Israel Sees Latest U.S. Proposals on Settlement As ‘deterioration’

Highly placed sources said here yesterday that Israel regarded the latest American proposals to the Soviet Union on the future boundaries between Israel and Egypt to be a “deterioration” from the previous American formula. The sources said also that they understood that Egypt takes the same view. Authoritative sources reported here yesterday that the U.S. has suggested that the Israel-Egyptian boundary should be the international border dating from the British Mandate over Palestine.

This would mean that the Gaza Strip would be retained by Israel, but that Sharm el-Sheikh, the southern-most point on the Sinai Peninsula, commanding the Strait of Tiran, would revert to Egypt. These sources reported however that another U.S. suggestion was that the fate of both areas should be decided in direct negotiation between Israel and Egypt.

Israel objects to any proposal containing a clear cut formulation on boundaries by a third party. Israel insists that all matters relating to boundaries are subjects to be discussed directly with the Arab states.

(It was reported in New York that the American proposal for a settlement called for internationalization of Gaza and for a United Nations force in control of Sinai, which would be returned to Egypt. It is understood that America also suggested that Israel retain East Jerusalem but that civic and religious rights there should be extended to the Jordanians. No mention is made of the Golan Heights in the American plan, it was said.)

(In Washington, the State Department refused to confirm or deny reports that the U.S. has made concessions to the Arabs by agreeing that Israel must withdraw from the entire Sinai peninsula without border adjustments, Department spokesman Robert McCloskey said “it would be unwise to air publicly and officially” what is being discussed behind closed doors between the U.S. and Soviet Russia in an effort to achieve a joint solution.)