U.S. Officials Divided over Desirability of Reopening Suez Canal

The American officials appeared to be divided today oven the desirability of reopening the Suez Canal. State Department officials were reportedly ready to trade the strategic advantage reopening would give the Russians for the prospects of Arab-Israeli peace along the waterway and the diminution of chances of a U.S. -Soviet confrontation. But high ranking U.S. naval officers believe the best way to contain the expansion of Soviet seapower into the Indian Ocean is to keep the canal closed for the present. Treasury Department officials on the other hand, view the reopening of the canal as an economic benefit for the U.S. and its Western and Japanese allies which would be assured of an increased flow of Middle East oil. Secretary of State William P. Rogers said yesterday that that he was “encouraged” by Israeli Premier Golda Meir’s reply to President Anwar Sadat’s proposal that Egypt reopen the canal.

Although Mrs. Meir rejected Sadat’s condition that Israel pull back its forces from the canal’s east bank, Rogers said he thought her reply deserved “serious consideration.” Egyptian sources in Washington appeared to back away from Cairo’s initial interpretation of Mrs. Meir’s reply as an outright rejection of the Sadat offer. They said Egypt was prepared to make peacc with Israel in a signed document. But they insisted that Israel agree first to a partial withdrawal from the canal as a preliminary to a commitment for total withdrawal from all occupied Arab territory. They said that Israeli use of the Suez Canal was contingent on an end to belligerency which, in Egypt’s view, can be achieved only after total Israeli withdrawal. Sources here said Secretary Rogers’ encouraging view was not based on the fact that the disputing parties have drawn any closer but that they are at least addressing themselves to the same specific issue.