501.BB Palestine/12–2949: Telegram

The Chargé in the United Kingdom (Holmes) to the Secretary of State

confidential

5149. At Wright’s request, Evans, head NE Secretariat Foreign Office, today gave us following information re UK contribution to NERWA. Figures mentioned have been approved by Chancellor Exchequer.

1.
UK prepared contribute 2,250,000 pounds, of which 1,000,000 pounds would be comprised of UK loan to Jordan.
2.
Remaining 1,250,000 pounds would be subject following conditions: (a) up to maximum of 1,250,000 pounds, UK would match one-quarter of total contributions of other governments than US. (In other words, governments other than US would have contribute 5,000,000 pounds for UK to make maximum contribution.) (b) 750,000 pounds would be earmarked for expenditure on projects which will provide for resettlement.
3.
Foreign Office hopes condition (a) will spur other governments to make maximum contributions.
4.
Foreign Office feels condition (b) will strengthen hand of NERWA so that funds will not be wasted on hopeless areas such as Gaza.
5.
Evans stated foregoing, when figured on percentage basis, compares favorably with UK contribution to UNRPR.
6.
Bevin will take opportunity at Colombo conference to urge other dominion governments to make maximum possible contributions to NERWA.

We recalled that while in Wright conversations Washington, it had been recognized that either government authorized discuss specific figures, nevertheless proportions of 50 percent US, 25 percent UK and 15 percent France had been mentioned. Evans confirmed this but said he would also recall that at same time Wright had mentioned Chancellor had authorized only 500,000 pounds as UK contribution. Present figure represents increase of 750,000 over that figure and while UK wishes it could be more, he agreed that was not possible.

Holmes