National Intelligence Estimate on Israel concluded that "Israel may have decided to undertake a nuclear weapons program. At a minimum, we believe it has decided to develop its nuclear facilities in such a way as to put it into a position to develop nuclear weapons promptly should it decide to do."

With proliferation becoming a “greater threat to US interests over the next five years,” intelligence analysts believed that the “disruptive aspect of the proliferation phenomenon will constitute the greater threat to the United States.” While the estimators saw “low potential” for terrorist acquisition of nuclear weapons, the likelihood of terrorist/extortionist hoaxes was on the upswing. Significant portions of the NIE are excised, especially the estimate of Israel’s nuclear arsenal and its impact in the Middle East. Nevertheless, much information remains on the countries of greatest concern: Iraq and Libya in the Near East, India and Pakistan in South Asia, Brazil and Argentina in Latin America, and the Republic of South Africa, as well as those of lesser concern: Iran, Egypt, Taiwan and the two Koreas.

This estimate updated an estimate (NIE-4-2-64) published in 1964 of the nuclear proliferation problem. That estimate, like this one, overestimated the likelihood of an Indian bomb, while somewhat underestimating Israel’s program. This assessment followed the same pattern—predicting India would produce a weapon within a “few years” and also putting Israel in the “might” category, although treating it as a “serious contender” nonetheless. Also following a short discussion of the “snowball effect” (later known as “proliferation cascades” or “chains”) suggesting that the United Arab Republic (Egypt-Syria) and Pakistan were likely to take the nuclear option should India or Israel go nuclear.

This US analysis of the likelihood of nuclear proliferation during the next decade was finished only days after the first Chinese nuclear test on 16 October. The report analyses the implications of this test, as well as programs in India, Israel, Sweden, West Germany, Italy, Japan, Canada, and others. The National Intelligence Estimate (NIE) argued that India was the only new state likely to develop nuclear weapons, concluding that “there will not be a widespread proliferation …over the next decade.”

This NIE comes to the general conclusions that “there will not be a widespread proliferation of nuclear weapons over the next 10 years” and discusses programs in various countries (Israel, China, Sweden, India, West Germany, Japan, etc.) This copy includes newly declassified references to the Israeli nuclear weapons program, including the conclusion that “the Israelis, unless deterred by outside pressure, will attempt to produce a nuclear weapon some time in the next several years.”