Foreign Relations of the United States, 1955–1957, Arab-Israeli Dispute, 1957, Volume XVII

378. Memorandum From the Deputy Assistant Secretary of State for International Organization Affairs (Hanes) to the Secretary of State¹

Washington, October 2, 1957.

SUBJECT

• Implementation of Section 407 of the Mutual Security Act—Palestine Refugees in the Near East

Discussion:

1. The question of continued support for the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) will come up before the General Assembly once again at the twelfth session. On October 4, an ad hoc committee of the General Assembly will hold a “pledging session” for the purpose of soliciting financial contributions to UNRWA. The position paper on this question provides that the United States should make pledges of up to $17,500,000 to the Agency’s relief fund and up to $4,000,000 to its rehabilitation fund, provided the US contributions do not exceed 70 percent of the total contribution to these funds (Tab A).²

2. Section 407 (Palestine Refugees in the Near East) of the Mutual Security Act of 1954, as further amended by the Mutual Security Act of 1957,³ provides in pertinent part:

“In determining whether or not to continue furnishing assistance for Palestine refugees in the Near East, the President shall take into account whether Israel and the Arab host Governments are taking steps toward the resettlement and repatriation of such refugees.”

3. By Executive Order 10575 (Tab C),⁴ the President delegated to you the authority to formulate US policy with respect to the assistance program of UNRWA. It is therefore considered appropriate that you determine whether to continue assistance to UNRWA, taking into account, among other factors, the position of Israel and the Arab host Governments toward the resettlement and repatriation of refugees (Tab B).⁵

4. During the past year, Israel and the Arab host Governments (Jordan, Egypt, Lebanon and Syria) have continued to show no inclination to assist in a permanent solution of the Palestine refugee problem. Israel continues to hold that the solution of the refugee problem rests in the resettlement of the refugees in Arab countries, particularly Iraq. It does not accept any obligation for repatriation. It has in the past indicated a willingness to discuss compensation. The Arab host Governments have continued their opposition to any resettlement or rehabilitation schemes which, barring large-scale repatriation, offer the only practical solution to the refugee problem.

5. In the face of this dilemma, UNRWA must continue relief for the Arab refugees and maintain such limited rehabilitation programs as educational and vocational training facilities. The collapse of UNRWA operations could create grave internal problems in Jordan and Lebanon and would certainly be the cause of serious difficulties in the Gaza area which could lead to fresh sources of conflict between the Arab states and Israel. Failure to make the contribution referred to in paragraph 1 above would effect the immediate collapse of UNRWA’s operations, thereby giving rise to the problems referred to and causing grave difficulties between the United States and the affected Arab Governments.

6. The mandate under which UNRWA operates expires on June 30, 1960. Concrete plans must, therefore, be formulated promptly for the solution of the refugee problem or the handling of the Arab refugees’ welfare after that time. A working group under Ambassador Villard is presently considering plans for the permanent solution of the refugee problem. The cessation of UNRWA activities at the present time would not only have serious political repercussions but would create an atmosphere not conducive to the success of such plans.

7. In order to stimulate planning by UNRWA and the Arab host Governments toward a permanent solution of the problem, and in an effort to meet the above concern of the Congress, we propose that the following steps be taken at the forthcoming pledging session scheduled for October 4: The US representative would indicate, with regard to the US pledge of $17,800,000 for the Agency’s relief fund, that $300,000 of that pledge will be held by the United States as earmarked for such planning and implementation of plans for effecting the transfer of the administration of the refugee relief to the host Governments as the Director and the Arab host Governments may be able to arrange during fiscal year 1958. The remaining $17,500,000 (which is identical with the amount the United States pledged for relief last year) would be made available on the customary basis to UNRWA, i.e., 50 percent as soon as possible before the end of calendar year 1957, and the remaining 50 percent at such times during the period from January 1 to June 30, 1958 when contributions from other countries permit US contributions under the 70 percent limitation rule. We would point to this limitation at the time we make the pledge.

8. In view of the above considerations, it is concluded that it is in the best interests of the United States to continue financial assistance to UNRWA during fiscal year 1958, despite the fact that Israel and the Arab host Governments have not as yet taken any decisive steps toward the resettlement and repatriation of the refugees.

Recommendation:

That you determine that it is in the best interests of the United States to continue financial assistance to UNRWA during the fiscal year 1958 in spite of the fact that Israel and the Arab host Governments have not as yet taken any decisive steps toward the resettlement and repatriation of refugees.⁶

1. Source: Department of State, Central Files, 320.511/10–257. Confidential. Drafted by Shaw. Concurred in by Rountree (NEA), Barnes (U/MSA), Fobes (OIA), FitzGerald (ICA), and Villard (U) in substance.
2. Not printed. The position paper, prepared within the Department of State for use of the U.S. Delegation to the 12th Regular Session of the U.N. General Assembly, is entitled “Voluntary Contributions to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA)”. (SD/A/C.l/472a)
3. 71 Stat. 361.
4. Not printed. The extract is from Section 103 (C) of Executive Order No. 10575. See 19 Federal Register 7249–7253.
5. Not printed. The attachment is a memorandum entitled “Implementation of Section 407—Palestine Refugees in the Near East”, which discusses the problems arising from Section 407.
6. Dulles initialed his approval on the source text.