501.BB Palestine/3–349
Memorandum by the Assistant Secretary of State for United Nations Affairs (Rusk) to the Under Secretary of State (Webb)
Subject: Assignment of Mr. George McGhee1 as U.S. Coordinator on U.S. Palestine Refugee Matters.
- 1.
- It is becoming increasingly clear that a final settlement of the Palestine question will turn upon our ability to obtain some solution to the complicated question of Palestine refugees. There are now some 700,000 such refugees in Arab held Palestine and in neighboring Arab states. Only an insignificant fraction of these can be absorbed in the communities where they are now located. It is roughly estimated that not more than a fourth might be returned to their former homes in Israel in connection with a final peace settlement. The present United Nations program is a straight relief program which will terminate in September and it is not expected that the United Nations will undertake any long-range responsibility for these refugees.
The bulk of these refugees must be resettled in Arab–Palestine and in the neighboring Arab states. To do this, specific projects for their settlement must be worked out and supported by means of Ex-Im Bank loans, International Bank loans, private capital, or other resources not now committed. Such projects would include irrigation and drainage projects which will make new lands available for settlement. Construction work on such projects would itself absorb a considerable number of refugee laborers.
The national interest of the United States is so heavily involved in the solution of this problem that we should detail immediately an American of high rank, diplomatic ability and sound judgment as a Special Assistant to the Secretary of State with personal rank of Minister, to mobilize the public and private resources of the United States which might be brought to bear on this problem.
It is strongly recommended that Mr. George McGhee be named to this post. Mr. McGhee’s experience and performance with regard to Greek assistance, his knowledge of the Department and of other U.S. agencies concerned, and his broad political and business experience would make him admirably suited for this assignment. I hope that you will agree and will put this assignment to Mr. McGhee in the strongest terms.2