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Ben-Gurion stepped down as prime minister in June 1963, angered by the results of a review of the decade-old Lavon affair that had not, in his view, attached blame adequately to those responsible for that failed and illegal operation. His efforts at building the Israeli state had also brought him into conflict with his own party’s ideology, the Orthodox religious establishment, and the international Zionist movement. Gathering about him a group of younger leaders in 1965, notably Shimon Peres and Moshe Dayan, Ben-Gurion organized a new political party, Rafi, though he eventually retired from politics permanently in 1970 when that party failed to generate support.
The Six-Day War
Ben-Gurion’s successor, Levi Eshkol, had much less experience in defense issues and relied heavily on Rabin. Neither the Jordanian nor the Syrian borders were quiet during the years leading up to the Six-Day War, but all Israelis were taken by surprise when in May 1967 increasingly violent clashes with Palestinian guerrillas and Syrian army forces along Lake Tiberias led to a general crisis. The Soviet Union alleged that Israel was mobilizing to attack Syria, and the Syrian government, in turn, chided President Nasser of Egypt for inaction. Nasser then mobilized his own forces, which he promptly sent into the Sinai after he ordered that UN forces there be withdrawn, and announced a blockade of the Strait of Tiran. The encirclement of Israel was complete when King Hussein of Jordan, despite secret Israeli pleas, felt compelled to join the Arab war coalition.
In reaction, Eshkol mobilized the IDF and sent his foreign minister, Abba Eban, on a futile trip to seek French, British, and American aid. After Rabin suffered a breakdown from exhaustion, the coalition parties forced Eshkol to appoint Moshe Dayan as defense minister and to create a national unity government that included Menachem Begin, the main opposition leader. The next day, June 5, Israeli planes destroyed the Egyptian air force on the ground in a preemptive strike that began the total rout of all Egyptian, Jordanian, and Syrian forces. Israeli troops captured huge quantities of arms and took many prisoners. Six days later, Israeli troops stood victorious along the Suez Canal, on the banks of the Jordan River, and atop the Golan Heights. Most significant to all involved, Israel had captured the remaining sections of Jerusalem not already under its control, including the Old City and the Western Wall.
Troubled victory
Israel’s triumph in the Six-Day War (the name by which this conflict became known) brought new territories—the Sinai Peninsula, the West Bank, the Gaza Strip, the Golan Heights, and East Jerusalem—under Jewish control. However, the war also brought new complications, including rule over more than one million additional Palestinians in the occupied territories; extended military lines along the Suez Canal, the Golan Heights, and the Jordan River that severely strained its small standing army; and strong international opposition to the expansion of Israeli control, especially the absorption of the Old City of Jerusalem. Protesting Israel’s surprise attack, French Pres. Charles de Gaulle imposed an arms embargo on Israel, depriving the air force of its only source for advanced warplanes. This situation was resolved when the United States agreed to supply Israel with U.S. fighters to replace the French planes.
It was not clear how military victory could be turned into peace. Shortly after the war’s end, Israel began that quest, but it would take more than a decade and involve yet another war before yielding any results. Eshkol’s secret offer to trade much of the newly won territory for peace agreements with Egypt, Jordan, and Syria was rejected by Nasser, who, supported by an emergency resupply of Soviet arms, led the Arabs at the Khartoum Arab Summit in Sudan in August 1967 in a refusal to negotiate directly with Israel. The UN Security Council responded by passing Resolution 242 in November, demanding that Israel withdraw from “occupied territories” and that all parties in the dispute recognize the right of residents of each state to live within “secure and recognized borders.” The wording of this statement became crucial to peace negotiations for years to come. By not stating “all the occupied territories” in the English version—the only one accepted by Israel—the resolution left room for the Israelis to negotiate. The Palestinians, the residents of these territories, were mentioned only as refugees, it being presumed that Jordan would represent them.
Nearly two years of fruitless mediation ensued while Israel held the occupied territories with a minimum of force, relied on its air power to deter Arab attack, and—adhering to Dayan’s light-handed occupation policy—disturbed the Palestinian population under military rule as little as possible. The Israelis left the Temple Mount in Jerusalem, the local Arab institutions, and indeed the Jordanian legal code throughout the West Bank in the hands of the Palestinians, just as they left Egyptian regulations in place in Gaza.
The Israeli and Palestinian economies were to develop strong links over the next decades, as the underemployed Arab workforce in the occupied territories gravitated to Israeli industries that were chronically short of unskilled labor. Eventually more than 150,000 workers would make the daily commute to Israel, returning to the West Bank and Gaza at night. While the export of Israeli goods to the occupied territories became lucrative, it formed but a small part of the economic exchange between the two sides.
Meanwhile, the Israeli government moved to reclaim areas in the newly occupied territories that had been settled by Jews before 1948, including the Etzion Bloc, an Israeli community on the approach to Jerusalem that had been lost to Jordan after heavy fighting during Israel’s war of independence. After the Arabs rejected a quick peace, Yigal Allon, a leading Labour politician and a hero of the 1948 war, devised a plan to settle Jews in strategic areas of the West Bank, Gaza, Sinai, and the Golan Heights. Israel also enlarged the municipal boundaries of Jerusalem and developed new neighborhoods in order to establish a Jewish majority in the capital; and in the Old City, the government reconstructed the historic Jewish quarter. However, except for East Jerusalem, where the Jewish population increased dramatically in the years of Labour dominance, by 1977 only about 5,000 Israelis lived in these so-called strategic settlements. Other Israelis, guided by the prominent Rabbi Zvi Yehuda Kook, believed that settlement everywhere in the biblical land of Israel would hasten the messianic era. Israelis of this mind established the Gush Emunim (“Bloc of Believers”) organization in the West Bank city of Hebron in 1968.
The war of attrition
In early 1969 Egypt began what became known as the “war of attrition” against Israel. Using heavy artillery, new MiG aircraft, Soviet advisers, and an advanced Soviet-designed surface-to-air missile system, the Egyptians inflicted heavy losses on the Israelis. Golda Meir, who became Israel’s prime minister following Eshkol’s sudden death in February 1969, escalated the war by ordering massive air raids deep into Egypt. These raids were suspended, however, after the Soviet pilots began to fly combat patrols over parts of Egypt, and the battle shifted to the canal zone. Israel was also beset by guerrilla raids from Jordan, launched by Yasser Arafat’s Palestine Liberation Organization (PLO). These attacks were often on nonmilitary targets, and Israel soon stamped the PLO as a terrorist organization and refused to negotiate with it.
U.S. Pres. Richard Nixon feared an eventual Israeli confrontation with Moscow and sent Secretary of State William Rogers to intervene with a complex cease-fire proposal, which was accepted by Israel, Egypt, and Jordan in August 1970. This plan specified limits on the deployment of missiles and revived a year-old diplomatic initiative (the Rogers Plan) that insisted on an exchange of territory for peace on all fronts.
The Egyptians and Soviets soon violated the agreement by moving their missiles closer to the canal. In Jordan, Hussein’s acceptance of the cease-fire ignited savage fighting between the Jordanian army and several PLO militia groups. As the battles intensified, Syria sent tanks to aid the Palestinians, but coordinated Israeli, American, and Jordanian military moves defeated the Syrians and expelled the PLO, whose forces sought refuge in Lebanon.
Meir’s gamble had succeeded: Israel’s willingness to risk confrontation, even with Soviet pilots along the canal, had strengthened relations with the United States. Hussein’s recovery of control in Jordan demoralized Palestinian resistance while securing Israel’s eastern border. When Nasser died in September 1970, his successor, Anwar Sadat, did not renew the fighting, seeking instead a partial Israeli pullback from the Suez Canal. Israel eventually rejected this idea, but the crisis had passed.
The decline of Labour dominance
The Yom Kippur War
On October 6, 1973—the Jewish Day of Atonement, Yom Kippur—Egyptian and Syrian forces staged a surprise attack on Israeli forces situated on the Suez Canal and the Golan Heights. Israeli confidence in its early warning systems and air superiority was misplaced, and Egyptian missiles were soon taking a heavy toll of Israeli warplanes. The intensity of the Egyptian and Syrian assault, so unlike the situation in 1967, rapidly began to exhaust Israel’s reserve stocks of munitions.
With Israel threatened by catastrophe, Prime Minister Meir turned to the United States for aid, while the Israeli general staff hastily improvised a battle strategy. Washington’s reluctance to help Israel changed rapidly when the Soviet Union launched its own resupply effort to Egypt and Syria. President Nixon countered by establishing an emergency supply line to Israel, even though the Arab nations imposed a costly oil embargo, and various American allies refused to facilitate the arms shipments.
With reinforcements on the way, the IDF rapidly turned the tide. A daring Israeli helicopter assault disabled portions of the Egyptian air defenses, which allowed Israeli forces commanded by General Ariel Sharon to cross the Suez Canal and threaten to destroy the Egyptian Third Army. On the Golan, Israeli troops, at heavy cost, repulsed the Syrians and advanced to the edge of the Golan plateau on the road to Damascus. At this point, the United States, alarmed by Soviet threats of direct military intervention and on nuclear alert, secured a cease-fire in place.
Political and social repercussions of the war
Egyptian President Sadat persuaded U.S. Secretary of State Henry Kissinger that his country was ready to abandon both its Soviet and Syrian allies for a fresh start with the United States; only Washington, in Sadat’s view, could effectively influence Israel to return the Sinai without further bloodshed. Kissinger, supported by Nixon, successfully pressured Israel to end the war short of a complete Egyptian military defeat and then, through intensive travel between the various capitals—what soon was being called shuttle diplomacy—achieved disengagement agreements on both the Egyptian and Syrian fronts during 1974. This became known as the “step by step” process, which was intended to fulfill the intent of Security Council Resolution 242 that territory be exchanged for peace.
Golda Meir’s government resigned in April 1974, exhausted and discredited by the war. Still, the Labour Party won a narrow election victory in June by selecting Yitzhak Rabin, hero of the 1967 war and former Israeli ambassador to Washington, to lead its list. The first native-born Israeli to become prime minister, Rabin predicted a period of “seven lean years” until the West, including the United States, would end its heavy dependence on Arab oil. He argued that Israel therefore needed to trade space for time, to coordinate closely with Washington, and to encourage Egypt’s new pro-American policy.
Rabin reached a second disengagement agreement with Egypt in September 1975, but little progress was made with Syria. On what had been the “quiet” front—the West Bank and Gaza—the Labour government’s preferred strategy of negotiations with the more amenable King Hussein of Jordan (the so-called “Jordanian option”) was threatened in October 1974, when an Arab summit conference in Rabat, Morocco, declared Arafat’s PLO to be the sole representative of the Palestinians. A year later, Rabin obtained secret assurances from Kissinger that the United States would not recognize the PLO as an entity representing the Palestinians unless that organization first ceased terrorism and recognized Israel’s right to exist.
Meanwhile, the Gush Emunim movement on the West Bank gathered force after the Yom Kippur War and between 1974 and 1987 planted small communities near large Arab populations, greatly complicating Israeli policy and arousing international opposition. The secular Israeli government opposed such efforts but rarely used force to dislodge the settlers, who invoked Zionist rights to the homeland in their defense. Still, they numbered fewer than 4,000 when the opposition Likud government of Menachem Begin came to power in 1977.
Diplomatic impasse
The Yom Kippur War left the country in bad economic shape. An accelerating rate of inflation just before the conflict was suddenly combined with a stagnant economy; prices continued to rise even as demand and production fell. The international recession reduced demand for Israeli exports, and, for the first time in years, unemployment became a problem. On top of this, Israel became heavily indebted by arms purchases—partially offset by U.S. aid—and the country’s international status suffered. One by one, most of Israel’s carefully cultivated African friends broke relations under the threat of Arab oil sanctions, leaving the Jewish state alone with an equally isolated South Africa. Further complicating the situation for Israel, the UN General Assembly passed Resolution 3379 in 1975, which equated Zionism with racism, and the PLO gained increasing European and Asian support. Meanwhile, Rabin was losing political ground at home, harmed by infighting and corruption. Even the remarkable success of Israel’s July 1976 raid at the Entebbe, Uganda, airport—in which commandos rescued the Israeli passengers of an Air France plane hijacked by German and Palestinian terrorists—was of little help. The former general, new to politics, found it difficult to dominate a cabinet in which his chief rival, Shimon Peres, was defense minister, and few others owed him any political allegiance.
A further blow to Rabin fell when he visited Washington in March 1977 to meet with the new American president, Jimmy Carter, who advocated a "comprehensive approach" to Middle East peace instead of the Kissinger step-by-step plan. Carter sought an international conference to resolve all the major issues between Israel and the Arabs and advocated a “homeland” for the Palestinians. For Israelis, this notion (and its similarity to the wording of the Balfour Declaration) was a code word for a Palestinian state, and they hotly opposed it—not least because it also implied a leadership role for the PLO. Rabin, facing a major quarrel with the United States and beset by a personal scandal (his wife had maintained an illegal bank account in Washington from his days as ambassador), resigned in April, and Shimon Peres became Labour’s new party leader.
Israel under Likud
To general surprise, the Likud Party, led by Menachem Begin, won the May 1977 election, inaugurating the first non-Labour-led government in Israel’s history. Begin’s campaign benefited immensely from Sephardic resentment over the patronizing attitude of the Labour establishment and its treatment of non-European Jewish immigrants as second-class citizens. The Sephardim supported Likud in large numbers. In addition, a new “clean government” party drew votes from Labour, and its leader, Yigael Yadin, an eminent archaeologist and a hero of the 1948 war, joined the cabinet. Also included in Begin’s cabinet were Ezer Weizman, an air force commander in 1967 and architect of the Likud political strategy, and, to the shock of many Labourites, Moshe Dayan, who agreed to become foreign minister. Begin also attracted the National Religious Party to his coalition.
