867N.01/1–2949: Telegram
The Consul at Jerusalem (Burdett) to the Secretary of State
82. Dayan stated last night number new immigrants Jerusalem steadily increasing, now almost impossible find vacant room and Army requested vacate requisitioned houses and move into camps. First of Cyprus detainees, large number which scheduled settlement Jerusalem, expected thirtieth.
Admitted Arab quarters Jerusalem held by Jews completely settled by new immigrants and becoming thoroughly Jewish. Asserted PGI would have great difficulty forcing people move from homes now consider theirs and Army would probably be required use force with adverse political repercussions. Stated if return of certain sections to Arabs contemplated, agreement should be reached immediately.
[Page 712]According Dayan new immigrants now occupying Arab property throughout Israel and homes no longer exist to which Arab refugees could return. Stated PGI drawn up plans contemplating settlement Arab refugees in other Arab countries instead their return to Israel. Was vague as to details but said PGI estimated cost resettlement refugees at 150,000,000 pounds and prepared contribute considerable portion this amount. Claimed sources from which funds would come already determined. Maintained PGI would pay for Arab property taken over but not at fantastic prices prevailing during mandate.
To avoid possible embarrassment to Dayan, please protect source.
Sent Department 82, repeated Beirut 10, Amman 5.