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Egypt and Israel
From Cold Peace to Warm Embrace

By Kareem M. Kamel
Researcher – International Relations

15/12/2004

“I did it especially for you.”1Hosni Mubarak to Ariel Sharon, commenting on the release of convicted Israeli spy Azzam Azzam

“This deal is the sign of the demeaning and dishonoring of Egypt and Arabs by the Israelis.”2Diaa Eddin Daud, Nasserist Party Leader

Convicted Israeli spy Azzam, meeting with Israeli Premier Sharon

Egypt’s surprise exchange of Azzam Azzam, a convicted Israeli spy, for six Egyptian students arrested by Israel in August shed light on the steadily improving relations between Egypt and Israel. The prisoner exchange was not announced in advance, but Israeli officials said that the details were worked out during a visit to Israel by the Egyptian foreign minister, Ahmed Aboul Gheit, and intelligence chief, Omar Suleiman.3

While the parents of the freed Egyptians expressed their joy at the release of their sons, they regarded the deal as an unfair one for Egypt.4 Some of the Egyptian opposition saw the deal as “part and parcel of an ongoing series of Egyptian concessions to Israel and the US,” arguing that there was no moral equivalence between Azzam, a convicted Israeli spy, and the Egyptian students who were armed only with knives and an air gun.5 Exacerbating this sentiment is the fact that, almost nine months ago, Hizbullah got a much better deal, when a German-brokered exchange lead to the release of 400 Palestinians, 30 Lebanese detainees (including two high profile Hizbullah leaders), and the bodies of 59 Lebanese, in return for the bodies of three Israeli soldiers and an Israeli businessman captured by Hizbullah.

The recent prisoner exchange was not an isolated incident. It was the final step in a series of Egyptian moves aimed at improving relations with both Israel and its main patron, Washington. A few days before the exchange, President Mubarak made an unprecedented comment praising Sharon’s ability to bring peace, and suggesting that the Israeli Prime Minister—loathed across the Arab world—had much to offer the Palestinians. “If the Palestinians do not manage to achieve progress in the time of the current prime minister,” he said, “it will be difficult to make any progress, because Sharon has the ability to move along the peace process and find a solution if he wants to.”6

The release of Azzam is expected to be followed by the return of Egypt’s ambassador to Tel Aviv, from where he had been recalled in November 2000, in protest of Israel’s bloody crackdown of the Palestinian uprising. The Egyptian government has also agreed to the establishment of a three-way Egyptian-Israeli-US Qualifying Industrial Zone (QIZ) that would give goods made in Egypt preferred status in the US if there was some Israeli contribution to the production process. Official Egyptian criticism of Marwan Barghouti’s decision to run for Palestinian presidential elections is a further sign of improvement in Egyptian-Israeli relations. Some analysts suggest that Barghouti’s candidacy is inconvenient for political actors who do not see the upcoming Palestinian elections as an exercise in democracy, but simply seek to use the elections to bestow legitimacy on Mahmoud Abbas—the man both Washington and Israel favor as a negotiating partner. Hence, by favoring Mahmoud Abbas and distancing Marwan Barghouti, the Egyptian leadership has further entrenched itself within the American-Israeli camp.


The Egyptian government wants an end to the Intifada because it has inflamed popular passions in Egypt and threatens regime stability.


Recently, Israeli newspaper, Ha’aretz, suggested that, during his recent visit to several Middle Eastern capitals, Mubarak attempted to persuade the ruler of Kuwait, Prince Jabber Ahmed al-Sabah, to open negotiations with Israel for diplomatic ties.7 It also indicated that the Egyptian president tried to pressure Syria into taking bolder steps that would convince Israel of Damascus’ seriousness about renewing Syrian-Israeli peace negotiations.

Currying Favor with Washington and Tel Aviv

It would appear that a significant restructuring of Egyptian diplomacy, vis-à-vis its relationship with Washington and Tel Aviv, has been taking place. The importance of this development cannot be understated; Egypt’s strategic decisions greatly influence regional policy, given its place as the largest and most populous Arab state and the political center of the Arab world. Egyptian diplomacy has historically often set the tone for future regional developments. As such, it is important to note the pattern of increasingly uninhibited Egyptian-Israeli and Egyptian-American rapprochement, in which Egypt’s traditional reservations have been withdrawn on almost all issues.

In the immediate aftermath of the American invasion of Iraq, Egypt refused to deal with any American-appointed government, stressing the need for the immediate withdrawal of US troops. But despite the death of almost 100,000 Iraqi civilians as a result of the US invasion and the recent destruction of the city of Fallujah by US forces, the recent summit on Iraq held in the Egyptian resort of Sharm el Sheikh granted the US-appointed Allawi government and its security forces legitimacy, rebuffed France’s attempt to secure a timetable for the withdrawal of US troops, and condemned what it called “all acts of terrorism in Iraq.”8 Additionally, Egypt, under whose auspices the summit was held, went along with the American demand to only host members of the Iraqi interim government and not the Iraqi opposition.9

Official Egyptian-Israeli ties had been warming several months before the release of Azzam. In late May Mubarak and Sharon decided to establish political, security and economic committees, mandated to improve all aspects of the two countries’ bilateral relationship. Both countries have also recently concluded a $2.5 billion agreement, whereby Egypt undertook to supply Israel with natural gas for 15 years. President Mubarak has also affirmed his willingness to assist in maintaining the peace in Gaza after Israel’s planned withdrawal. He also agreed to increase Egypt’s forces on the border between Egypt and the Gaza Strip, crackdown on weapons smuggling from Sinai into Gaza, and send Egyptian experts to train the Palestinian Authority’s security forces. The Egyptian authorities fear that Hamas’s growing power in the Gaza Strip could cause a spillover of Islamic fundamentalist influence.

Regime Survival

Mubarak’s policies are generating anger, evidenced in popular protests

While Egypt has always had working relations with Israel, it had always maintained a relative degree of independence, seeking to shield itself from domestic criticism by at least trying to seem evenhanded and balanced in its dealings with the Arab-Israeli conflict. The Egyptian government has always argued that any improvement in Egyptian-Israeli relations could only occur in tandem with more Israeli efforts towards peacemaking. For instance, Egypt always insisted that in order for the Egyptian ambassador to return to Israel, the latter should withdraw to its September 28, 2000 positions and end its siege of the Palestinian presidential headquarters in Ramallah. But there are suggestions that Cairo has withdrawn its conditions and that the Egyptian ambassador will be sent back to Israel. One would have anticipated that with the ongoing carnage in Iraq, constant US threats against Iran and Syria, and Israel’s recent killing of three Egyptian border police, Egypt would have taken a tougher stance. But the exact opposite happened; the Egyptian government has shown exceptional willingness to “reward” Israel and the United States, hosting a US-inspired conference on Iraq, encouraging Arab steps towards normalizing relations with Israel without any tangible reciprocal steps, and accepting a prisoner swap that many in Egypt regarded as a sell-out. The question is: What could have prompted the Egyptian government to seek closer relations with Israel at such a critical juncture for the region, when Israel continues to demonstrate intransigence and hostility?

Decision-making in the Arab world is often marred by personalized politics, ad-hoc policymaking, and the lack of institutionalized decision-making. All this makes it increasingly difficult to find clear behavioral patterns or explain sudden shifts in stances vis-à-vis major policy issues. In fact, decision-making in the Arab world involves an authoritative decision-maker who can act alone, with little or no consultation with other people or institutions except for a small group of subordinate advisors who are entirely dependent on the decision-maker for the continuance of their present position.10 Moreover, these advisors have no independent power base and no role that permits them access to a regular source of information on foreign affairs other than through the decision-maker they serve.11 Given that most Arab regimes do not operate based upon a clearly outlined strategic doctrine of national interest, the most likely reason for Mubarak’s behavior is his personal quest for political survival. In fact, most Arab leaders have successfully evaded demands for change and democratization by demonstrating to their patrons in Washington how useful they can be in the “war on terrorism,” and by showing their ability to maintain stability and calm in the Middle East.


The most likely reason for Mubarak’s behavior is his personal quest for political survival.


Moreover, many Arab leaders have benefited from their accumulated experience of political survival and are aware that the re-election of George W. Bush would most likely mean that moves aimed at improving relations with Israel would be looked upon favorably by the neoconservative hawks controlling the upper echelons of decision-making in Washington for the next four years. This would explain why Egyptian moves aimed at gaining favor in Washington and Tel Aviv were accelerated in the immediate aftermath of the reelection of George W. Bush. The release of Azzam Azzam was the key to winning further Israeli support and securing a position as a major player in the “peace process.”

The Egyptian government is fully aware that its role in any US-inspired “peace process” is primarily to be as helpful as possible, without taking any unilateral initiatives that depart in any way from the narrow parameters set by Washington and Tel Aviv.12 In other words, the limits of the Egyptian role in the Middle East are defined by the United States and Israel, and not by the Egyptian leadership.

Egypt is also interested in playing a more active role in re-arranging Palestinian domestic affairs to its favor, now that Arafat is dead and whatever reservations he had are gone. The Egyptian endorsement of Mahmoud Abbas as the new leader of the Palestinians came after the latter gave certain hints that he would seek to abandon the Intifada, restructure Palestinian security forces, and resume negotiations with Israel. The Egyptian government wishes to see an end to the Intifada because it has inflamed popular passions in Egypt for more than four years and has been a threat to regime stability and a security concern. The recent attacks carried out in Sinai against Israeli tourists are a case in point.

Pre-emptive Concessions

The last few months have witnessed a noticeable thaw in the “cold peace” between Egypt and Israel. Stronger Egyptian-Israeli ties reach beyond the recent prisoner exchange and include an upgrading in all aspects of their bilateral relationship. This has prompted many Israeli commentators to note that “the security cooperation, the political coordination and the close relations formed between heads of the different security apparatuses, have turned the state of affairs between the countries to the best it has been since the initial “honeymoon,” immediately after the signing of the 1979 peace accord.”13

Unfortunately, by assuming that gestures of goodwill and multiple concessions will somehow persuade Israel to withdraw from occupied territories, the Egyptian leadership has once again shown its tendency to miscalculate. If Arab relations with Israel are normalized and the Intifada is brought to an end without Israel taking any significant reciprocal steps, what future bargaining chips would the Arabs be left with?

In addition, one must note that US support and Israel’s good graces have not turned Egypt into a haven for foreign investment or produced an economic miracle. Unemployment continues to plague Egyptian youth, and any economic benefits have not noticeable trickled down to Egypt’s lower and middle classes. In fact, one analyst noted that US aid to Egypt is based on a tacit bargain in which “American officials help Egyptian officials to get rich, and Egyptian officials help their American counterparts to validate their reputations.”14

By accommodating Israeli and American demands over the past two decades, Egypt has turned itself from a historically largely-independent player in regional affairs, a champion of Arab nationalist causes, and an influential strategic heavyweight, to a simple mediator with a role narrowly structured by Washington and defined by Tel Aviv. From the Oslo Accords to the Nuclear Non-Proliferation Treaty (NPT) to the multiple peace and security summits in Aqaba and Sharm el Sheikh, Arab leaders have demonstrated an astonishing ability to make new concessions on every occasion. But that suggests that one day there will be no more concessions – when there is nothing left to concede.

Kareem M. Kamel is an Egyptian analyst based in Cairo, Egypt. He has an MA in International Relations and is specialized in security studies, decision- making, nuclear politics, Middle East politics and the politics of Islam. He is currently a teaching assistant to the Political Science Department at the American University in Cairo.


1- Ben Kaspit, “Significant Thaw in Israeli-Egyptian Relations,” Maariv International December 7th, 2004

2- “Release of Israeli Spy Sparks Outcry,” Middle East Times December 7th, 2004

3- Greg Myre, “Egypt and Israeli Free Prisoners, in a Hint of Mutual Diplomacy,”  International Herald Tribune December 6th, 2004

4- “Israel Predicts an Improvement in its Relations with Egypt,” Al-Jazeera.net (Arabic)

5- Ibid.

6- Neil MacFarquhar, “Mubarak Calls Sharon Best Hope of Palestinians,”  New York Times  December 3rd, 2004

7- Zvi Bar’el, et al. “Egypt Pushes Syria, Kuwait, to Take Bold Steps in Peace Effort,”  December 10th, 2004

[8] Patrick Goodenough, “Iraq Summit Rejects French Demand For Troop Withdrawal Timetable,” CNS NEWS November 23rd, 2004

9- Ibid.

10- Charles F. Hermann, “Decision Structure and Process Influences on Foreign Policy,” in Maurice East, Stephen Salmore, and Charles Hermann, eds. Why Nations Act : Theoretical Perspectives for Foreign Policy Studies (Beverly Hills : Sage, 1978) : 80

11- Ibid.

12- Roger Owen, “Egypt” in Robert Chase, Emily Hill, and Paul Kennedy.  Pivotal States: A New Framework for US Policy in the Developing World. (New York : W.W. Norton and Company, 1999)

13- Ben Kaspit, “Significant Thaw in Israeli-Egyptian Relations,”  Maariv International December 7th, 2004

14- Yuval Levin, “American Aid to the Middle East: A Tragedy of Good Intentions.” 

The articles posted on this page reflect solely the opinions of the authors.

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