Office of the Historian

Editorial Note

Secretary Bevin addressed the House of Commons concerning the Palestine problem on January 18. The Embassy took special cognizance of his conciliatory mood and his announcement that the British Government was prepared to release the Jews interned on Cyprus. It also noted that “even more important may be effect in Arab capitals of Bevin’s unequivocal public support direct Arab-PGI talks since such support goes somewhat beyond private British counsels to same effect through diplomatic channels. It seems likely that Bevin’s direct reference to ‘Government of Israel’ may be another step on road to British recognition PGI.” (telegram 223, January 18, 7 p. m., from London, 867N.01/1–1849)

The following day, Mr. Satterthwaite discussed with Uriel Heyd, First Secretary of the Israeli Mission in the United States, three matters concerning the British which were disturbing the Israelis. Mr. Satterthwaite suggested that “in my view Mr. Bevin’s statement in Parliament yesterday indicated that the British do not have hostile [Page 681] intentions toward the Israeli Government and that I hoped very much that they would before long have means of communicating with each other directly. The announcement of the release of the Jewish DP’s in Cyprus would, I hoped, be helpful in clearing the atmosphere before the elections.… I also mentioned the U.S. loan which the Export-Import Bank has approved today.” (memorandum of conversation by Mr. Satterthwaite, 501.BB Palestine/1–1949)

The Export-Import Bank, on January 19, announced authorization of a credit of $35 million to Israel to finance purchases in the United States of equipment, materials, and services in connection with agricultural projects and of a further credit of $65 million to finance projects in the fields of communications, transportation, manufacturing, housing, and public works. The latter group of credits was to be available until December 31, 1949. The text of the Bank’s press release on these credits is printed in Department of State Bulletin, February 6, 1949, page 173.