501.BB Balestine/2–2849: Telegram
The Secretary of State to the Consulate General at Jerusalem
145. Unpal 54. For Ethridge. Dept appreciates your thoughtful tel Palun 57.1 Specific comments re your numbered paras fol:
(1) Expect completion enabling legis within few days on $16,000,000 US relief contribution, with advance payment $8,000,000 available within few weeks. Balance payable fol Congressional action, probably [Page 806] not before April, on appropriation legis. In presenting case to Cong emphasis has been given to viewpoint expressed last two sentences your para 1, and general response Cong indicates concurrence this view.
As one means meeting relief rehabilitation needs after termination UN program, Dept actively considering measures to stimulate more effective drive for voluntary funds. Moreover prominent cits including Bayard Dodge2 [and James Terry] Duce, Aramco, contemplated early formation influential group for purpose launching educational and publicity campaign. At appropriate time Dept will also consider feasibility endeavoring persuade UNICEF extend program beyond present commitment.
(2) Dept is in full agreement and is making representations Israel.
(3) Dept considers this of equal importance with your para 2. Are you in position estimate for prelim planning purposes approx number refugees who would desire return Israel and under what conditions? Have you any suggestions re desirability and practical methods deter mining more precisely wishes of refugees this question?3 On assumption large number would be unwilling or unable return Israel, could Arab states be stimulated near future undertake planning on basis short term work projects utilizing refugee labor which would be of permanent benefit to countries concerned? Such projects would enable those refugees who wish remain in countries harboring them to engage in productive activity behalf Arab states. Moreover, such planning would constitute useful transition to realistic attitude by Arab states toward refugee problem as whole. Presumably experts could be made available by UN or other sources in connection such planning upon request Arab states.
(4) Your para 4 requires careful study. Direct compensation from Israel to Arab Govts without some means intermediary control and [Page 807] supervision would doubtless result in dissipation funds or failure apply them for constructive resettlement purposes. Another important aspect this question is intention, publicly announced by Israeli officials, to put forth counter-claims against Arab states for war damages. Dept believes any effort by Israel relate question compensation refugees to war indemnities should be firmly resisted. Since former refers to property assets of legitimate residents Pal with incontestable right ownership to properties in question, question has no relation any claims against Arab states. For this reason may be inadvisable make Arab states custodians compensation funds.
Dept recognizes that outside financial aid through loans or contributions will be required assist Arab states in providing for refugee populations during interim phase between termination UN relief and initiation large scale development projects in Arab states. We are examining projects limited in scope and financing which might be undertaken during interim phase. Refugee expert to be assigned to PCC could be extremely useful making recommendations this question. Dept also giving urgent consideration to elaboration Point 4 of Pres inaugural address with respect unilateral and multilateral technical assistance programs in NE, but on most optimistic basis flow of capital resulting from this source unlikely for many months.
(5) We hope tentative proposals will be formulated in few weeks re work projects which would fit in with longer range development schemes while affording work for refugees in areas where now located. Some projects might be financed from private sources, including oil cos which have manifested desire contribute to econ [and] social development.
US commitment re direct grants or loans impossible at present. Until projects are more clearly defined and until Arab states show initiative in requesting aid for specific developmental projects, it will be difficult consider methods financing. Possibility ExIm and IBRD loans dependent on submission sound projects by govts concerned.
At Dept’s suggestion UK is also considering question projects for assimilation refugees. Moreover we have informally raised with Brit Emb question UK intentions vis-à-vis Transjordan with respect increased financial aid in light anticipated expansion TJ’s population and area.
For your info only, Dept plans appointing George McGhee as US Coordinator on Palestine refugee matters. Announcement will follow shortly.
- Identified also as telegram 172, February 28, from Jerusalem, p. 778.↩
- President Emeritus of the American University at Beirut.↩
- Mr. Ethridge advised, on March 14, that he had
“not been able to devise any method by which desires of Arabs
could be made known. Have encouraged organization of camp
committee who might communicate wishes to Commission but our
thinking is that no referendum possible or valuable just now.
Those who have dealt with the refugees say most of them want to
be back in Palestine, whether in Israel or not. Inclined to
think that is true.” (telegram 221, identified also as Palun 81, 501.BB Palestine
3/1449)
In the same message, Mr. Ethridge indicated that “six weeks of effort to get the Israeli Government to commit itself on the refugee problem have resulted in not one single statement of position. That is true also of Jerusalem and all other problems with which we have to deal.” Later the same day, Mr. Ethridge transmitted the text of a telegram to him from Mr. Shertok, the date of which was not supplied by Mr. Ethridge. Mr. Shertok’s telegram concluded that “if pushed to the wall to say what I think at present stage all I would be able to say is that major solution is resettlement elsewhere and not in Israel” (telegram 223, identified also as Palun 84, 501.BB Palestine/3–1449).
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