U.S. policy in the Middle East should seek the following objectives as necessary conditions for order and stability in the Middle East: First. negotiations between the Israelis and the Arab nations. Second. recognition by all nations of the international character of the waters of the Gulf of Aqaba and the Strait of Tiran. and of the right of all nations to the use of the Suez Canal. Third. greater efforts to solve the Palestine refugee problem. Fourth. a policy of restraint on the part of all nations contributing to the arms buildup in the region. and Fifth. border adjustments and controls necessary to assure to Israel the security to which that nation has the right and also to give assurance and stability to those Arab nations that have shown an interest in order in the Middle East. Once the parties primarily concerned have reached a mutually satisfactory settlement. the United States. with other nations and.