TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 36

KING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

绅

:]

would

withdrawing any present West German activities in

Berlin.

The Ambassadorial talks had not yet arrived

at a conclusion on the level of West German activites

inBerlin, which would be necessary to sustain the morale of the city. If morale declined the . resistance of Berlin to absorption by East Germany

would be weakened. He thought the Russians probably preferred Brandt as Chancellor to any likely alternative THE ARAB-ISRAEL DISPUTE

Sir Alec Douglas-Home found it impossible to be optimistic. The only basis on which it might be

possible to get Egypt and Israel together was that contained in UN Resolution No 242. The Egyptians hadpublicly stated their willingness to have a treaty and live in peace with Israel. The Israelis however not commit themselves to withdrawal to the 1967 lines or even to those lines with modifications. They no doubt calculated that if fighting broke out they would win once again. It must however be expensive and a stain on their economy to keep their troops on the Canal. Clearly they could only

assistance do so

through relying on the economic/of the United States. He had told Mr Eban two years ago that

}

if he had been Foreign Minister of Israel he would have taken the same decisions as Israel had taken up to 18 months previously. Then the maintenance of the forward line became too dangerous. The death of Nasser had created a new situation, in which Sadat did not need to be the champion of the whole Arab world but could consider Egypt's interests alone.

CONFIDENTIAL