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situation report on territory acquired byuring recent military action
jerusalem: the city of jerusalem is considered an integral
rsRT or irnan. amp will no? beo negotiation, the security
S annoying but WILL be brought under controlE required and willatter of major concern, THE current problem IN the "old city* is more conomic in NATURE. WHILE hotels-ARE filled in the israeli section* they remain onlyERCENT occupied in the old city. the midnight curfew also hastourists from staying there. a major effort is being under-AKEN to encourage use of these facilities.
golan heights, SYRIAl no concessions CAN be,made which WILL in ANY way restore the situatios whereby syria will regain her former strategic positions. the military fortifications evacuated by the syrians re-emphasize the need for israel to guarantee her security in this area. . presence will be considered effective in this respect.
the suez canal: ANY international agreement must grant israeli ships free access to the suez canal. granting access to israeli ships under "flags OF convenience" will NOT be acceptable. israel's case regarding the canal is stronger than its position on other issues. israel believes THAT pressures ON egypt are mounting toolution and that ANY proposal less than FULL access
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' SHOULD NOT BE CONSIDERED. ISRAEL WILL ACCEF.SUAR ANTEES OF FREE
ACCESS iuT WILL HAKE IT CLEAR THAT ANY EFFORTS TO DELAY, SABOTAGE, OR OTHERWISE HAMPER ISRAELI SHIPPING IH THE CANAL WILL BE REGARDED AS SUFFICIENT CAUSE FOR ANY ACTION, INCLUDING MILITARY, THATNAY BE NECESSARY. THE POSSIBILITY OF SABOTAGE TO ISRAELI SHIPPING, IF ' ACCESS PERMITTED, IS NOT CONSIDERED TO BE SERIOUS. IF SUCH
ACTIVITIES ARE UNDERTAKEN, THE ISRAELIS ARE CAPABLE OF RETALIATIONUCH MORE SERIOUS DEGREE.
A. THE SINAI, AND GAZA l IF THE ISSUE OF THE CANAL ISSINAI AND GAZA ITSELF CAN BE THE SUBJECT OF NEGOTIATION.. FFELING EXISTS REGARDING THE SINAI. WITH THE CANAL OPEN,OF ASHDOD ASSUMES ITS TRUE ROLE AND THE WHOLE SINAI AREA BECOMES
ONE OF LESSFR IMPORTANCE.
5. THE WEST BANK: THE GREAT APPEAL OF THOSE WHO WISH TOWEST BANK LIES IN THE ELIMINATION OF THE NARROW CORRIDOR BETWEEN
ISRAEL'S EASTERN BORDER AND THE SEA. KEEPING THE WEST 3ANK REPRESENTS SECURITY AND APPEALS TO THOSE WHO REGARD THE JORDAN RIVERATURAL BOUNDARY. ON THE OTHER HARD, WITH THE RETURN OF THE ARAB POPULATION, THE ISRAELIS WILL FIND THEMSELVES EVENTUALLYBY THE ARAB POPULATION. THE ECONOMIC COST OF
u ins. muuw!
PAW i. OF AGES
REHABILITATION AND DEVELOPMENT VILL BE TREMENDOUS. ISRAELI
MERCHANTS ARE ALREADY COMPLAINING ABOUT THE INFLUX OF AGRICULTURE
PRODUCTS AND THE RESULTING EFFECT ON THEIR MARKETS.
THESE FACTORS ARE CAUSING "SECOND THOUGHTS' CONCERNING THE
W*ST BANK I ANDITH THE EXCEPTION OF THE LATRUN SALIENT AND
JERUSALEM, THERE IS GROWING OPINION THAT THE REST OF THE AREA COULD
BE RETURNED TO JORDAN EACE SETTLEMENT.
I STATE CINCMEAFSA CINCUSNAVEUR CINCSOUTH (PERSONAL).
[IIJ (C)Original document.