501.BB Palestine/5–1049: Telegram
The Consul at Geneva (Troutman) to the Secretary of State
410. Palun 145. From Ethridge. After PCC meetings with Arabs at Beirut and with Israel in Tel Aviv, commissioners had informal meetings with Israelis in Jerusalem re preliminary measures which Israel might take without prejudice its interests for purpose creating atmosphere favorable to success of Lausanne talks. During past week Israeli delegation has informed PCC re these measures as follows:
- (1)
- Israeli declaration re refugee problem: Recognizing refugee problem is one of main problems confronting conference. Israeli delegation prepared to tackle with sincerity and in spirit of optimism. We believe problem to be soluble and are prepared to do everything possible to help in arriving at solution. We shall cooperate with UN and with Arab States in implementing solution of problem on assumption that cooperation with Arab States will extend to other spheres as well.
- (2)
- Israeli declaration re proprietary rights of refugees and payment of compensation: Pact that absentee property has been placed under custodian (see paragraph 5) indicates Israel’s general attitude. Israel accepts principle of compensation for land abandoned and previously cultivated. Proprietary rights of refugees are recognized by Israel for purposes of such compensation but recognition does not bind government as far as concerns use or restitution of lands involved. Government reserves right to enact legislation for more rational use of absentee property and for purpose of guarding against speculation in such property without prejudice to payment of compensation or to such limited measures of repatriation as may be agreed upon.
- (3)
- Israeli declaration re rights of minorities: Israel fully respected rights of minorities within its border and would punish anyone infringing these rights.
- (4)
- Israeli assurance re blocked accounts: Israel has no intention of confiscating blocked Arab accounts in Israeli banks. Funds would be available to proper owners on conclusion of peace, subject to such general currency regulations as may be operative at time.
- (5)
- A suspension of application of absentee law: Law at present in force placing of refugee property in category of “enemy property” under custodian. Custodian acts as trustee for absentee owners whose [Page 993] property is administered in their interest and as far as possible preserved against deterioration after manner of similar custodianships in other countries.
- (6)
- Undertaking re deterioration of refugee property, see paragraph 5.
- (7)
- Employment of certain number refugee workers in Israel, e.g., port of Haifa, orange groves, et cetera: under consideration by Israeli delegation.
Re return of presently separated families (Palun 140)1 Eytan has informed PCC following its request Israel would be willing as preliminary measure to take census by inviting Arabs resident in Israel to furnish details concerning relatives who are now refugees and who would wish and be eligible to apply for repatriation under conditions stated (genuine relatives of close degree of consanguinity and commencement of repatriation not to begin until final Israeli DPS [sic] Arab settlement). [Ethridge.]