When this request was first received, it was referred for comment to the appropriate United Kingdom and United States authorities. We learned that the United Kingdom, without reference to the Arms Working Party, had agreed to provide Israel with 7,000 rounds. In the circumstances, the United Kingdom authorities expressed the hope that, if we decided to meet the Israel request, we would not provide more than 7,000 rounds, so that the total would not exceed 14,000 rounds. The United Kingdom attitude was apparently based on the probability that the ammunition would be used in tanks.

2. The United States authorities, who indicated that they would "not interpose any objection" to our filling the order for 10,000 rounds apparently based their thinking on the assumption that this ammunition would be used for field artillery. In the circumstances, our people in Washington were asked to discuss the question again with the State Department. The attached reply has just been received.? You will see that "while United States authorities would be just as happy if no 75 mm ammunition were to be sold to Israel, they did not believe that the quantities which we were considering would offer grounds for serious objection on their part."

3. In my memorandum to you of March 4,? I indicated that, unless very strong and convincing reasons were given why we should not permit the sale of the full amount of 10,000 rounds, it was not expected that we would recommend any reduction in the order. In the light of the attached letter from Washington, in which it is indicated that, within the range of 10,000 to 20,000 rounds, an export of this type of ammunition would not cause too much concern, and, in view of the fact that the United Kingdom is itself permitting the export of 7,000 rounds, there would not appear to be any substantial reason for refusing the original request for 10,000 rounds.

4. Because of the earlier U.K. suggestion that our order should be reduced to 7,000 rounds, I think that we would wish to consider further the question of the provision of an additional 5,000 rounds. At the present stage, I do not think that we would necessarily recommend against the additional order, but we would like to have time to discuss the question with the J.I.B. and others concerned. ⁴⁹

R.A. M[ACKAY]