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THE PRESIDENT HAS SEEN REVIEW OF THURS AM PAPERS March 21, 1974 FOREIGN AFFAIRS Monitor notes "flurry of dismay" caused by RN's Chic remarks re: Europe "has been dissipated somewhat from both sides of Atl. RN himself eased the way¹¹ in Houston, and "another move which has helped¹¹ is W. German offset agreement. Question remains, tho, why RN-HAK "thought it necessary to lecture Europeans in such stern terms. Perhaps it was a deliberate attempt to prod Eur If so, net result seems likely to be salutary. But one would like to see a less abrasive way of going about business of repairing the relationship, 11 says Monitor. Crosby Noyes finds RN's foreign policy in trouble in almost every area. The record of accomplishment remains, but there are serious doubts both in and out of Admin that momentum of last 5 yrs can be maintained in next 3. Relations w/Europe are worst in 20 years and even Europeans worried about their security are offended by crudity of US demands. SALT is going nowhere w/strong impression being that if Soviets conclude US is serious in demanding an "in- stitutionalized balance of power, they'll very rapidly lose interest" in talks or stall in hopes of dealing w/"more compliant" Admin in future. Noyes also notes VN fighting has reached its highest point since '72 C-F. But perhaps the greatest crisis is in M-E. Noyes finds little evidence Arabs or Israelis are prepared to make necessary concessions. "It's quite possible HAK's efforts will founder on the shoals of mutual suspicion and hostility. 11 Burrington on Today Byline reported Jerusalem diplomatic sources aren't optimistic re: disengagement. Syria and Israel are "worlds apart¹¹ with Syria's statements, re: never compromising, leaving Israel in an uncompromising mood. But Israelis feel HAK is in a compromising mood. Thus talks w/HAK may provide the moment of truth when Israel says no to HAK and faces the consequences. Diplomatic sources say HAK knows the price of continuing good re- lations w/Egypt is Golan disengagement. Arab oil policy is also a factor in situation. But USSR has advised Syria to be tough. Thus fear is HAK may really put the screws to Israel w/no one sure what'll happen if Israel says no to compromises. If Israel says yes, it's assumed the gov't will fall. Thus Israelis aren't looking forward to meetings w/HAK.