Word: suez
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...turned out, though Dag Hammarskjold first called Nasser's move "regrettable," and the Israelis raged. But as with his Suez grab, Nasser had looked to the letter of the law. The fact was that Hammarskjold had always insisted that both sides must comply with the 1949 Egyptian-Israeli armistice agreement, and Nasser had only exercised his right under that agreement to administer Gaza (although he justifies his exclusion of Israeli shipping from the Suez Canal on the grounds that there is in fact no armistice and he is still entitled to exercise a belligerent's rights...
...Egypt will accept its obligation under the implied settlements which brought about the final Israeli troop withdrawals. The Egyptian government is now recommencing administration in the Gaza Strip, while the United Nations Emergency Force continues to patrol the border. Israeli ships have moved through the Aqaba Gulf and the Suez Canal soon may be reopened. Though peace-time operations seem about to be started the whole situation presents a complex of diplomatic problems whose particular solutions are interrelated and thus must be solved together...
...Secretray-General should impress upon Nasser that once this objection has been removed Egypt has little choice under international law but to declare non-belligerency and permit free passage in Suez and the Gulf of Aqaba. If the United States speaks out strongly on this point instead of equivocating with its usual pious phrases, Egypt will probably concede. For when Egypt has these securities, she will have no legal basis for interfering with Israeli shipping. But so long as Israel insists on occupying El Auja, Nasser will have some justification for keeping Israeli ships out of the canal...
...leave legal sovereignty with Nasser, but will prevent him from backing out on his financial obligations or restricting canal use. Because of his eagerness to get the money, the Egyptian dictator would probably allow a genuinely neutral control board so long as he gets revenues and can point to Suez as Egypt's property...
Only after these steps are taken can the truly basic issues be treated again. Clearly the root problem of Arab-Israeli hatred will not disappear no matter how effective the Suez settlement is. Conditions of the Arab refugees inside Palestine and Arab poverty outside Israel can begin to be alleviated. The United States, preferably in coordination with the UN, must be ready to extend economic aid to these peoples. While this will not restore amity between the Arabs and Israel, amelioration of the refugees' lot and improvement of the Egyptian and other Arab nations' living conditions will somewhat remove...