ISRAELI POLITICAL AND ECONOMIC INTERESTS IN THE THIRD WORLD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00287R001302190001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: August 19, 2010
• Sequence Number: 1
• Publication Date: October 11, 1984
• Content Type: MEMO

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entry mintelligence Agency
11 October 1984
Israeli Political and Economic Interests in the Third World
Summary
Israel is eager to expand relations with
Third World states in order to reduce its
diplomatic isolation and to gain access to new
markets for industrial and military exports.
Israeli Government leaders believe that Israel and
the United States can work together for mutual
benefit in many developing and underdeveloped
countries, particularly in Latin America, where
Israel has long enjoyed commercial and security
relations with a number of states. The Israelis
clearly also would like to cultivate relations
with countries in the Horn of Africa--particularly
Ethiopia--because of Israel's need to assure safe
passage for its ships through the Bab al-Mandeb
strait.
Israel can provide economic and military assistance that is
particularly well-suited to the needs of Third World countries in
areas such as:
agriculture and irrigation.
-- high technology products that are easy to maintain and
use.
-- modern. battle-tested military equipment.
and counterterrorism
25X11
This memorandum was prepared byl lof the 25X1
Israel/Palestinian Branch, Arab-Israeli Division, Office of Near
Eastern and South Asian Analysis. Information as of 10 October
1984 was used in its preparation. Questions and comments should
be directed to Chief, Arab-Israeli Division, 25X1
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Despite these selling points, Israel in recent years has
encountered difficulties expanding its ties in the Third World.
Even where Israel has good government-to-government relations, it
has not been able to rely on support from those governments in
multilateral forums.
Israel's economic crisis has made it difficult to initiate
new development assistance programs and expand existing
ones.
Arab countries have exploited Third World dependence on
OPEC oil and Arab financial assistance to dissuade
governments from establishing or upgrading relations with
Israel.
Third World governments have downplayed their relations
with Israel to attract Arab support for their initiatives
in the UN and other international forums.
Many Third World governments, particularly in Asia and
Africa, value their non-aligned status and are wary of
being tainted by Israel's special relationship with the
United States.
Israeli Relations with African States
Israel has been a pariah in Sub-Saharan Africa since the
Arab-Israeli war of October 1973, but it has never ceased to
consider the region an important arena for diplomatic and
economic activity. Israel's official presence is limited to ties
with three states closely linked to South Africa--Malawi,
Lesotho, and Swaziland--and to two countries closely associated
with the United States--Zaire and Liberia. Israel, however, also
has important informal economic and security ties with Ivory
Coast, Nigeria, Kenya, Ethiopia, Togo, Central African Republic,
Cameroon, Gabon, Botswana, and Ghana 25X1
The recent reestablishment of formal relations with Zaire
and Liberia has led to an increase in Israeli assistance to both
countries. In Zaire, Israeli military advisors are training and
helping expand the Special Presidential Brigade, which is
responsible for President Mobutu's personal safety. Israel has
given Kinshasha some surplus military equipment, and more is
expected. To date, Israeli economic aid to Zaire has been
limited to technical assistance.
Israeli help for Liberia also has focused on security, in
particular training Liberia's elite presidential guard and
Liberian police officers. Most Israeli economic assistance
projects are still in the planning stage 25X1
In mapping out its future strategy for Africa, Israel
probably is most interested in developing relations with
countries in the Horn of Africa. This area is of strategic
importance to Israel because of Israel's need to ensure safe
passage for its ships through the Bab al-Mandeb strait to Eilat
and to Mediterranean ports. Israel has modest economic relations
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with Kenya and Ethiopia, but no ties with Somalia. Israeli
interest in Ethiopia is heightened by the presence there of a
25,000 member indigenous Jewish community.
Several factors work against the expansion of Israeli
activities in Africa. Many African countries, such as Somalia
and Nigeria, have sizeable Muslim populations that African
leaders do not want to antagonize. Israel's close relations with
South Africa further complicate its campaign to rebuild a
diplomatic presence in black Africa 25X1
Israel and Latin America
Israel's relations with Latin American governments are the
most extensive and enduring it enjoys in the Third World. Israel
has diplomatic relations with every Latin American country except
Guyana, Cuba, and Nicaragua. Latin America is one of Israel's
prime markets for arms exports; in recent years, arms sales to
Latin American countries have accounted for approximately half of
Israel's exports worldwide. Israeli exports to Latin America
amount to only about 3 percent of its total world trade, but
Israel imports about 40 percent of its oil from Mexico 25X1
Israel sells mostly small arms, ammunition, and
telecommunications equipment to Latin American countries,
although the Argentines have purchased a considerable number of
fighter aircraft. In Central America, Guatemala, El Salvador,
Panama, and Honduras have purchased weapons from Israel for many
years. Israel also has provided to 25X1
Guatemala, Panama, Costa Rica, and Mexico. Israel derives
significant, visible political benefits from its friendly
relations with certain Central American states; El Salvador and
Costa Rica are the only countries that currently maintain their
embassies in Jerusalem 25X1
Because of its economic problems, Israel's economic
assistance is largely limited to technical advice and training
programs. The Israelis have extended agricultural and other
small-scale technical assistance to many Caribbean and Central
American states.
Israel wants to cooperate with the United States in Latin
America, particularly in Central America. It seeks from the
United States financial assistance to facilitate expanded Israeli
arms sales, military training programs, and 25X1
rural development projects.) 25X1
Despite Israel's cultivation of good bilateral relations
with Latin American countries, many governments in the region
continue to balk at supporting Israel openly in international
forums. Most Latin American governments support Israel only when
fundamental issues are at stake, such as Israeli membership in
the UN, or when a secret ballot vote is stipulated.
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Israel and Asia
Asia ranks below Africa and Latin America in Israel's
foreign policy priorities. Israel, nevertheless, enjoys good
relations with many governments in the region and is working to
strengthen existing ties and establish new ones. Israel's major
trading partners in the region are South Korea, Singapore,
Thailand, and India. Israel currently is attempting to expand
arms sales to Singapore and is seeking closer military
cooperation with Seoul
Recent Israeli attempts to expand ties with countries in
south Asia, such as India and Sri Lanka, have had mixed
success. India has not been receptive to Israeli offers of
closer cooperation because of New Delhi's desire to retain a
dominant position in the non-aligned movement, its support for
the Palestinians, and concern over the sensitivities of its
minority Muslim population. The Israelis recently opened an
interests section and have been able to expand security and
economic ties with Sri Lanka, but Colombo does not want to become
too closely linked to Israel for fear of jeopardizing its
important economic and political relations with India and the
Arab world.
A major Israeli regional concern is that Pakistan, with
which Israel has no relations, might provide nuclear
weapons-related assistance to Arab states
In southeast Asia, Israel has ties with Thailand, Singapore,
Burma, and The Philippines. These governments, however, also
limit their relations with Israel because of their position in
the non-aligned movement or the presence of minority Muslim
populations within their borders.
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Israeli Relations with Selected Third World Countries
Country Relations EconQnic Aid/Trade Military Sales/Aid Ccmments
Africa
Botswana Broke relations Negligible
in November 1973
Ethiopia Broke relations Israeli exports valued at $8.4 million Israel provides spare
in October 1973 in 1983, chiefly agricultural goods, parts for Ethiopian Army
chemicals, and manufactured goods
Kenya Broke relations in Israeli exports valued at $10.5 Minor military sales,
November 1973. million in 1983, chiefly including Gabriel
Israel has interests agricultural equipment and chemicals shipboard missiles
section
Liberia Renewed diplomatic Minor trade, technical assistance Israel provides
ties in August 1983 to Liberian central bank militatyl ~
Nigeria Broke relations in Israeli exports totaled $32.3 None
October 1973 million in 1983, chiefly machinery
and manufactured goods
Zaire Restuned diplomatic Minor trade
Israel provides
ties in May 1982 military
OPEC member,
received $400
million loan from
Saudi Arabia in
1983
Q T, 'W PT I
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Country Relations Economic Aid/Frade
India Diplomatic relations Israel imports valued at $24 million
strained recently in 1983, chiefly textiles, copper,
and coffee
Philippines Diplomatic relations, Minor. Israel imports foodstuffs
but kept at low and exports manufactured goods
profile
South Diplomatic relations, Total trade $30 million in 1983.
Korea but Israel closed its Israel imports footwear and cotton,
Embassy in 1978 for exports machinery and chemicals
financial reasons
Military Sales/Aid Comments
Minor India this year
reduced Israeli
diplomatic presence
None
25X1
S;_i Lanka Israel opened Minor Israelis recently
interest section offered security
in spring 1984 training and
equipment
Thailand Friendly diplomatic Total trade $29 million in 1983. Minor
relations Israel exports chemicals and
machinery, impoL-ts cereals
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Country Relations
Latin America
Economic Aid/Trade Military Sales/Aid Comments
Argentina Friendly diplomatic Israel imports valued at $67 million Israel's main Latin
in 1983 American market.
Military ties have
expanded in recent
years as Buenos Aires
searched for substitute
to US arms
Chile Friendly diplomatic Israeli exports valued at $16 million Minor
in 1983, chiefly machinery and
manufactured goods
Coiurnbia Friendly diplomatic Minor
relations
Dani nican Friendly diplomatic
Republic relations
Some economic aid, regarded favorably Minor Probably best
by Dominican Government relations of
any Caribbean
Government
El Friendly diplomatic Minor
Salvador relations
Ho-xluras Friendly diplomatic minor
relations
Mexico Diplomatic relations, No economic aid. Israel buys roughly None, but deals have
but low profile 40% of its oil from Mexico been discussed
Suriname Diplomatic relations, Minor development aid
but long profile
Venezuela Diplomatic relations, No aid, minor trade
but to profile
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SUBJECT: Israeli Political and Economic Interests in the Third World
NESA M#84-10282
DISTRIBUTION:
External:
Orig - The Honorable Michael H. Armacost
Internal:
1 - DDI
1 - NIO/NESA
1 - D/MPS
1 - PDB Staff
4 - CPAS/IMD/CB
1 - CPAS/ILS
1 - D/NESA
2 - NESA/PPS
1 - NESA/AI
2 - NESA/AI/I
DDI/NESA/AI 12Oct84) 25X1
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