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is in Jordan about the Israeli occupation. The Jordanians underlined in familiar terms their hope that we and the other Europeans would put as much pressure as we could on the Americans in respect of Israel.
4. In both countries, and especially in Jordan, there was very real dismay about the apparent understanding between the US and Israel about a future "strategic relationship". President Sadat told me that he had been personally informed by Haig that this amounted to no more than the Israelis providing medical facilities for US forces a point later echoed in public US statements. I made it clear that the move, if such it was, had nothing to do with us and would be very damaging
The if it was as significant as early press reports had suggested. Jordanians were also particularly gloomy about the outcome of the Iran/Iraq war. The stalemate could well continue for a long time.
In
5. I am confident we have made progress on equipment sales. Egypt, there was clear satisfaction that the Anglo-Egyptian Swingfire factory was working well. The factory is also very suitable for local production of Rapier and I think we were able to regain some ground on Rapier lost earlier to the French. We also took soundings on a number of items including an early purchase (if credit were available) of 6 patrol boats. But the major new prospect now opening up is for tanks, and the Egyptians made a strong bid to me for a purchase of some 300 Challengers. This was seen not only in terms of co-production, but also finance from Arab - ie Saudi Sources. This may depend on the prospects for better relations between Egypt and other Arab States, although there is probably some Arab finance already in play. The Egyptians as expected laid stress on the importance of soft and extended credit for their prospective purchases, about which I shall be in touch with John Biffen and Geoffrey Howe separately.
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