resolution on its agenda. -11- (b)(1) (b)(3) 15912-SEGRET. inimonApproved for Release: 2018/08/29 C00966205 (b)(3) Approved for Release: 2018/08/29 C00966205_ ifi/P-NWOWg-T- stifiwu surrender. the USSR assured Egypt of support in order to AubJ-stance and forestall any compromises or maar b auviber, All banri, told an American official in Cairo on 6 November that conversations with the Russians in Moscow and Cairo had convinced him that the USSR was prepared to "go all the way" even if it risked World War III. PruP49,1,KOPId that "the n:iiiiiand ':.creditvtiStwune USSR are already engagedIkoir4EgyptAgmbehalleAandlAhatietheo USSR "if needed lvill-�sureiyogagemiarr against0431411tWite-i& and France. Khrushchev, however., qualified this /statement # by adding that "now it is the-diplomatic battle whereskill and wisdom are needed." The Soviet party chief was en- couraged in his bravado by the Anglo-French declaration of a cease-fire in Egypt oi 6 November. _ _ The sequence of events, however, placed the USSR in a position to claim that Bulganin's threatening notes had com- pelled Britain and France to declare the cease-fire and that it was Moscow that saved the Arab world from imnerialigt aggression. Post Cease-Fire Phase The cease-fire opened a new phase in the Suez conflict and created new opportunities for Soviet moves to win fur- ther Arab favor. Moscow's immediate objective was to bring about by nonmilitary means the early withdrawal of the three-power forces from Egypt. It sought to increase pres- sure on the British and French and to impress the Arabs by announcing on 10 November that if the three powers did not withdraw, the "appropriate authorities of the USSR will not hinder the departure of Soviet citizen volunteers who wish to take part in the struggle of the Egyptian people for their independence." This was the first time since the attack on Egypt that the USSR had publicly threatened to �12� pproved for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 1N5V�SISC-44g-T- send volunteers to the Middle East unilaterally or take any action outside the framework of joint measures with other UN members. The fact that the Soviet leaders waited until it was reasonably certain that hostilities would not be renewed suggests that they hoped to avoid having to make a decision whether they would actually send volunteers. They probably estimated that, short of direct Soviet intervention, there was no way they could bring any appreciable military as- sistance to Egypt which would decisively affect the outcome of renewed fighting. The volunteer threat, therefore, ap- pears to have been largely bluff designed as a propaganda weapon to exert pressure on Britain and France. Yuri Zhukov, an editor of Pravda, reportedly told in early December that the threat to semi vulup�ee.m,. Lo bgyp was a complete bluff which the USSR would not be able to use again. The volunteer threat was followed by another round of notes on 15 November deklanding that Egypt be indemnified by Britain, France and Israel for material losses. The notes made clear that the USSR believes the UN Emergency Force will be unnecessary after the withdrawal of fnrpian fnrncaa By the end of November, Moscow had turned its primary attention to Syria, where it suspected that the Western pow- ers, along with Turkey and Iraq, were preparing to intervene to overthrow the present leftist regime in Damascus. A strong Soviet propaganda build-up designed to deter Western intervention was accompanied by confidential warnings, apparently intended to reach Western governments, that if Turkey should attack Syria, the USSR would immediately attack Turkey, which would mean the beginning of World War Moscow backed these diplomatic and propaganda maneuvers by concluding its first direct arms agreement with Syria the end of November. This deal will include jet aircraft and antiaircraft guns. Moscow agreed, moreover, to supply Syria with 160 Soviet training personnel but was not willing to provide technicians "to fight with the equipment" as requested by Syria. -13- "Teft--SFI Approved for Release: 2018/08/29 C00966205 '104 Approved for Release: 2018/08/29 C00966205 Future Policy in Middle East The outcome of the three-power action against Egypt has probably increased the Soviet leaders' confidence that they can proceed vigorously to exploit the Middle East situation without undue risk. They are moving ahead with a re-equipment program for Egypt's armed forces which may go beyond replace- ment of lost equipment. The Cairo government has provided the Soviet military attach�ith an estimate of future mili- tary aid requirements. The USSR will probably seek to make increasing use of Syria as an important instrument of its anti-West, anti- Israel policy. The first shipment of Soviet military equip- ment to Syria under the November arms agreement arrived in the port of Latakia on 13 December on a Soviet freighter and included at least ten aircraft. Recent bloc activities in the Middle East have included arrangements for additional arms shipments to Yemen and for the arrival of Soviet and Czech advisers in that country. While proceeding with these lines of action, Moscow probably will seek to gain'credit for easing tensions and forestalling further fighting in this area. It moved to ease Western suspicions of Soviet intentions by issuing a statement on 8 December withdrawing the implied threat of 10 November to send volunteers to fight in Egypt. Moscow appears to have a strong interest in encouraging a continuation of Arab-Israeli tensions as the principal lever of its Middle East policy. It will seek to exploit these tensions and Arab hostility toward Britain and France to block Western efforts to bring about an early settlement of the Palestine problem. Soviet representatives at the United Nations, according j have been constantly urging the Arabs to insist on the most favorable terms for a Palestine settlement. Moscow may press the Arabs to adopt an uncompromising position on partition lines and refugees based on the 1947 United Nations resolutions. The Russians probably will also urge Egypt to demand terms for a Suez settlement even more favorable than those outlined in the UN Security Council's six principles. -14- Ter SCRI. for Release: 2018/08/29 C00966205 Approved for Release: 2018/08/29 C00966205 7T/P-AJNA:P.Z Moscow can be expected to demand the immediate-withdrawal of the UN Emergency Force from Egypt as soon as the three- power evacuation is completed. Soviet propaganda has been charging that the "imperialists" are attempting to use these troops to impose international control on Suez and a general Palestine settlement on the Arab states. All of these various lines of action will serve the fun- damental Soviet aims of widening the cleavage between the Arab world and the West and drawing Egypt, Syria and even- tually other Arab states into a position of growing dependence on the USSR. With the precipitate decline of British and French influ- ence in the Middle East, the USSR recognizes that the United States will be its only,serious rival in the future struggle for power in this area. The Soviet leaders probably believe that a strong anti-Israeli line will be one of their most effective weapons in this competition. They probably cal- culate that a threatening Soviet posture toward Israel will compel the United States to.take up a position as defender and guarantor of Israel against hostile Communist and Arab pressures. This position, in the Soviet view, would make it increasingly difficult for any Arab government, no matter how well disposed toward the United States, to be identified with American aims and interests in the Middle East. Moscow has already encouraged a belief among the Arabs that it favors the eventual elimination of Israel. Izvestia published an article on 29 November entitled "The Road to Suicide" which declared that "the hatred of the Eastern peoples for Israel aroused by her brigand attack on Egypt is so great that. ..it raises the question about the very existence of Israel as a state." �15� TOP-SEC-44EZ Approved for Release: 2018/08/29 000966205 Approved for Release: 2018/08/29 C00966205 V .' / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /0, / / / 1 / / / / / /.'Y / / // / / / / / / / / P z / / / / / / / /f7 , / e; "71,14--SETGAZT. 7160P-6ECEZT wilimiApproved for Release: 2018/08/29 C00966205