MIDDLE EAST SITUATION REPORT NUMBER 60 (AS OF 1630 EDT)
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
LOC-HAK-543-5-8-5
Release Decision:
RIPLIM
Original Classification:
T
Document Page Count:
11
Document Creation Date:
January 11, 2017
Document Release Date:
December 19, 2012
Sequence Number:
8
Case Number:
Publication Date:
October 20, 1973
Content Type:
MEMO
File:
Attachment | Size |
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LOC-HAK-543-5-8-5.pdf | 530.09 KB |
Body:
~: No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5 25X1
OSD review completed w/referral DOS and release as redacted..
.CENTRAL II'+ITELL~GENGE AGENCX
? 2t1 pctobex' 19 73
INTELLZGE~CE' N~EMQ1Zc~NDUM
? r ? State Dept. review completed
?r~rDn1~~ : IaA~T ~ }~
? . $i,tuat~.an Report Nu~nbc~r FQ .~v~~R~,~~~ ~~~?~~~~.
.(As of. L~ 30 EDT ~ ~ '
THE ~'I~1L1T.~RY ?Sl''1'U1~,'~."zUN
GENERI~L : .
? 1. 11 s~niox lsra~li Deiensc: Mini.st~ry afficial.,claims
that Israeli ~ fc~rGes ciz~ tlxe :west ba.nlc c~i` the Canal Dave
interaictc~c~ x.1.1 higlzwa~*s az~d rai.~.x?a~,ds leading from Ca3.ro
to zsi~ns`l~.a and 5uc~ ,,. thin,. ~.sa~:atr~~9 Egy-~?t:a,n fo~rc~es., t~na_
tha east bznk. He stated ~t.l~a"~ L-.he Egyptian Axmx attern}~t~tt
to set titp: bl~ckinc~ foroes. at 1~ey road 3ntersecti.ona and
~+thc~'r strategic .y~ox~~ts dur.~.n,g ~.h~ raigl~t, bt~t~ that this .
effort was ineffective. ~. '.the. ciffa.cial c].ai.med that thc~
Egyptians haue. only. twc~ ~,x?mvred brigades defer~d~.ng the
Ga~.rti-Sues hi,c~l?~way: wixicli '~c~l A,v~.v views as a strong .
i.nrlica4or? af' ?th~ sha3lowness of Egygt~.an resarves: .
~, T,he ~Issaeli. officer also claimed that there" is
evidence that slime Fgypti.an- soldiers are, ~leeinc~ the battle
front, . c:spec.i;all~* in the 'fort SaY,d area. Hc? $aid tl~.~tt
firing bar Egypt~.an farocs has been sporadic rather than
cc~ns~,stent ~ a .sign that the Egy~tiaz~s were .losing their ..
.will. to f9,grit, bespite ?th~:se claims of success, the:
~sxaclas indioated tlza:t the. Israeli, Defense. >`li,nistry ~,~n25X1
? s~.ders the battle on, the `west b~.nk to be still ire doubt.
25X1, ?
? 1~ .
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5 ?
+'
I No Objection to Declassification in Part 2012/05/07 :NLN-H-92-3-4-4 ?5
. ' ~.
1'HE ? 5Y1~,lAPd T`RO~iT
? 4. Botl~ gi!ound $nd air activity levels are low. today
on th+? Syrian ~x:ont. Isra~:l~, Defetxae Minister Dayan
?admitted that h~ could not say that Syria's 1~rmy, ?or
? even a maj t~rzty of i't , has _beet~. taut out off, a~t~.on , Re .
expressed e4nc~G~:n both .over the x$,supply t~f equipment
to t:he S~a~ia.3-s by thQ ? Svv~.ets Cana the m~npcY~,,te~: contsi~
but3.ons to the S.yria;n front b~? othez ,~~ab states.
5. . The ~ Ir~r,aol~.s anticipated 'another a.tt~.c}c by '
the Jardaniatis todaSr, but it apparc~ixtly da.ri not material- ? ,
iza. An. Israeli: military si~o}.estnan cxa~,ms that the
~7c~rdani.a.ns clicl nc~t: ai:~:ack because of an error canun~.tte+~
by Syrian cc~mmarxders ye.s?~erday. He st:ata;~ that.. the .
5yxi~t~ I-~i,r Force, s~:nt~ ~ragi a~;rc~:aft to su~~pcart a .
Jordanian attack, btzt had miata.ken7.~,r ds.r_Fated, th.e air-
craft to ~ fixe~ c~~~ the Jordan3.az~s.. The Israeli otxicia~. ?
a3.so cla~.med '.that ?. Israeli missile k~4atrs shellad a
weapons assemb~.~r ' ~~lant, and a bridge along a main supply, 25X1
rr~ut~ south of '1:~artus last n~..cjht. .
I No Objection to Declassification in Part 2012/05/07 :NLN-H-92-3-4-4 ?5
' No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5 25X1
THE EGYPTIAN FRC'?.N'~:
~, ~,A seY~ivr . Z$rae~.i military official gave an
ogtimis~ti,~ briefing on th?o .~arogreas at. Isx'aela. forc?s
cin the vsGSt bank today. ~ He c:l.aim~d .i=11at the ~C~XCe,
which consists of ~ twa arm.QZ:ed and ~rnc~ infantx~' bzri:gad?s,
has a.ntar~.icted alZ of th4 ,Iz~.c~hways anti railroads lead-
j.~c3 fram Ga~.xo try Isrnai3ia ~anc~ Suez, thus isc-lating '
~;~y~tian farces. on tlia Iasi: }aanlc. T}in infantry k~icigade
was xeportedly holclii~~,~ tha ~ xsz-aeli northern flank which
axte.r~ds t:~w~~~rcl~ T's`ntai]:ia, any- a~f. the: dr3moret~ l~x~i~ad~s,.,.
was ~ sta7.l~d yesterday en rc~e~.te tv Jabal. a~. Jufrah,
abaut 3? ntilvs ?e~st of C,aa:c~, but shifted its attiack
to f:I1e r~crth ~tcrday. TI~:e x~raeli :spokesman cla3,mod
that phis : brigade was success fail i,x~ i.nterdicting the
'Cairo-r.sma3.lia road, soma 1.8miles west of the canal.
9: P,a~Qrda.nc~ tea the: lsx~aeli orfiGial tYze other .
Tsrae.li~.armured br~.c~ade al~~a enGvuntnrad ?~tiff fi,ght?-
ing .;yesi.ez-tray franY th:s Egyptian .4th Arir-?rcd Divisson.
Th~i.s davisa.on repcsrted hatl.l~eon moved back to tFie west
baxt~: from ' Laos ita,ons a.n the ~ 5 inai .~ By early of t;~rnoon,
however, the ,Isz-aels. brigade had an~aarently Overrun
the Egyptian ?divisx,on's he.~,dquarters ai~r1 had ~ attacked
tlZe tleac~quarters o~ the Ec~y~ti.azY Tha.rd Army near Jabal
al Jtxfrah. Thy Israelis are rei7orted to have' captured
several ]Gc~Yt~tian yenzra].s in ,this act~.on.
25X1
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
? '1Q. ~ The. Ysraeli spolcesm~~n si:ated that the ,Egyptian
nti]:itary conceni~ratad during the natgl~.t on seizing
straf:eg~.c po~.nts where they 4;;tab].islZed antitank
defenses. He~~laim~d,.~h?wever, that faulty planning
and ponr., cc~~ardinati.vt~ I~ad nerm.ttted .the Israeli forces
to bypa,~s many .of these obstacles. Ttte Isra~l~i.s new
tic:'].ic:vc tlxat the Lgypta.ans havc:~ oti~.y two armored brigades
facing .the Israeli, bra.c~adc: r~4ar Jabal al Juiral~. Egypt..
ian farces repc~rtc~a~.y lxave da.smantlea bridges _ and csoas-
ings. nUi.'t~i ~~f,~Isntaili.a in order ~to deny this area to .
.zsraeli. unit:s.: Egyptian farces x'eZ~ortedlf ~rere aZsc~ ,
firing sporadically today, ari ind~.cation to Tel. At*iv .
that Egyptian units are becoming disarc~an~.zed a,nd unab.].o
tv e?nre~atra.te "tIzeii~ firepower can flee rapidly moving
.Israeli units.' _ ~ '
. .
11:. m22e .z:~raeli spokesman also noted that since
early 'this afternoon, a, Large number of"" Egyptian vehicles'
~.~.r~r~y th.e svutlierzimast part of the canal a~:a npw .moving
. fr?m tl~e east vanlc tv .the' west:.' hank. He. ~~:1. ao ? reported
a large-sca,~~ movement of personnel a~~r,~y .from t~.e Part ~ .
Said areti~, a d~velol?want wh.i.ih TEL Aviv seea as an indi.~
ca~:ic~n that st~rne Egyptian so3.dars. are fle~ei.ng the f~on..~,..: '
Thy- vel'iXc:~le~: ntuve~t[tents tl ~tl~e..soixth prohal,~.~r arse Egyptian
units moving back to a~:tack the Israeli forces on the
west bank, . },ut the pe.x;,sor~nel novemen~:s iYear Fort Said
may be ci_vi.zians attempting t~,, escapes the heavy bombing .
thtsrc:. ; T}tc:: Ti;ra.eli. spokesmanl a.Lsu claimed that thE:
Eyy~~tia.n so~.dz,ers are 1QSi,nq their will td fight. .
~12:. The ?xsracti spokesman credits t1~e crest bank
f once with des tI: oy~:i~g many SA~-~ . and _ 3X-~-3 SAr4 s ates .
IIG reported 'two I,gyp.ti~,n aircraft. were dcawx~ed b~y 51~Ms '
fired key their sawn fo~Cces as' the: aircraZt attacked
Israeli .bridges aerc~ss the ctirxal. A t:ot~al of ten EgYPt,.
ion plates i:e~aortedly : were..dostrayed }ay their own forces ?
according to?t$e zsraelis. :.
? 13. Little reporting is available from Ca.i,xQ on
. ~ :the situation.: Egy'Pta.~.n wax `correspc~nd.ents acknawl~dgc?
.~
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
tlZat . Ted Aviv is ~ continuinc,~ t~ add ~reeh armored,
mechar-iaedt and. artillery units to tae battJ:~+iractt.
They' also said 1:h? autGOZne . o~ the b~;ttlas ~noia' under
way ; in Simi aid oiz the intesi: }sank would have a deci$ive
c~tfi~ct can the war.
? .? ? 14;.. xsz:ae~.a, air activity . aontin~ed into th.e late
? a~t~~rnoon' a~.ony the ?r_oiat. Aix str3,kes were detected
near Port Ssaid and rsmaili~,r and fi?~e rs~aeLi hr~13.-
~:?~aters' were not.etl Flying from the lareie Israeli Mass '
. at $ar Jif~~za i:G t~~e Deversoix ~.rea?. A flight of ~:
Ec~ypti2~Xt M~G~~1.s attem~i:ed ira engdgc: Isxaeli fi.ghters~ ..
. ;. n~c~ar Puri: Said ~ th~.s morning. Tw? AixG--Zl.s were, dQwne~25x1
? i.n the engagement: ? .
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
. i
~SRAE~?~S FC~SZT~UN CAN A LE.a.`;E--FARE
].iB. : Speakin~~ Qn .Tsra.al.'s nat.%onal ~-adi?~ today.
,Dc;fc:nae Minister Moshe baxan expreased a wi.llnc~ness to
discuss ~,rab ~~~x:opasals. f.or :a ce~sc-f3,x~:, va,y~n's w~,ll-
ingness , hav{?ever`, was temi~ered by a c~emanci that any
Cease-faire p~aposals include one of tyro cancept:~ ~ ~
return by? b4ti.h sidQS i.o thy: previous lz.nes; or the
retention= by~,botlx sa.des of pa~ita.ons occugi.ed at the
time ~f the cease~f~,r,~. 1S~'a.e7,, according to Daya.n,
.could. not; ac:~cept a ~cease,f'ire predi.aatod on the doubla
standard L':I~a~: "'in Syra.a you wiLlidraw and in EgyPt..:~du., ,
stay where . you axe . " ~ ~ . -
. ~ .
? ?19 . ' 13~,yan di?~ not p~pQS? that xarael Szek. a
cease--fire, a~ai.nt~xi.na.nc~ that "every cla~? 'th;at passes
in this ? war is in our favc~~- now . " He dia CoI1CQd@ r .
.' I7owcv~:r, ~ha#: xsrae~. is nat "in~ a Lao~i.ti.on that it .
Gan sdy , it opZ?ores a cease~fa.re ana wants a? cbnti.nua-
tiara ar ttc.w'ar. "?
~t3. '~1'1a~ ~axoss ,has i.ntc:r~ar~ted a~ayan's ? statements
as ? a suggest,ioa~, to Lyypt and. Syx~i.a that tla.egs should .
Pro~oye: a~tzuca laefore Israeli, tanks mc~vc~ stall .clan?r
to their capit.a~.s. Tt~ mayalso be, how~e~=er, that Daya~
thinks G.airo and Dazq;~scus ae in na mood to ca13 for
a Gsas~~z.~re,~. and thus fpel?s free ~ t.o .puG zsrael on.
recvr~,. as~ ,cr~.lii.nr~ to. oc~capexate in any lrtoves t?ward
? ? ,peace . ~ ; ..
21., 'r'oi?~~:ign r7iz~a:ster ;Alaba Ewan, who arrived in
'~e1 Aviv from New fork ?tc~day,~ main?t:aa.ncd that Israel
must ft-r the tir~te being corieentrate can winning, tI'~e
war. He adcl~d that "~ dvn''t sBe any prt+speGi: of s
'cease?-:fire ~t tl~e r~tament. " ';
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
IS22~,EL A:ND T~Ir. n~R wAlt
22. ?zsxa~?li pi,lol:s hive; provided tJS military .
?fficers wit] uszful. insigl~:~;s~ :into tlic~ effectiverleg;~
of ?I;c~ypt~.an and; Syrian .air' d~~anacs. according to
tl~e ~ Isxaelis;, surface~to~air miss3.].es and antiaircraft
artill.er~,r ha:ve? laeen cons~dr~xah7..y. more c~'fect~iv~ than ?
~AraS~ ~'ic~l~tex' ai.=craft ^? -
~ 3.? T1~'+e i~rae li pilots ~lai.mod that the: sz~-6
is the .best '~cir~ defense weapon in the Arav arsenax and
that it ib ~xtremeXy effective a,yainst fast moving '
aircraft. They' said that p~:ese~nt Isra~~.i electx'oi>~,c.
-~ountermeasu~res ? anz~ ?radar horrt~,t~g and warning equi.prnc~nt
are
useless 'a.g'ainsL- tl~e SA-~i ^ ?`lthe ori~.y' indicat3,4n of
an
SA-5 :c'~,tt~tCk, ~ according to tY~e IsraeJ,~,s , is a puff ?
cif
si~no~:e oiz ?the~?gr?und dura.nc~~ Launch. Onto a.rborncat
tl~.r~
n~~.ssile'~s small size area ~.ow exha4~st; amiss~.ons
"'
a;take it virt.ualYy ~.mpo5s?a.bls to sPA. Ii t~-ey slzcul.d
detect' a. l~.u.31Ch,, xsraeli pi~.ots are ialsi:ructecT to put.
fkieir ai.rcraf ~. ir-tt~ a downz~ari~ spiral. ThQ pilnts .
said tl~iei,t Choy ca,nnrit vutmaneizver tha ma.ssile rrr~r CF,i21
t hey, f 1.y' he~.~e~w ~~x~ ef'~ect,~,yc~ ~t1t~,i?ude of the ~A--S
Several Ir~r~ieli: aircraft h~ve~ been lost to the 5A-6
at etltitudc:s~ of 5Q fe.et Ox' .less . '
. ~4. 5ram~: bf the ZsaeaeZi; ~ai:lats al~zi,m tl~at mast
of their aircraft have ?l,een lost to antiairczaft
artil];ery. because the 5AM tIar~at Forces them t4 fly .
propelle.et vehicle with a high' rate of f3.re, as being.
particularly.. 'effactiva. :? ..
25. Ttie AaU fighi:z~; tllr~:at seems, to be of
? litt].c~ concern 'tU tl~e Zsxaelis , ? aired t~n~ I.~ilot claimed
inc~ look~~ ' for~-~zrd tv MIS emc:ou,nters
. 7 .
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
lour ? Tlyey mite tlZe USU.-23~?~,' a Sov~,c~t-~zuade self- '
? 25X1
25X1
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
? 25X1 ;.
2 G :. ~ US m~i;1 i. tax'y c~ f. f i cers are imnrc:~.~ ed 'wi.th the
?specd wa,i~}i wha,eh new airc:rs;~t, arra vinU i'rc~m the Us
?sre nut, intp c:cimbat~, uy thz Tsrae].a.s . Tn one case,
seven oi: ~iglxt .~~ those aizc~ai:t were rear~y fr~r com~Iact?t
with~i.n two lxcru~s . xsraeli pilots axe reportc:a to ba
'f lyin+~ four : th ? is ~.ve sori;ips a day.. I~ccoz ding ~r~ ~hc~
US oi;.f~.cers ; tt}e Israeli, Aa,r ~arca only initiates
see.rch aid rescue operations ?;i'or, pilafs dowzxed ove~?
Israeli.: territarx ors the Meditex~rane~an, and not over
etxemy~ da- cont,e~'ted texra.tory., '
'IMPACT . aF ? SAUDI OIL CUTOFF 'x'4 THE i1NITED STATES '
? ~ ?
.27: Radio R~,yadh announced today that Saudi
1~rabia has dec>.ded, to ? cut` o~I oil sha.pmer~ts to the
.United States ?Uc~caus~ o~ increased UB..aid try zsrael.
Libya, ..Abu Dlx~,~i and. Bahrein ?h~?~ve already annouzioed
a total.. eriibar~g~i cszx us oil sh~:pmenL-s aid c-ther Arab
pro3ucers $rQ almost pertain ~tcr ~ul~ow.
2 s . ; Sauda: ~ra.bian o~.l axpc~rts ? fro the Us are
about 640,000 i~arrcls pcr clay (k~/cly---3.5 percent o~
. US oil' oonsLUn~~t,ian. A total. Arab embargo on U5
oil shi~~ment:~ ~~rc~uld amau~x.1: t~ abQUt 1.8 mill.ion? bfd
~.n 4ctot~er-~~abciut 10 percers?~ o~,',U`~ oiT canswzt~~-`~;fdn
The.?A~rab ail.-p~r~du.cers may reduce I~roauat.ion evon
more than tYie 5 percent pe~?'mviitlZ' agreed updn last
Wc.dncsd~y ir~_ axz attempt to n~a~vent Irlestern oil corn-
' pa.n~.c~s fra~n ; circwnvonta.ng the solective embargo uy
shipping moxe iioi~,?-.Arab oi,l tv the US and supplaLng
otlx4r +consumers v3ith' P~rak~ ai1~. In any' event, th~3
cbmpana,PS ? arc~? ?eErt~.in to c~3sc~ the emnarga sQmorr~hat
.~ by 6witchi.ng; su~pplie$ wl~,es~eV~r passible. .
.~.
50t1'IET AIRLIFT
25X1
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
. .
30. ~urkoy's Fore~.gn Ata.nster Sayul.ken to].c11
Ambassador ~r~aaombzr `t?ctaf that h3.s govertu~tent bias
agreed to a].].c~Hr mare soviet ovarfl~.ghta. Although
8ayulken .tra,ed to hedge tha :i..ssue of the exact
arrangeanenis worked out with the Sov~.ets, he .did
mention that a:t Yeast ],0 and: perhaps as ninny as 1S
?la.ghts wou~.d be pexmi,tted~ vn'a' "vne--~tiot" Taasis.'
Asnb.zss~dor Macomber, ~lo~rtevex', '~ras~ n+at convinced that ?.
.these ~iguz-es were equally .u~derstaod by ,the 5bviete.?
25
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
? ANNEX I
Arab ~inanc~.n o~ SoV3.et Arses ?
]:. The 'New 'fork Tiri1e`s rc~port~'d on l8 October. that ? a
mad ar vi 1 ~rc~.c~uc sh;~ cr~~mtxy is seelcinc~' tv borrow money ' in
EurQl~e to pay for ?Sav~-et arms naw being de1.~.vered i:v Arab
be Niger oats , and ~ s~aeculated t_htzt the grabs .are becom~.rtg .
hard pressed far cash,. The stoxy ~.s not acetarate.
~. 'Ilx~ re}?vrt, Which ?c~,tes aua.,opcan bdnk.ing circles
as a s.ouzce, ?.aFpax;~:ntly was ba.s~d an ;an Ak~u tihabi appli-~ -
cation ~a Mcirc~an .Crend~elL Merchant ]3an3: in Loud?n fox a' .
$ 20 Q milli.?on Loan , Ostensibly for aid to other ~-rabs .
Unlike most ' o t}zer Arah~ oi:l'. coup i~ries , vrho ~~ay cash even
~vr large cagi'tal, investment prOjeots, ALtiu Dhabi ~re-~
? quently tri.c~s :tc~ bor~;vv~ at lower interest rates than
thoy arP receiuis~g? fox` their aQ}?rvssin~atr~llr $l, billion in
xagerves.?
? 3 . The Soviet Us~ivn has received ? hard cua~rency
laayment to at ,east sarnc a,rrns ~u~~pliod tv belligerents
in the Middlr~, :r~;~R: War 'but .wc~ d,a nvt ? know. if tks~y ,have
d~emandecl hard currenoy payment tox all ~ucYi do~.i.veries;
in any base, AraU cvuntx~.es h~.ve amp~.e funds can Ysand fvr
t.hi,s gur~~ase- The ?tota]. value of ax.~rns supplied i:o.,Egypt,
'' Syrix~? and' Iraq ,~~ter~ the 13G7 war was. snmc~cali~.t lese than.
$3 bi,~.lion. 1\ s~.st~i~.ar- surit cQUlri easa.ly be Bret cut df
I~r,ab casksreserves o~ more than $~.4 billion and could be
re~lacecl. out v~ nvrrnal current 'incvmc~ .n less than ~ year.
I~s~vrc~ tha gresent war, , Saud. A:x~~.lai_a., Liby~3 and. tl~e ~ul~'
's Cates alread~? had ? comniitt4d about. $2 b3,lla.4n t? arms
~urchscs fc~r .~gy'pt slot;e. ?
~. The A~:ab ?~,rxancial situation could be.com9 tem~
~xc~raarily ?C~.gh.t f~ the USSR c3emar~cled repayment of .old.
d~.kits' a.s weZ1- ?as cash ~?~cix current de7.ibQr3,eg ? as a .sine
ua noti c~~ .arms resupply. Thus far, ho~+r+svc:r, ibex
nv~c~enie a~' Such a requast . ?
A-1
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5
~Tlie cantellt~.on xn ~t2ie Necv ~rvrY Timeq that the USSR
has ~ demanded hard 'currency payment ,~a~~ axrns e7 ~.vererl in
the pas G also ..is not. entirely true: ~ie~.~:Yier Egypt nor .
Syra.a has iePa:~-d any a~ tie m.]..a.ta,ry debt accumul,~f=ed
sizice 196.7. ~c~me irxtcrest payments h~.ve baen k~:pt current
}ay k~oth. cnuntr~es ~ but. the i:3;ar-~aCtions have been made
thr~uyti l:heir bilate~'~~~. c3:c~a7:inc~ accaiznts rath.e~- than in
hardcurrency.: Zrac~ has repaid princa.pa3. a:s wc~17.. a~ utter--
t~at, usctal.l,Ir transferring hard currency. The ?harCl curr+~ncy
payments were''`vol.unta~;y, howPVer, rathex than at tiha ~.nsis--
tenoe oi' the Sevi.et Union. .
. 6 , A3vst ?~,umors .hat the USSR demanded hard currency
gayrrtent :a.n t:ha past for axm~ clal.~.verec'~ tca P;rabs chat be
:raced t4 s~at~zrlP_21t.g.by pges~.dents Nas.x and Sada.t O'~
Egypt clesi~}ned fdr the: consul-n~7ti.on off' wealthy Arab bene-~
~actoxs. Fcsr ?a number. off' ~-ear.:~ both ~gypti.an I.ea~lezs told
Arab donors ~ that ~urrc~s Caere needed for arms ~ who~'eas
am~~Ze evid~nae 4xist;~ that Arab transt~=rs to Egypt Wete
s}?ez~t on civS:lian goods. E.:po;~ure of_ this subtarfuge? by
members o~ . thc~ Libyan ~ R~t~aluti,enary Gocnrnand GaunL3.1 ?wa3 ~ the
main factC~z t11a.~. a,izs~aixPd Prc.s3.dcnt ~adha.~i to cut:~off .
ad hcc 1~~an.5~r~a~s tv: L?'g:ypt in uta.c~.-~].97~.
. ? 25X1
No Objection to Declassification in Part 2012/12/19 : LOC-HAK-543-5-8-5