The Phoenix Jewish news., 1960-09-16
BY MILTON FRIEDMAN


Copyright, 1860, JTA, Inc.)
WASTIINGTON-The year in Israel
American relations was marked
by a struggle by Israels friends
against Arab blockade and boycott
tactics.
The year opened with a setback
for Israel when the World Bank,
supported by the U. S. administra-
ton, loaned $50, 500, 900 to the
United Arab Republic to improve
the SueZ Canal respite restrictions
on Israeli ships and cargoes.
NASSER, dictator of the UAR,
successfully ignored President
Eisenhower'S pledge to Israel that
the United States would support
Israeli transit rights in the SueZ
Canal. Mr.. E is n h over had
solemnly promised in 1857 that
1--WE should not assume that, if
Israel withdraws (from SinaD
Egypt will prevent Israeli shipping
from using the SueZ Canal or the
Gulf of Aqaba. If, unhappily, Egypt
does hereafter violate the ArmiS-
tice Agreement or other interna-
tional obligations, then this should
be dealt with firmly by the society
of nations"
In the summer of 1859, Assistant
Secretary of State William Ma
comber, Jr., had reassured 25
Senators that the U. S. position
with respect to "the unrestricted
use of the canal is clear and un-
equivocal." But on December 10,
Secretary of State Herter endorsed
the loan to Egypt, stating that the
World Bank ought not to engage
in diplomatic pressure" to open
the canal
THE STATE Department tried to
dissuade members of Congress
from opposing the loan. A signifi.
cant number of Congressman felt
the loan should be deferred until
Egypt provided freedom of canal
transit. Congressional views were
ignored, however, when the Ad'
ministration, through the Execu.
tive Department, endorsed the loan
in the "beSt interests of the
free world as a whole"
Nasser, accepting the $50, 500, 900
openly proclaimed that eve will
never let Israeli ships pass through
the canal" An emboldened u AR
Intensified boyco t restrictions
The United States poured othsl
| forms of aid into Egypt. Included
were funds for enlarging airpor
| facilities to accommodate je
| planes including bomberS, con
| struction of television facilities, i'm
| provement of railways, and 81
/ forth. Washington did not consider
lit desirable to insist that Cairo
abandon its economic warfare
| against Israel. There was nothing
mutual in the mutual securit.
arrangements with Nasser. 1t wa
| a case of winning" Cairo ava!
| from Soviet influence.
| QUESTIONS arose on Capito
Hill. Should We Internationally ait
nations which boycott and blockade
neighbors, acquire Soviet arms
and defy u. N. Security Council
decisions? Members of Congress
thought the 1860 Foreign Aid Bill
should include a provision linking
American aid to respect for In
ternational law and morality.
Rep. Leonard Farbstein, NeS
York Democrat, a member of tn
House Foreign Affairs Committee
was first to introduce an amend
ment to the Foreign Aid Bill insist
ing on freedom of the seas. At tina
time many Americans were shock
ed to learn that the u. S. Nav
had surrendered to the Arab boy
colt. The Military Sea Transports
ton Service recognized the Ara
blockade by notifying shipowner
transporting oil for the Navy ths
they would be liable for all eS
penses incurred if their ships wer
/ penalized by the Arabs for tradin
with Israel. The practice had starr
ed two years before when tanke
chartered by the Navy was refuse
facilities in Saudi Arabia becauS
1t had called at an Israeli port.
The Navy acted to remove IN
So-called "Haifa clause"-but oril
after being attacked in Congress