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Only the British Centurion or the American Patton, for example, could provide the answer to the tanks Egypt received from the Soviet Union beginning in late 1955, and the British would not sell Israel the Centurion. In terms of air power, the British Hunter, American F-86 Sabre, and the French Mystère-4 could all Page 10 cope with Egypt's Soviet-supplied MiG-15, but the British would not sell Israel the Hunter and French jets were subject to American offshore procurement regulations. Furthermore, the United States could extend long-term credit, whereas Israel had to pay for arms from Britain or France in full, in cash, and with little possibility of credit.

11 The significance of this first loan was especially poignant. S. allocation in 1949 of $25 million in order to alleviate overcrowded conditions in Haifa and Tel Aviv through construction of fifteen thousand housing units heightened both the fact and the Israeli perception of dependence upon America. S. 2 million was a disappointment to the Israelis, who had in 1955 applied for $75 million. S. support in other areas was also significant. Between 1952 and 1957 the United States provided Israel with a $70-million assistance package for industrial development that included the expansion of Israel's power infrastructure and transportation.

He protested to Dulles that the secretary's draft bears no relation to the lines of your own thoughts expressed in previous conversations. There is no talk of a note in which the United States would reassure Israel concerning her security. There is no mention of any intention to apply military policies in the Middle East in such a way as not to change the balance of power to Israel's disadvantage. There is no talk of offering Israel inclusion in the military aid program, in which the two strongest Arab States have already been offered participation.