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    William

    B.

    Quandt

    ^m^ THE MIDDLE EAST CRISES

    ^JL^

    ^o

    area

    of

    the world had

    a

    greater

    impact

    on

    American

    politics,

    national

    security,

    and

    economic

    well-being

    than did

    the

    Middle

    East

    in

    1979.

    With the fall of

    the

    Pahlavi

    regime

    in

    Iran

    early

    in

    the

    year,

    a

    profound

    change

    in

    the

    regional

    balance of

    power

    took

    place.

    In

    November,

    when

    the

    deposed

    Shah

    was

    admitted

    to

    the United States

    for

    medical

    treatment,

    militants

    seized the U.S.

    Embassy

    in Tehran and at the end of the

    year

    were

    still

    holding

    about

    50

    Americans

    hostage?with

    the

    support

    of

    Ayatollah

    Khomeini,

    the head of the

    new

    Iranian Islamic

    Republic.

    And

    in

    late December the

    Soviet

    Union

    used its

    own

    forces

    to

    replace

    one

    communist leader

    in

    Afghanistan

    with

    another

    more

    to

    its

    liking

    and

    subsequently

    sent over

    50,000

    troops

    to

    secure

    the

    new

    regime

    and

    to

    put

    down

    insurgents

    in

    the

    countryside.

    In

    the face of these

    developments,

    U.S.

    officials

    turned

    their

    attention

    to

    issues

    of

    military

    power,

    bases

    and

    arms

    transfers

    to

    help

    stabilize

    the volatile

    region

    surrounding

    the

    Persian Gulf.

    The

    keystones

    of the

    Carter Administration's

    early

    foreign

    pol

    icy?human

    rights,

    arms

    control,

    non-proliferation?receded

    in

    importance,

    and

    power

    politics

    once

    again

    seemed

    on

    the

    ascen

    dant

    in

    Washington.

    Public

    and

    congressional

    sentiment

    against

    the Soviet

    Union

    led

    to

    the

    shelving

    (at

    least

    for the

    present)

    of

    the

    painstakingly

    negotiated

    Strategic

    Arms

    Limitation

    Treaty

    (SALT)

    and

    with it

    much of

    what remained

    of the

    prospects

    for

    d?tente with the Soviet Union. President Carter's

    handling

    of the

    crises

    over

    the

    hostages

    in

    Iran

    and

    the Soviet

    troops

    in

    Afghani

    stan

    initially

    won

    wide

    support

    and

    appeared

    to

    have

    dramatically

    improved

    his chances

    of reelection.

    Pakistan

    and Iran

    loom

    as

    the

    most

    likely

    early

    tests

    of

    the

    President's

    policies.

    In

    any

    event,

    it

    now seems

    clear that

    in

    the

    1980s

    it will

    be the

    oil-rich

    Persian Gulf and

    the

    surrounding

    area?Iran,

    Iraq

    and

    Saudi

    Arabia,

    as

    well

    as

    Afghanistan

    and

    William

    B.

    Quandt

    is

    a

    senior fellow

    at

    The

    Brookings

    Institution.

    From

    January

    1977

    to

    mid-1979,

    he

    served

    on

    the National

    Security

    Council

    staff,

    where

    he dealt

    with Middle

    Eastern affairs.

    He is

    the author of several

    books,

    most

    recently

    Decade

    of

    Decisions: American

    Policy

    Toward

    the Arab-Israeli

    Conflict,

    1967-1976.

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    THE

    MIDDLE EAST

    CRISES

    541

    Pakistan?where

    superpower

    rivalries

    will

    be

    most

    acute,

    where

    the economic

    interests

    of the industrialized

    world

    will

    be deter

    mined,

    and where local rivalries will

    increasingly

    carry

    with them

    the threat of

    global

    confrontation.

    The

    more

    hopeful

    and

    idealistic

    phase

    of

    President Carter's

    foreign

    policy,

    that

    is,

    up

    to

    the

    taking

    of

    the

    hostages

    in

    Iran

    and

    the

    Soviet

    intervention

    in

    Afghanistan,

    did

    produce

    one

    genuine

    achievement

    in

    the

    Middle East?the

    Egyptian-Israeli

    peace

    treaty

    of March

    1979.

    A

    product

    of

    long

    and difficult

    negotiations,

    the

    treaty

    promised

    to

    reduce the

    danger

    of

    Arab-Israeli conflict

    just

    as

    the

    risks of

    confrontation

    were

    growing

    elsewhere

    in

    the

    region.

    The

    remaining

    issues

    involving

    the

    Palestinians,

    Jordan,

    Syria

    and

    Lebanon

    seem as

    intractable

    as

    ever.

    The

    unresolved

    Palestinian

    issue

    in

    particular

    has

    a

    direct

    bearing

    on

    stability

    in

    the Arabian

    Peninsula

    and the

    Gulf,

    and

    thus

    must

    remain

    near

    the

    top

    of the U.S.

    foreign policy agenda,

    if

    not

    in

    1980

    at

    least

    in

    1981.

    Because

    of

    the divisions the

    treaty

    produced

    in

    the

    Arab

    world,

    it

    did

    little

    to

    enhance American

    prestige

    and

    credibility

    with

    countries such

    as

    Saudi Arabia.

    And it

    was

    the

    Saudis,

    as

    much

    as

    anyone,

    who held the

    key

    to the

    escalating

    price

    of oil.

    During

    1979

    alone,

    oil

    sold

    by

    members of the

    Organization

    of

    Petroleum

    Exporting

    Countries

    (OPEC)

    doubled

    in

    price

    from

    less than

    $13

    per

    barrel

    to

    around

    $30

    per

    barrel.

    For

    the United

    States,

    this

    spelled

    slower

    economic

    growth,

    a

    weakening

    of

    the

    dollar

    and

    boosted inflation.

    With

    luck,

    it

    might

    also

    mean

    a

    commitment

    to

    an

    effective

    energy

    policy

    that

    would

    reduce

    vulnerability

    to

    the

    disruption

    of

    Middle East oil

    supplies.

    But

    there

    was

    little

    sign

    of

    this

    at

    year's

    end.

    In

    all,

    the events of 1979 have created awesome

    problems

    for

    the

    Middle

    East and for

    American

    policy

    in

    the

    region.

    The

    revolutionary

    situation

    in

    Iran,

    the

    challenge

    of

    Soviet

    power,

    the

    stalemate

    in

    the search for

    a

    broad Arab-Israeli

    settlement,

    the

    insecurity

    of moderate

    regimes

    in

    the

    area?above

    all Saudi

    Arabia?confront

    American

    policymakers

    with

    extraordinarily

    difficult choices.

    The stakes

    include

    the

    continued

    access

    of

    the

    United States

    and the

    West

    to

    Middle

    Eastern

    oil,

    as

    well

    as

    whether the

    price

    of

    that

    oil

    can

    be

    kept

    within

    manageable

    limits. The

    challenge

    to American

    diplomacy

    and to the

    ability

    of

    the

    United

    States

    to

    marshall all

    its

    levers of

    influence?diplo

    matic,

    economic and

    military?may

    be

    the

    greatest

    since the

    onset

    of

    the cold

    war.

    The

    analysis

    of these

    problems

    and

    their

    interrelationship

    will

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    542

    FOREIGN

    AFFAIRS

    begin

    with

    what

    happened

    in

    Iran

    and

    on

    the

    Israeli-Egyptian

    front

    in

    1979,

    and then

    will consider

    the

    implications

    of

    these

    two

    situations for Saudi Arabia and the other Arab states. The events

    in

    Afghanistan

    and the

    Soviet

    policy

    toward

    the

    region

    will

    then

    be

    examined,

    and

    finally

    the

    implications

    for American

    policy.

    ii

    The dramatic

    events

    that led

    to

    the fall of the Shah of Iran and

    his

    replacement

    by

    a

    militant Islamic

    Republic

    go

    back

    to

    1978,

    but

    deserve

    brief

    review

    here.

    In

    retrospect

    it

    seems

    clear that after

    the

    massive

    riots

    of

    early

    September

    1978

    there

    was no

    real

    possibility

    that the Shah could have maintained his

    authority

    in

    undiluted

    form.

    Even

    the

    large-scale

    use

    of

    his

    army

    had failed

    to

    quell

    the

    riots,

    and

    he

    himself

    apparently

    recognized

    that

    some

    new

    political

    formula

    was

    needed.

    The

    real

    question

    at

    the

    peak

    of the

    crisis?on

    which

    he

    consulted

    extensively

    with

    the

    American and

    British

    Ambassa

    dors?was

    whether

    he

    might

    have been able

    to

    preserve

    the

    institution

    of the

    monarchy

    on a

    new

    basis

    if

    he

    had been

    willing

    to

    turn

    over

    some

    power

    to

    a

    competent

    civilian

    government

    or

    to

    the

    military.

    The Shah did ask the United States for advice on

    how

    to

    deal

    with the

    growing

    unrest

    in

    the

    country.

    But

    he showed

    little enthusiasm

    for

    either

    a

    civilian

    or

    military

    government,

    and

    joked

    about

    the

    incompetence

    of

    the

    people

    to

    whom

    he

    would

    have

    to

    entrust

    the

    leadership

    of

    the

    country.

    Perhaps,

    he

    said,

    they

    would

    help

    convince

    the

    masses

    that

    the

    only

    real

    alternative

    was

    the

    iron fist.

    Hearing

    these

    confused

    plans,

    U.S.

    officials

    were

    not

    prepared

    to

    take

    responsibility

    for

    telling

    the Shah

    how

    to

    govern

    his

    own

    country.

    The Shah

    proceeded

    to

    name,

    in

    turn,

    a weak

    military

    and

    then

    a

    weak

    civilian

    government,

    but

    neither

    was

    able

    to

    restore

    order,

    to

    end

    the

    strikes

    that

    were

    paralyzing

    the

    country,

    or to

    defuse

    the

    growing

    alienation

    from

    his

    rule.

    The American

    hesitancy

    to

    give

    advice

    to

    the

    Shah

    reflected,

    to

    some

    degree,

    the

    post-Vietnam

    aversion

    to

    overinvolvement

    in

    the

    internal

    affairs

    of

    other

    countries.

    It

    may

    also

    have

    reflected

    a

    misreading

    of

    the

    Shah,

    who

    reportedly

    wanted

    to

    be

    told

    what

    to

    do.

    He

    subsequently complained

    that

    he

    never

    knew

    what

    the United

    States

    wanted

    of

    him

    during

    the

    crisis,

    and he

    appears

    now to

    blame

    the

    United

    States

    for his downfall.

    Those who had

    known

    the Shah

    in

    earlier

    periods

    recognized

    a

    familiar

    pattern

    of

    psychological

    dependency.

    In

    the

    end

    he

    lost

    all control

    of the

    situation

    and

    left

    the

    country

    in

    January

    1979. After

    a

    brief

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    THE

    MIDDLE

    EAST

    CRISES

    545

    from the

    United

    States

    to

    Panama

    in

    December

    had

    little

    effect.

    The

    one

    man

    whose voice

    seemed

    to

    carry authority, Ayatollah

    Khomeini,

    remained adamant

    in

    calling

    for the Shah's

    return

    to

    Iran

    as

    the

    price

    for

    the

    release of

    the

    hostages,

    and

    carefully

    orchestrated American

    pressures

    seemed

    to

    have little

    impact

    on

    his

    thinking.

    Nor

    did

    the domestic turmoil

    in

    his

    own

    country,

    with

    separatist

    movements

    active

    in

    Azerbaijan,

    Kurdistan,

    Khu

    zestan

    and

    Baluchistan,

    convince the

    Ayatollah

    to

    turn

    his

    atten

    tion

    to

    internal

    problems.

    Instead,

    in

    the

    image

    of

    a

    true

    revolu

    tionary,

    Khomeini

    remained

    obsessed with

    the

    evils of

    the Shah

    and

    with

    the

    great Satan,

    the

    United

    States.

    One

    of the

    questions

    that surrounded

    the

    Iranian

    Revolution

    from

    its

    onset

    was

    whether

    Khomeini and

    his Islamic

    Republic

    might

    signal

    a new

    resurgence

    of Islamic

    feeling

    and

    solidarity

    that

    would

    affect

    other Islamic

    nations,

    especially

    those

    in

    the

    Middle East.

    Iran

    was,

    to

    be

    sure,

    a

    special

    case,

    not

    only

    because

    of

    the

    centralized

    personal

    rule of

    the

    Shah,

    but also

    because

    of

    the

    dominance

    there of

    the

    Shi'ite

    version

    of

    Islam,

    which

    with

    few

    exceptions

    is

    elsewhere

    in

    the Islamic world

    a

    small

    though

    at

    times

    disturbing minority.

    Islamic reaction

    to

    the

    new

    regime

    in

    Iran

    reflected

    these differences.

    Muslim

    leaders

    expressed

    criticism

    of

    Khomeini,

    coupled

    with

    concern

    for Shi'ite activism

    in

    countries

    such

    as

    Iraq,

    Kuwait,

    Bahrain,

    and

    the

    eastern

    province

    of Saudi

    Arabia.

    While

    it

    would be

    wrong

    to

    conclude

    that

    a

    wave

    of

    fundamen

    talism

    is

    sweeping

    the entire Islamic

    world,

    it

    is

    fair

    to

    say

    that

    many

    Muslims

    have

    a

    renewed

    sense

    of

    pride

    in

    their

    own

    civilization,

    a

    sense

    of

    power

    derived

    from

    the

    explosion

    of

    oil

    wealth

    in

    some

    countries,

    and

    a

    resistance

    to

    foreign

    interference

    in

    their

    affairs. These

    sensitivities manifested themselves when

    accusations

    were

    made that

    the United

    States had

    been involved

    in the

    attack

    on

    the

    Grand

    Mosque

    in

    Mecca

    in

    November

    1979.

    While

    false,

    these

    charges

    resulted

    in

    violent

    anti-American

    dem

    onstrations

    in

    Pakistan

    and

    Libya,

    the

    former

    culminating

    in

    the

    destruction

    of the

    U.S.

    Embassy

    in

    Islamabad.

    This

    suggested

    that

    an

    overt

    military

    threat

    against

    Iran

    over

    the

    hostage

    crisis

    might

    also

    serve

    to

    mobilize Muslim

    opinion

    against

    the

    United

    States, just

    as

    many

    Muslims reacted

    harshly against

    the Soviet

    invasion of

    Afghanistan

    in

    December.

    In

    sum,

    the Iranian Revolution

    was

    unquestionably

    the

    most

    disruptive

    upheaval

    in the

    Middle

    East

    in

    the last

    generation,

    exceeding

    in

    the breadth and

    depth

    of

    its

    implications

    even

    the

    Arab-Israeli

    wars

    of

    1967

    and

    1973.

    The

    damage

    to

    American and

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    546

    FOREIGN

    AFFAIRS

    Western

    political

    and economic

    interests

    in

    1979

    alone

    was

    very

    great.

    These losses

    were

    not

    immediately gains

    for the

    Soviet

    Union,

    but the

    spreading

    chaos

    in

    Iran,

    the

    emergence

    of

    strong

    regionalist

    tendencies,

    and

    the

    persistence

    of

    a

    small

    but

    organized

    Left

    raised

    the

    possibility

    that

    in

    the future the

    Soviet

    Union

    might

    be

    well

    positioned

    to

    exploit

    Iranian difficulties.

    This

    could

    pose

    new

    threats

    and

    new

    challenges

    to

    American

    policymakers,

    who

    showed

    few

    signs

    of

    having

    devised

    a

    strategy

    for

    dealing

    with

    Iran

    either

    under Khomeini

    or

    in

    the

    event

    of

    his

    departure.

    m

    In

    contrast

    to

    the

    events

    in

    Iran,

    the achievement of

    peace

    between

    Egypt

    and

    Israel

    represented

    a

    welcome

    development

    in

    the

    Middle

    East

    from

    the

    perspective

    of

    the

    United States

    and

    some

    of

    its

    closest

    allies.

    While

    considerably

    less

    than

    the

    compre

    hensive

    peace

    the Carter

    Administration

    had

    initially

    favored,

    the

    peace

    treaty

    signed

    in

    March

    was

    nonetheless

    a

    significant

    step

    toward

    the broader

    settlement

    which remained

    an

    objective

    of

    American

    diplomacy.

    The

    treaty

    was

    to

    be

    implemented

    in

    phases,

    resulting

    in

    full

    Israeli

    withdrawal from

    the

    Sinai

    by

    the

    spring

    of

    1982.

    Under

    the

    schedule,

    negotiations

    began

    in

    May

    1979 on a

    Palestinian

    self-governing

    authority

    to

    be elected

    for

    a

    five-year

    transitional

    period

    pending

    a

    final

    settlement.

    The

    target

    date for

    concluding

    these

    talks

    was

    May

    1980.

    Independently

    of the

    Palestinian

    negotiations,

    Egypt

    and

    Israel

    are

    obligated

    by

    the

    terms

    of the

    treaty

    to

    carry

    out

    a

    carefully

    balanced

    set

    of

    commitments.

    With

    the

    return

    of

    the Sinai oil

    fields

    to

    Egyptian

    control

    in

    1979,

    Egypt

    undertook

    to

    supply

    Israel

    with

    agreed

    quantities

    of

    oil

    at

    somewhat

    advantageous

    prices.

    Israel

    is

    now

    to

    withdraw

    its

    armed

    forces

    to a

    line

    running

    from El-Arish

    to

    Ras

    Muhammad

    by

    January

    26,

    1980,

    and

    at

    that

    time

    diplomatic

    relations

    are

    to

    be

    established

    and

    shortly

    thereafter

    ambassadors

    will

    be

    exchanged.

    A

    series

    of

    additional

    negotiations

    are

    envisaged

    after

    the

    establishment

    of

    diplomatic

    relations

    which

    will deal

    with

    trade,

    communications,

    cultural

    relations

    and

    civil

    aviation.

    In

    addition,

    the leaders

    of

    the

    two

    countries

    adopted

    the

    practice

    of

    periodic

    summit

    meetings

    to

    discuss

    bilateral

    relations

    as

    well

    as

    issues

    of broader

    strategic

    concern

    such

    as Soviet

    policy

    in the

    area.

    In

    brief,

    a

    remarkable

    new

    chapter

    in

    Egyptian-Israeli

    relations

    was

    being

    written.

    It

    was

    less

    clear,

    however,

    that

    this

    would

    lead

    to

    progress

    in

    solving

    the Palestinian

    question.

    Whatever

    the

    potential

    of the

    Camp

    David

    accords

    in

    laying

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    THE MIDDLE

    EAST

    CRISES

    547

    the

    foundations

    for

    an

    overall resolution of

    the

    Arab-Israeli

    con

    flict,

    the

    American role

    in

    the

    second

    phase

    of

    negotiations

    dealing

    with Palestinian

    autonomy

    was a

    sharp

    departure

    from

    previous

    efforts

    to

    press

    the

    reluctant

    parties

    to

    make

    substantive

    conces

    sions.

    This

    stance

    reflected

    changes

    in

    the

    American

    negotiating

    team,

    as

    President Carter

    and

    Secretary

    of

    State Vance

    in

    May

    1979 turned

    over

    much

    of

    the

    responsibility

    for the

    peace

    talks

    to

    Robert

    Strauss.

    Wary

    of

    taking

    on

    the

    sensitive

    questions

    involving

    the

    Palestinians

    until

    he

    was

    fully

    in

    command of the

    issues and

    had

    a

    feel

    for the

    personalities

    involved,

    Strauss

    preferred

    to

    go

    slow

    at

    the

    outset.

    The burden of

    the

    negotiations

    fell

    increasingly

    on

    the

    Egyp

    tians and

    Israelis,

    with the Americans

    contenting

    themselves with

    offering

    support

    and

    providing

    encouragement.

    This

    seemed

    to

    be

    a

    satisfactory

    arrangement

    to

    Sadat and

    Begin,

    who

    began

    to

    develop

    for the first time

    a

    cordial

    personal

    relationship.

    On

    two

    occasions

    the United

    States

    showed

    signs

    of renewed

    activism

    in

    the

    search

    to

    broaden the

    peace

    negotiations.

    By

    midsummer

    1979,

    an

    Arab

    initiative

    was

    being

    floated

    at

    the

    United

    Nations

    concerning

    a

    possible Security

    Council

    resolution

    which would reaffirm

    U.N.

    Resolutions

    242

    and

    338

    on

    Middle

    East

    peace,

    while

    adding language

    on

    the

    right

    of the

    Palestinians

    to

    self-determination. Rather

    than

    turn

    such

    efforts

    aside,

    the

    Administration

    decided

    to

    explore

    the

    possibility

    of

    producing

    a

    balanced

    resolution,

    which,

    if

    successful,

    could

    bring

    the

    Palestine

    Liberation

    Organization

    (PLO)

    for the

    first

    time

    to

    accept

    Israel's

    right

    to

    exist. This would

    remove

    an

    obstacle

    in

    the

    way

    of

    a

    U.S.

    Palestinian

    dialogue.

    In

    order

    to

    gain

    time

    to

    develop

    the

    text

    of

    a

    moderate

    U.N.

    resolution,

    U.S.

    diplomats

    in

    late

    July

    sought

    a

    postponement

    of

    the

    debate.

    As

    part

    of

    this

    initiative,

    the

    American Ambassador

    to

    the United

    Nations,

    Andrew

    Young,

    held

    an

    unannounced and

    unauthorized

    meeting

    with

    an

    official

    of

    the

    PLO.

    While

    success

    ful

    in

    obtaining

    the

    postponement,

    Young

    was

    less

    than

    forthcom

    ing

    in

    his

    reports

    to

    Washington

    of the

    meeting,

    resulting

    in

    a

    political

    crisis

    which

    ended

    in

    his

    resignation

    on

    August

    15.

    American black

    leaders

    resented

    what

    they

    saw

    as

    Israeli

    pressure

    to

    remove

    Young,

    and

    for

    a

    period

    of

    weeks

    black

    community

    leaders

    angrily

    denounced

    Israel and

    sought

    to

    open

    contacts

    with

    Palestinians.

    Meanwhile,

    the

    Administration

    doggedly

    pursued

    the

    search

    for

    a

    balanced U.N.

    resolution.

    Carter

    sent

    Strauss

    to

    the

    Middle

    East

    in

    mid-August

    with firm

    instructions

    to

    inform

    Begin

    and

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    THE MIDDLE

    EAST

    CRISES

    549

    balance

    of

    power

    so

    dramatically

    in

    favor

    of Israel

    that

    any

    future

    negotiations

    will

    largely

    result

    in

    Israel

    being

    able

    to

    dictate

    her

    own terms.

    Even

    if

    the

    Egyptian-Israeli

    treaty

    stands alone for

    the

    moment

    as a

    separate

    peace,

    from

    an

    American

    perspective

    it

    will

    serve

    several

    useful

    purposes.

    It

    virtually precludes

    a

    resumption

    of

    a

    large-scale

    Arab-Israeli

    war,

    such

    as

    occurred

    in

    June

    1967

    and

    October

    1973.

    Thus the

    risk

    of

    a

    U.S.-Soviet confrontation

    in

    the

    Middle East

    over

    this issue has been

    sharply

    reduced. Nor

    is

    the

    Soviet

    Union

    likely

    to reenter

    Egypt

    as a

    dominant

    power

    now

    that

    Egypt

    no

    longer

    requires large

    quantities

    of

    Soviet

    weapons.

    Indeed,

    a

    profound

    change

    has been

    taking place

    in

    Egypt's

    foreign policy.

    Sadat has

    embarked

    on

    a

    new

    strategy

    as

    a

    result

    of

    the

    peace

    treaty

    with Israel

    and

    it

    will be

    extraordinarily

    difficult

    for

    him

    to

    reverse course

    and

    return

    to

    a

    state

    of

    belliger

    ency.

    To

    do

    so

    would

    risk

    sacrificing

    most

    of

    the

    gains

    he has

    made

    in

    recovering Egyptian territory,

    and

    even more

    important

    in

    terms

    of the

    new

    U.S.-Egyptian

    strategic

    relationship.

    Peace

    with Israel

    is the

    precondition

    for

    Egypt becoming

    a

    special

    partner

    of the United States. Sadat

    understands this

    relationshipand seems

    prepared

    to live with its

    implications.

    But

    unlike

    the

    United

    States,

    Sadat

    has

    not

    welcomed Saudi

    Arabia

    as

    a

    party

    to

    the

    new

    relationship.

    He

    seems

    to

    prefer

    a

    direct

    U.S.-Egypt

    bilateral

    tie,

    undiluted

    by

    Saudi

    economic

    assistance.

    American

    aid,

    in

    his

    view,

    is

    more

    reliable

    and

    comes

    with fewer

    strings

    than

    Saudi aid.

    As

    a

    result,

    Sadat has

    often

    seemed

    to

    be

    deliberately pushing

    the Saudis

    away

    from

    Egypt,

    as

    in

    a

    provocative speech

    on

    May

    1,

    1979.

    He

    has likewise

    shown

    little

    concern

    with his

    growing

    isolation

    in

    the

    Arab

    world.

    The United

    States,

    from Sadat's

    perspective,

    is

    likely

    to make

    up

    for

    the

    loss

    of aid

    from

    the

    other

    Arabs.

    And

    to

    a

    substantial

    degree,

    the

    United

    States

    has

    been

    forthcoming.

    When Saudi

    Arabia

    withdrew

    its

    offer

    to

    pay

    for F-5E

    jets

    for

    Egypt,

    the

    United

    States

    took

    over

    the

    financing

    and

    even

    offered

    a

    better

    airplane,

    the

    F-4

    Phantom. One billion

    dollars

    annually

    in

    Amer

    ican

    economic

    assistance,

    coupled

    with

    $500

    million

    per

    year

    of

    military

    credits,

    represents

    a

    substantial

    step

    in

    the

    direction of

    meeting

    Egypt's

    real

    needs

    in

    these

    two

    areas,

    and there

    has

    been

    speculation

    that the amount of

    military

    aid

    may

    be

    significantly

    increased

    in

    fiscal

    year

    1981.

    Some of

    Sadat's

    colleagues

    are

    genuinely

    concerned

    by

    the

    degree

    to

    which

    he

    has

    split

    Egypt

    from the

    Arab world and

    by

    his

    somewhat

    unrealistic

    expectations

    of

    American

    support

    in

    the

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    THE MIDDLE

    EAST CRISES

    551

    exchange

    of ambassadors

    in

    February

    1980.

    On

    balance,

    it

    appears

    that

    the

    Egyptian-Israeli relationship

    will

    evolve

    with

    only

    mini

    mal

    movement

    on

    the

    Palestinian

    front.

    Neither

    breakthroughs

    nor

    breakdowns

    in

    the

    Camp

    David

    negotiations

    can

    be

    expected

    in

    the

    near

    future.

    Instead,

    the

    parties

    will

    tend

    to more

    urgent

    matters,

    and,

    it

    is

    hoped,

    recognize

    that

    in

    due

    course

    the

    Pales

    tinian

    issue

    will have

    to

    be

    confronted

    forthrightly

    and with

    the

    same

    degree

    of commitment

    and

    perseverance

    that

    was

    needed

    in

    the

    successful

    Egyptian-Israeli

    peace

    treaty

    negotiations.

    But

    the

    time

    for such

    renewed

    efforts

    will

    most

    likely

    be

    1981,

    not

    1980.

    While

    Egypt

    and Israel

    can

    take

    satisfaction

    in

    their

    new

    peaceful

    relationship,

    other

    Arabs have been

    deeply

    opposed

    to

    what

    they

    see

    as a

    separate

    peace.

    Meeting

    in

    Baghdad

    in

    March

    1979,

    after

    the

    signing

    of the

    peace

    treaty,

    nearly

    all

    Arab

    coun

    tries

    decided

    to

    break

    diplomatic

    relations with

    Egypt

    and

    to

    terminate

    aid

    commitments.

    Palestinians,

    through

    their

    self-designated spokesman,

    the Pal

    estine

    Liberation

    Organization,

    were

    vociferous critics

    of

    Sadat's

    policies,

    but

    were

    also active

    in

    promoting

    the

    idea

    that

    the

    Palestinians

    should be

    brought

    into

    negotiations

    at

    some

    time

    in

    the

    future.

    And while their attitude

    toward the

    Camp

    David

    process

    was

    predictably

    negative,

    they

    sought diplomatic

    recog

    nition

    in

    Western

    Europe

    and

    dropped

    hints that

    their future

    policies might

    be

    more

    moderate than

    those

    of

    the

    past.

    By

    the

    year's

    end,

    the PLO

    had received

    unprecedented

    recog

    nition

    in

    Europe,

    as

    well

    as

    in

    virtually

    all of

    the Third

    World.

    Even

    within

    the

    United

    States,

    significant

    currents

    of

    opinion

    were

    calling

    for

    some

    kind

    of

    dialogue

    between

    the

    United

    States

    and

    the PLO.

    The

    mainstream of

    the PLO

    welcomed these

    developments

    and

    anticipated

    that

    at

    some

    point

    contacts

    with

    the

    American

    government

    would

    take

    place.

    But

    the

    PLO

    still

    seemed

    reluctant

    to

    enforce

    a

    uniform

    policy

    on

    its divided

    ranks,

    and

    in

    particular

    it

    continued

    to

    withhold

    the

    card,

    as

    PLO

    chairman

    Yasir Arafat

    called

    it,

    of

    recognizing

    Israel.

    There

    were

    some,

    however,

    who

    saw

    in

    the

    Jordanian-PLO

    dialogue

    a

    positive

    step

    toward Palestinian

    acceptance

    not

    only

    of the

    reality

    of

    Israel,

    but

    also of

    the

    inevitability

    of

    a

    link

    between

    any

    future

    Palestin

    ian

    entity

    and

    Jordan.

    IV

    If

    the

    PLO

    seemed

    to

    be

    relatively

    self-confident and assertive

    during

    much of

    1979,

    the

    same

    could

    not

    be said

    of

    Saudi Arabia.

    There

    the

    events

    of

    Iran

    and

    the

    Egyptian-Israeli

    peace

    treaty

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    552

    FOREIGN

    AFFAIRS

    caused

    a

    great

    deal

    of

    anxiety

    and

    ambivalence,

    coupled

    with

    a

    loss of

    confidence

    in

    the

    United

    States. To

    allay

    the

    fears

    caused

    by

    the events in Iran,

    Secretary

    of Defense Harold Brown visited

    Saudi

    Arabia

    in

    February,

    as

    well

    as

    Egypt,

    Israel and

    Jordan.

    He

    promised

    a

    more

    active

    U.S.

    role

    in

    the

    region,

    and

    specifically

    consulted

    with the Saudis

    on

    threats

    to

    their

    security.

    The Saudis

    felt

    particularly

    vulnerable

    when,

    just

    after

    Secre

    tary

    Brown's

    trip,

    South Yemen

    attacked North

    Yemen.

    That

    brief

    incident alarmed

    the

    Saudis,

    who

    appealed

    to

    the

    United

    States

    for

    immediate assistance. The

    American

    response

    was

    swift

    and

    substantial.

    Nearly

    $500

    million

    in

    arms was

    promised

    and

    rapidly

    delivered to the Sanaa

    regime,

    but this was not immedi

    ately

    translated

    into

    U.S. influence.

    Instead,

    North

    Yemen contin

    ued

    to

    hedge

    its

    bets

    by

    also

    accepting

    arms

    from the

    Soviets,

    talking

    of

    unity

    with South

    Yemen,

    and

    keeping

    some

    distance

    from

    the Saudi

    embrace.

    Anxious

    to

    preserve

    a

    close

    relationship

    with

    the United

    States

    despite

    differences

    over

    the

    Palestinian

    issue

    and

    Camp

    David,

    the Saudis

    were

    generally cooperative

    on

    oil

    pricing

    and

    pro

    duction

    during

    1979.2

    In

    January

    1979,

    the Saudis

    were

    producing

    at their maximum sustainable

    capacity,

    about 10.5 million barrels

    per

    day

    (mb/d),

    in

    order

    to

    make

    up

    for

    the

    shortfall in Iranian

    production.

    But

    even

    at

    that

    level,

    supply

    was

    not

    able

    to meet

    demand.

    In

    these

    circumstances,

    the

    Saudis

    were

    unable

    to

    re

    strain

    OPEC

    decisions

    in

    mid-1979

    to

    drive the

    price

    of oil

    up

    by

    60

    percent.

    Saudi

    Arabia

    did, however,

    sell its

    oil

    at

    $18

    per

    barrel

    during

    most

    of the last

    two

    quarters

    of

    1979,

    and

    output

    was

    kept

    at

    9.5

    mb/d.

    Other

    OPEC members

    were

    charging

    $6-10

    more

    per

    barrel

    than the

    Saudis,

    and

    the

    spot

    market

    price

    of

    a

    barrel

    of oil hit $40. When it

    appeared

    as if Saudi Arabia was

    forgoing

    current

    income

    largely

    as a

    subsidy

    to

    American oil

    companies

    (whose

    profits

    hit record

    highs by selling

    less

    expensive

    Saudi oil

    in

    the

    uncontrolled

    European

    market),

    the incentives

    for further

    Saudi

    price

    restraint

    were

    weakened.

    Just

    before

    the Caracas

    meeting

    of OPEC

    in

    December,

    the Saudis

    raised

    the

    price

    of

    their

    oil

    to

    $24

    per

    barrel.

    Price

    increases

    helped

    the Saudis

    meet

    their

    growing appetite

    for

    income.

    For

    two

    years,

    in

    1977 and

    1978,

    the

    Saudis

    had

    overspent

    their

    budget

    and had been

    obliged

    to draw down on

    some

    of

    their

    reserve

    holdings.

    The oil

    price

    increases

    of

    1979

    returned

    Saudi

    Arabia

    to

    a

    position

    of

    accumulating

    substantial

    2

    For

    details,

    see

    the

    article

    by

    Robert

    Stobaugh

    and Daniel

    Yergin

    in

    this

    issue.

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    THE

    MIDDLE

    EAST

    CRISES

    557

    eliminated

    in

    favor

    of the

    Khalq

    faction led

    by

    Noor

    Mohammad

    Taraki

    and

    Hafizullah

    Amin.

    As the Taraki

    regime

    tried to extend its

    sway

    into the

    country

    side,

    it

    encountered

    armed resistance from

    fiercely

    independent

    Afghan

    tribesmen.

    By

    the fall of

    1979,

    the

    Soviets

    apparently

    concluded

    that

    President Taraki

    needed

    to

    broaden

    his

    political

    base

    and

    to

    that end

    he should

    remove

    his

    controversial Prime

    Minister

    Hafizullah

    Amin.

    Not

    surprisingly,

    Amin

    reacted

    by

    ousting

    Taraki,

    in

    a

    coup

    in

    September

    that

    caught

    Moscow

    unprepared.

    From that

    moment

    on,

    the Soviets

    appear

    to

    have

    developed

    a

    strategy

    for

    removing

    Amin and

    replacing

    him with a more

    amenable

    client. Under

    the

    guise

    of

    helping

    the

    regime

    against

    the

    Muslim

    rebels,

    Soviet

    military

    advisers

    entered

    Afghanistan,

    followed

    in

    late December

    by

    combat

    troops.

    In

    addition,

    several

    Soviet

    divisions

    were

    poised

    across

    the

    border.

    Soviet forces

    first

    settled

    the

    score

    with

    Amin in

    a

    quickly

    executed

    coup

    which

    brought

    Parcham leader Babrak

    Karmal

    to

    power.

    Amin

    himself

    was

    executed,

    as

    Soviet

    troops

    poured

    into

    Afghanistan,

    their

    numbers

    exceeding

    50,000

    within

    a

    matter

    of

    days,

    clearly

    with

    the

    objective

    of

    putting

    down the

    insurgency

    and

    establishing

    firm

    and

    lasting

    Soviet

    control.

    This

    unprecedented

    display

    of

    Soviet

    military

    power

    outside

    Eastern

    Europe

    brought

    U.S.-Soviet

    relations

    to

    a

    crisis

    point

    and

    raised serious

    questions

    in

    Washington

    about

    Soviet

    aims. Presi

    dent Carter

    noted

    that Soviet

    behavior

    in

    Afghanistan

    had

    done

    more

    to

    educate

    him

    about

    Soviet

    intentions

    than

    any

    other

    event

    during

    his

    presidency.

    As

    a

    result,

    he

    postponed

    Senate consider

    ation

    of

    the SALT

    II

    treaty,

    cancelled

    17

    million

    tons

    of

    grain

    sales

    to the

    Soviet

    Union,

    and

    announced

    a

    series

    of

    other

    punitive

    measures.

    If

    Iran

    were more

    stable,

    if

    oil

    were

    less

    vital

    to

    the

    West,

    and

    if

    U.S.-Soviet relations

    were

    otherwise

    in

    good

    repair,

    the

    events

    in

    Afghanistan

    might

    have

    had

    limited

    impact

    on

    American

    thinking.

    But

    in

    the

    existing

    circumstances,

    the

    Soviet

    occupation

    of

    Afghanistan

    served

    to

    crystallize

    a

    number of

    converging

    trends,

    the

    net

    effect

    of

    which

    was

    to

    reinforce

    American

    concern

    for

    Persian Gulf

    security.

    While Iran was

    likely

    to

    prove

    the most

    significant

    arena

    of

    confrontation,

    it

    was

    neighboring

    Pakistan

    and its

    Baluchistan

    province

    that seemed

    most

    vulnerable

    to

    pressures

    from

    the Soviet

    military

    presence

    in

    Afghanistan.

    Arms

    supplies

    to

    Pakistan

    were

    one

    response;

    aid

    to

    Afghan

    rebels

    another. The

    search

    for

    naval

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    558

    FOREIGN

    AFFAIRS

    and

    air

    facilities

    to

    support

    a

    stronger

    American

    military

    posture

    in

    the

    area

    was

    also

    accelerated.

    But

    the

    diplomatic

    challenge

    loomed

    large.

    Could the U.S.

    capitalize

    on

    Pakistani,

    Iranian and

    even

    Iraqi

    fears

    of Soviet

    expansion

    to

    insure

    that

    Moscow's

    influence

    could

    be contained? Or had U.S.

    prestige

    sunk

    so

    low

    that

    Afghanistan's

    neighbors

    would

    prefer

    to

    accommodate the

    Soviets

    rather than

    try

    to

    resist Soviet

    pressures?

    As

    the 1980s

    began,

    the

    question

    could

    be

    raised,

    but

    not

    answered.

    VI

    As of

    mid-January

    1980, it is too

    early

    to assess the full

    impli

    cations

    of

    the

    Soviet invasion

    of

    Afghanistan.

    Continuing

    Soviet

    dominance

    there could

    threaten Pakistan

    in

    the

    immediate future.

    By

    supporting

    Baluchi

    dissidents,

    the

    Soviets could weaken

    both

    Pakistan

    and

    Iran,

    perhaps

    eventually bringing

    the

    Soviets closer

    to

    gaining

    a

    foothold

    on

    the Arabian Sea.

    In

    any

    event,

    there

    can

    be

    no

    doubt that

    in

    Middle

    East

    terms

    what has

    happened

    in

    Afghanistan

    has

    greatly

    accentuated

    the

    already

    serious

    problem

    of

    security

    and

    stability

    in

    the vital

    region

    surrounding

    the world's

    largest

    reserves of oil.

    Nor is

    it

    now

    possible

    to

    assess

    the reaction

    in

    Iran

    to

    a

    totally

    Soviet-dominated

    Afghanistan.

    One

    might

    expect

    Iranians

    to

    recognize

    that

    it is

    the

    Soviet

    Union that threatens

    the

    indepen

    dence and

    unity

    of

    Iran. This

    could result

    in

    a

    turn

    to

    the United

    States

    after

    the

    hostage

    issue has been

    resolved.

    But

    Khomeini

    shows

    little

    sign

    of

    drawing

    such

    conclusions,

    and

    thus Iran's

    future

    orientation

    remains

    clouded.

    Many

    in

    the

    Middle

    East

    expect

    that

    Iran

    will

    eventually

    slip

    into the Soviet

    sphere

    of influence. This could occur if a pro

    Soviet

    regime

    were

    to

    come to

    power.

    Or

    it

    could

    result from

    Iran's

    fragmentation,

    with autonomous

    governments

    in

    Azer

    baijan

    and

    Kurdistan

    turning

    to

    Moscow for

    support,

    as

    happened

    after

    World

    War

    II.

    The

    Soviets

    have

    several factors

    in their favor

    in

    Iran.

    They

    could

    provide

    needed

    military equipment

    to

    the Iranian armed

    forces.

    They

    could

    offer

    protection

    against

    Iraqi

    military

    threats.

    They

    could

    help

    Iran circumvent

    a

    U.S.-sponsored

    economic

    blockade. And

    they

    have

    supporters

    in crucial sectors such as the

    Tudeh

    party,

    among

    the oil-field

    workers,

    and

    in

    the

    provinces

    along

    the

    Soviet

    border.

    Iran

    will

    not

    inevitably

    go

    the

    way

    of

    Afghanistan,

    and

    the

    Soviets

    will doubtless

    have

    difficult decisions

    to

    make

    as

    they

    pursue

    their

    long-term

    objective

    of

    enhancing

    their influence

    in

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    THE MIDDLE

    EAST

    CRISES

    559

    Iran.

    But

    the Soviet

    incentive

    for

    gaining

    a

    privileged

    position

    in

    Iran

    is

    likely

    to

    grow

    in

    the

    1980s

    if

    the

    U.S.S.R.

    does

    in

    fact

    become

    an

    importer

    of

    significant

    quantities

    of

    Middle Eastern

    oil. Predictions

    of Soviet

    supply

    and demand for

    oil

    are

    uncertain,

    but

    one

    line

    of

    analysis

    leads

    to

    the

    conclusion that the

    Soviets

    will

    need

    to

    import

    oil

    by

    the

    mid-1980s.

    For

    Moscow,

    this raises the

    problem

    of

    how

    to

    pay

    for

    the

    oil,

    since

    virtually

    all

    producers

    insist

    on

    payment

    in

    hard

    currencies.

    If

    the

    Soviets

    were

    to

    import

    only

    one

    mb/d

    at

    1980

    prices,

    they

    would

    need

    to

    spend

    nearly

    $10

    billion

    annually. Any

    arrange

    ments

    whereby

    the Soviets

    could

    supply

    arms or

    goods

    to

    offset

    this

    cost

    would

    be

    highly

    advantageous,

    and Iran

    stands

    out

    as

    one

    country

    where such

    terms

    might

    be

    met

    if

    a

    sufficiently

    friendly

    or

    dependent

    regime

    were

    to

    come

    to

    power.

    Thus,

    in

    assessing

    Soviet

    attempts

    to

    take

    advantage

    of

    insta

    bility

    in

    the

    Persian Gulf

    and

    Arabian

    Peninsula,

    Iran is

    likely

    to

    be

    the

    most

    dangerous

    arena

    of confrontation.

    Having

    failed

    to

    come

    to

    terms

    with

    Khomeini,

    the

    United States

    may

    begin

    to

    look

    beyond

    his

    rule

    to

    the

    kind

    of

    Iran that

    may

    emerge

    at

    a

    later date.

    For

    the

    moment,

    American

    influence

    over

    Iranian

    events

    is

    at

    the

    lowest

    point

    since World

    War

    II.

    But

    whatever

    the

    outcome

    of the

    hostage

    crisis,

    President Carter's

    dilemmas

    will

    not

    be

    easily

    resolved.

    The

    question

    will

    remain of how

    to

    influence

    events

    in

    Iran

    so

    that

    eventually

    U.S.-Iranian

    relations

    can

    be

    resumed

    on

    a

    level

    commensurate

    with

    American

    interests

    in

    the

    region.

    One element

    of

    an

    effective

    American

    Middle

    East

    policy

    involves

    military

    power.

    During

    the

    Iran

    hostage

    crisis,

    it

    became

    common

    wisdom

    to

    declare that the post-Vietnam

    era

    had

    come

    to

    a

    close.

    Iran

    had

    supposedly

    convinced

    Americans

    that

    an

    anti

    interventionist

    foreign policy

    was

    inadequate,

    that

    military

    power

    could

    not

    be

    neglected,

    and

    that U.S.

    prestige

    must

    quickly

    be

    restored

    if

    vital interests

    were

    to

    be

    protected.

    In

    this

    atmosphere,

    it

    was

    almost inevitable

    that

    President

    Carter

    would

    seek

    a

    larger

    military budget

    and

    that

    plans

    would

    be made

    to

    acquire

    U.S.

    bases

    in

    the

    Persian Gulf

    region.

    A

    reflection of

    this

    change

    was

    an

    increase

    in

    U.S.

    military

    capabilities

    in

    the

    Indian

    Ocean and

    Persian Gulf regions by the end of 1979. Two ships were added to

    the

    Bahrain-based Mideast

    Force;

    units

    of the Pacific

    and

    Medi

    terranean

    fleets

    were

    rotated into the

    Indian Ocean

    to

    create

    a

    continuous

    presence;

    defense

    spending

    for

    a

    Rapid

    Deployment

    Force

    was on

    the

    rise;

    U.S.

    radar

    planes

    were

    operating

    from

    Egyptian

    airfields;

    and

    at

    year's

    end

    a

    U.S.

    mission

    was

    sent to

    Saudi

    Arabia, Oman,

    Somalia

    and

    Kenya

    to

    look

    at

    basing

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    560

    FOREIGN

    AFFAIRS

    possibilities.

    It is entirely appropriate to think of how tomake this dimension

    of the U.S.

    presence

    more

    effective

    and

    credible.

    But

    there is

    a

    risk

    of

    concentrating

    on

    the

    technical

    requirements

    of the

    military

    without due attention

    to

    political

    and

    diplomatic

    contexts.

    Bases

    or

    facilities

    may

    or

    may

    not

    be

    useful

    in

    a

    strictly

    military

    sense,

    but

    if

    they

    serve

    to

    weaken

    a

    regime,

    or

    provide

    openings

    for

    Soviet

    influence,

    they

    may

    be

    politically

    counterproductive.

    In

    addition

    to

    strengthening

    the

    U.S.

    military

    presence

    in

    the

    Middle

    East,

    some

    analysts

    have

    recommended

    that

    the

    United

    States take the lead in developing a collective security framework

    modeled

    on

    NATO.

    Egypt,

    Israel

    and

    Saudi

    Arabia

    are

    usually

    mentioned

    as

    the

    prime

    candidates;

    the

    incentive would

    presum

    ably

    be

    a

    common

    fear of

    Soviet

    power.

    The NATO

    analogy

    serves more

    to

    highlight

    the

    difficulties of

    security

    in

    the

    Middle

    East

    than

    to

    prescribe

    a

    remedy.

    Whereas

    the

    NATO countries tended

    to

    perceive

    the

    Soviet threat

    in

    similar

    terms

    and held

    many

    political

    values

    in

    common,

    the

    major

    powers

    of the

    Middle East

    are

    far from

    being

    a

    cohesive

    bloc.

    Egypt

    and Israel

    are

    groping

    their

    way

    toward

    a

    new

    relation

    ship

    which

    might

    in

    time include

    cooperation

    in

    the

    security

    area,

    but the

    United States

    can

    do

    little

    to

    force the

    pace.

    Saudi

    Arabia

    wants

    no

    part

    of

    an

    Egyptian-Israeli

    alliance,

    seeing

    in

    their

    relationship

    one

    of the

    prime

    reasons

    for

    growing

    Soviet

    influence

    in

    the Arab

    world.

    For the

    moment,

    national

    rivalries overshadow

    any

    recognition

    of

    common

    security

    problems.

    The

    best that

    the

    United

    States

    can

    hope

    for

    is

    a

    network of

    bilateral relations?

    with Israel, Egypt, Saudi Arabia, Oman, Jordan and Somalia?

    which

    might

    in

    time lead

    to

    broader

    cooperation.

    VII

    While the

    events

    of 1979

    in

    the Middle East will

    undoubtedly

    have

    the

    effect

    on

    U.S.

    policy

    of

    pushing

    the

    Persian

    Gulf and

    Arabian

    Peninsula

    region

    to

    the

    top

    of

    the

    foreign

    policy agenda,

    it

    would

    be

    misleading

    to

    conclude that

    the

    more

    conventional

    American concerns with the Arab-Israeli conflict can be relegated

    indefinitely

    to

    the back burner.

    In

    the

    first

    place,

    there

    is

    a

    link

    between

    stability

    in

    the

    Arab

    oil-producing

    areas

    and the

    Pales

    tinian issue.

    Second,

    the United States continues

    to

    occupy

    a

    unique

    diplomatic

    position

    as

    the

    only acceptable

    and

    credible

    mediator

    in the

    Arab-Israeli

    dispute.

    The successful

    Egyptian

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    MIDDLE

    EAST

    CRISES

    561

    Israeli

    negotiations

    stand

    as

    testimony

    to

    what

    can

    be

    achieved

    by persistent and imaginative American diplomacy.

    Several

    specific

    policy

    choices

    involving

    the Palestinian

    question

    will

    be

    faced

    by

    the

    Administration

    in

    1980 and

    beyond.

    Most

    important

    will be

    how

    to

    proceed

    in

    the

    negotiations

    after the

    May

    1980

    target

    date has

    passed.

    The Israelis

    are

    likely

    to

    want

    to

    continue

    the

    talks

    within the

    Camp

    David

    framework. The

    Egyptians

    may urge

    a

    broadening

    of the

    negotiations.

    As

    the

    architect

    of

    Camp

    David,

    President

    Carter

    will

    become

    the

    likely

    arbitrator.

    If

    the

    negotiations

    have

    produced

    few

    results

    in

    the

    course of one year, it will be hard to justify continuing with the

    same

    terms

    of

    reference.

    This

    suggests

    that the formal

    talks

    might

    be

    recessed,

    pending

    a

    redefinition

    of the

    underlying

    principles

    of

    a

    Palestinian

    settlement,

    or

    that the United

    States

    might begin

    to

    put

    forward

    substantive

    positions

    of

    its

    own

    in

    order

    to

    keep

    the

    negotiations

    alive.

    The

    U.S.

    motivation

    for

    resuming

    an

    activist

    role

    in

    the Pales

    tinian

    negotiations

    need

    not

    be fear that

    a

    stalemate

    could

    jeop

    ardize

    Egyptian-Israeli

    relations.

    And

    activism

    for its

    own

    sake

    is

    pointless. But the Administration does need to think about the

    questions

    of

    stability,

    Soviet

    influence,

    and American

    credibility

    in

    the Arab

    world,

    and

    to

    some

    extent

    each

    of these

    issues

    will

    be

    affected

    by

    the

    stance

    taken

    by

    the

    United States

    in

    the

    ongoing

    peace

    negotiations.

    It

    will do

    little

    for

    U.S.

    prestige

    as a

    superpower

    if

    Egypt

    and

    Israel

    appear

    to

    be

    dictating

    American

    policy

    in

    the Middle

    East.

    Quite

    apart

    from

    the

    perceived

    interests of America's

    two

    partners

    in

    the

    peace

    negotiations,

    the United

    States has

    important

    rela

    tions with Saudi Arabia, the Gulf states and Jordan. Sadat may

    treat

    the Saudis

    and

    King

    Hussein

    with

    disdain,

    but

    that

    is

    no

    reason

    for

    Washington

    to

    follow

    suit.

    By refusing

    to

    see

    King

    Hussein

    in

    the

    fall

    of

    1979,

    President

    Carter added

    unnecessary

    strain

    to

    U.S.-Jordanian

    relations and

    reduced

    even

    further

    the

    chance

    that

    Jordan

    would

    adopt

    a

    helpful

    role

    in

    the

    search for

    a

    Palestinian

    settlement.

    Indeed,

    the

    deterioration of

    U.S.-Jorda

    nian

    ties

    during

    1979

    was a

    striking

    and

    worrisome

    development.

    Thus,

    one

    step

    toward

    restoring

    the

    United States

    to

    an

    influ

    ential role in the Arab Middle East will involve a resumption of

    serious

    initiatives

    to

    resolve the

    Palestinian issue.

    No

    one

    expects

    instant

    results,

    especially

    in

    an

    election

    year,

    but

    many

    Arabs

    still

    look

    to

    Washington

    as

    holding

    the

    key

    to

    peace

    in

    the

    region.

    This

    is

    both

    an

    asset

    and

    a

    liability,

    depending

    on

    how

    the

    Adminis

    tration

    plays

    its

    hand.

    But

    to turn

    away

    from

    the

    Arab-Israeli

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