Statement on Implementation of the United States-Israel Oil Agreement
(October 17, 1980)
THE PRESIDENT. Minister Modal and Ambassador Evron,
Secretary Muskie, Mrs. Modal, and ladies and gentlemen:
I'm very pleased to announce this morning the completion
of our contingency arrangements for assuring Israel's oil supply security.
These arrangements further fulfill a promise that I
made last year in connection with Israel's withdrawal from the Gulf
of Suez oil fields and its conclusion of the treaty of peace with Egypt.
In making peace, Israel committed itself to dependence solely on imported
oil—a very bold and courageous and generous decision in this troubled
time. At the time of Israel's withdrawal in 1975 from a portion of the
Egyptian Sinai, the United States gave assurance that Israel would count
on our help and could depend on us if it could not attain oil during
its own efforts.
We renewed and extended this duration of the assurance
in June of 1979, so that the establishment of peace with Egypt would
not lessen Israel's long-range energy security. Now we have spelled
out the emergency conditions under which the 1979 oil supply agreement
may be activated. This contingency plan is a carefully defined understanding
between friends, designed to ensure that all relevant concerns are taken
into account. Both our nations hope this agreement will never have to
be activated, but if it should become necessary, the United States will
be a steadfast and dependable friend of Israel.
This agreement is one aspect of what I hope will be
a broad range of cooperation in strengthening Israel's energy security.
We're exploring now how we might work together further on research and
development and for new energy technologies, especially shale oil extraction
and the use of solar power for energy.
Our cooperation in energy and in other fields is for
the cause of peace. It is against no nation. It is for the people who
yearn for a secure future. It is in this spirit that I congratulate
the negotiators of the oil supply understandings and invite now Secretary
Muskie, representing the United States of America, and Minister Modal,
representing the great nation of Israel, to proceed with the signing
of the appropriate documents.
[At this point, Secretary of State Edmund S. Muskie
and Israeli Minister of Energy and Infrastructure Yitzhak Modal signed
the "Contingency Implementing Arrangements for the Memorandum of
Agreement of June 22, 1979 Between Israel and the United States."
The President then resumed speaking.]
I might say that Minister Modai is a very effective
negotiator.
MINISTER MODAI. Thank you very much, Mr. President.
THE PRESIDENT. Mr. Minister, would you like to make
a comment?
MINISTER MODAI. Mr. President, Mr. Secretary of State,
members of the administration, my Israeli colleagues:
The peace agreement, Mr. President, between Israel
and Egypt, is probably the most important event, certainly in the Middle
East, but probably also in the entire world in this generation.
It came about due to the leadership of Prime Minister
Ben-Gurion (Begin) 1, President Sadat, and through the devoted efforts
and active participation of yourself, Mr. President.
1 White House correction.
The State of Israel, in order to achieve this peace
agreement, has made very large sacrifices. A major sacrifice was the
relinquishing of the Alma oil field, which we discovered and developed,
and this in addition to giving up the Abu Rudeis oil field as part of
the interim agreement in 1975.
Now you, Mr. President, and the Congress understood
the big risk taken by the State of Israel in giving up its opportunity
for oil self-sufficiency and, therefore, an agreement that guarantees
oil supply to Israel was signed in June of 1979. Now, that agreement
did not contain the specifications of the conditions in which that agreement
could have been activated, and therefore we felt, we in Israel felt
that we need to have a better definition of which are the conditions
in which your guarantee will come into effect. After tedious, long negotiations—over
a year—we are finally signing, here today, the specifications
under which that agreement will come into effect.
That is certainly the completion of a promise, I may
say, Mr. President, of an offer made by you when you were in Israel,
I believe in February of 1979.
Obviously, nobody can foresee future developments in
the next 15—now it's only 14—years, but we are very happy
to have a document which is so clear, so detailed, and which relates
to such a vital and delicate issue. I would like to thank you, Mr. President,
you Mr. Secretary, and your staffs for a job so very well done. Thank
you.
THE PRESIDENT. I'd like to say to the press that following
this ceremony, or perhaps already, the details of the agreement will
be described. Has that been done yet? It will be done. So, your questions
about the detailed agreement will be answered after this meeting.
I would like to say, informally but sincerely, on behalf
of the American people, that we are very proud to have this agreement.
The proposal was made voluntarily by me, on my own initiative, when
I was in Jerusalem at the time when we were trying to bring to a conclusion
the basic elements of the peace treaty between Israel and Egypt. Israel
has taken a courageous step in bringing peace to that entire area by
voluntarily giving up control of and the use of these oil wells, some
of which they themselves discovered and developed.
We anticipate that Israel will continue to receive
their oil from present sources, but if those supplies should be interrupted
or if exorbitant prices should be imposed upon Israel, above and beyond
normal marketing prices as described in this detailed document, then
the United States will meet this obligation to our friend, the Government
of Israel.
I consider this to be not only an investment in the
security of Israel but also a very sound investment in the security
of the United States of America. And it's a further demonstration of
our unfaltering commitment and steady progress toward the comprehensive
peace in the Middle East, which all of us so deeply desire, based upon
the security of Israel, in every sense and meaning of that word.
Mr. Minister, thank you very much for your coming here
to conclude this document. And I hope you'll extend my best wishes to
Prime Minister Begin and to all the officials of Israel who've made
this progress possible. Thank you, sir.
MINISTER MODAI. Mr. President—
THE PRESIDENT. Yes, sir?
MINISTER MODAI. I would like to wish you good luck
with your endeavors.
THE PRESIDENT. Well, thank you very much. I appreciate
that. That means a lot to me.
Thank you, everybody.
Sources: Public Papers of the President |