1. Political Transformation Fear and Temptation In the wake of victory

2. Defining Israel The “Land of Israel” –Biblical claims, united people, ideological goals The “state of Israel” –Pragmatic historical claims, diverse people, “economic” goals

4. Labor roots of settlement 1967-73 : Nahal settlements in Sinai and West Bank 1972: Knesset reaffirms “historic right” of the Jewish people over the Land of Israel Moshe Dayan insists on private landownership in the W Bank A generation of leaders committed to settlement in the 1930s

5. Shifting Israeli politics 1973 war undermined the claims the Labour could keep Israel safe The Labour party was still in the grip of its early, Askenazi leaders The Israeli electorate now included mizrahim excluded from Labour The Likud, under Menahem Begin, sought to be a voice for mizrahim

6. Menahem Begin in Soviet secret police archives

7. Begin and Sadat in Jerusalem

8. Economic crisis Massive growth in defense costs Inflation rates of 30-40% in early 1970s Budget deficit of $3 billion Revelations that Yitzhak Rabin had kept a “secret” bank account in dollars in the US And one political issue: Rabin-Peres rivalry

9. Victory for the Likud Rabin forced 1977 elections hoping to rid himself of religious partners Massive Mizrahi shift to right-wing parties With 43 seats to Labour 32, Likud and Begin emerged as the new Knesset core Joined by NRP, Agudath Israel and independent And by Movement for Democratic Change which gave up demand for constituencies

10. Parliamentary power Begin was in a position to exclude his old nemesis, the Labour party. In the Israeli Knesset there is no necessary advantage to a Grand Coalition The search for a majority gives significant power to small parties A general consensus exists not to rely on Arab votes or Arab parties

11. Defeat for Labour Losing seats to Likud Israeli Arabs turn to Rakah (Communists) Intense conflict within Labour –Sharon and Dayan defect –Peres and Rabin at odds

12. Rabin in Palmach

14. Dayan as Foreign Minister Weighing Sharm al-Shaykh vs. peace Supported withdrawal from Suez after 1967 Proposed to Begin Israeli withdrawal from 2/3 of Sinai for Egyptian non-belligerence Begin did not see Sinai as part of the Land of Israel

15. Romanian and Moroccan connections Romania’s dictator, Ceausescu arranged for Begin to meet Sayyid Marei in August 1977 Israeli draft treaty with Egypt sent to Egypt by US Morocco arranges for Dayan to meet Egyptian Deputy PM in September 1977

16. November 9 1977 Sadat offers to go to Jerusalem Speaking to the National Assembly Yasser Arafat is in the audience

17. November 19, 1977 Sadat arrives in Jerusalem Addresses the Knesset Prays at the Aqsa Mosque Reassures Israelis Returns to tumultuous reception in Cairo

18. Basic outlines of the deal Return of all of Sinai to Egypt –Includes Yamit –Restoration of full sovereignty (i.e. troops can be stationed there) Egyptian state of non-belligerency or peace –Egypt ends privileged strategic connection to Arab states –Tacitly agrees to allow Israel to pursue its own policies in remains of Mandatory Palestine

19. Not conservatives Begin fails –No privatization, few tax cuts, no wage freeze Begin succeeds –Guarantees for housing, extends tuition-free education to high school, “Project Renewal” Begin continues