Foreign Relations of the United States, 1949, The Near East, South Asia, and Africa, Volume VI

501.BB Palestine/7–1349

Memorandum by the Assistant Secretary of State for Near Eastern and African Affairs (McGhee) to the Secretary of State ¹

secret

[Washington,] July 13, 1949.

Subject: United States Support of the Palestine Conciliation Commission and Establishment of an Economic Survey Mission.

Discussion:

It is considered essential in the national interest that the United States Government take the initiative in an effort to overcome the present impasse in the negotiations for a settlement of the Palestine question. This is necessary in order to assure formulation of an interim program under United Nations auspices for solution of the refugee problem which would create a favorable atmosphere for a final political settlement; to replace the temporary United Nations refugee relief program which is rapidly drawing to a close, and to take steps to overcome economic dislocations arising out of the hostilities which are seriously handicapping economic progress in the area.

Failure to take such action would result in increased suffering and possible widespread starvation among the refugees, attended by further deterioration of present conditions of unrest which would be exploited by communist and opportunist elements and would gravely endanger the security of the Near East. Moreover, unless some progress towards solution of the Palestine problem is achieved before the opening of the General Assembly in September, the entire question will be subjected to further acrimonious and unproductive debate.

The discussions at Lausanne under the auspices of the Palestine Conciliation Commission have reached an impasse largely over the disposition of the refugees. If substantial progress can be made towards solution of this problem, a decisive step will have been taken towards a general settlement. It would have been preferable if the initiative with respect to outside assistance could, in accordance with previous plans, have awaited satisfactory agreement by Israel and the Arab States as to disposition of the refugees, and full assumption of their responsibilities toward repatriation and resettlement respectively.

It is, however, believed that outside initiative can be taken now to survey the refugee and other economic problems remaining from the hostilities, without committing the United Nations, the United States or any other government to any specific line of action, or to any action at all unless specified conditions are met. Such a survey will, it is believed, facilitate agreement on disposition of the refugees by offering hope to the countries concerned for the assistance known to be required for any successful repatriation or resettlement program, and serve to divert their preoccupation from their present short-range objectives to longer-range economic solutions to broader problems.

Recommendations:

It is recommended that the following course of action be pursued by the United States Government:

1. Palestine Conciliation Commission.

a. The United States Government take immediate steps to strengthen the Conciliation Commission by the nomination of a strong representative, who must be present at the next meeting of the Commission in Lausanne, scheduled for July 18.

b. The United States representative urge the Commission to request the Secretary-General of the United Nations to strengthen the staff of the Commission by the appointment of a highly qualified American administrator as Chief of Staff, and supporting personnel, to carry out its coordinating and operating functions. (Whoever is appointed could, as a collateral duty responsible directly to the Secretary-General, be appointed to succeed Mr. Stanton Griffis who is resigning effective August 1 as head of the UNRPR.)

c. The Conciliation Commission, after it reconvenes, be urged by the United States representative to devote its attention chiefly to the questions of territorial settlement, the status of Jerusalem and the political aspects of the refugee question. Any final specific allocation of the refugees on a geographical basis would take into consideration the technical analyses of this question as submitted in the report of the Economic Survey Mission.

2. Economic Survey Mission.

a. The Conciliation Commission be urged by the United States representative to establish an Economic Survey Mission at the earliest Practicable moment, pursuant to its authority under paragraph 12 of the General Assembly resolution of December 11, 1948. The terms of reference of this Mission should be based upon the foregoing resolution with special reference to paragraph 11 thereof, which establishes the principles of repatriation and compensation for refugee property, and instructs the Conciliation Commission to facilitate the specific tasks of repatriation, resettlement, economic and social rehabilitation of the refugees, and payment of compensation. Within this context, the Economic Survey Mission should be charged with the objectives of examining the economic situation in countries affected by the recent hostilities and making recommendations which will enable the governments concerned to further such measures and development programs as are required to: (1) overcome economic dislocations created by the hostilities; (2) reintegrate the refugees from the hostilities into the economic life of the area on a self-sustaining basis within a minimum period of time; and (3): promote economic conditions conducive to the maintenance of peace and stability in the area. Recommendations by the Survey Mission relative to political problems with which the Commission is concerned should be at the request of the Commission and confined to the economic aspects thereof. The report of the Mission would serve as a basis for further action in the General Assembly and by appropriate international organizations and interested governments, including such action as the President may wish to recommend to the Congress with respect to United States participation in the program. It will be recalled in this connection that on May 26, 1949, the President approved the principle of United States participation in such a program under certain specified conditions which can still obtain.

b. The Conciliation Commission be urged by the United States representative to request the appointment of an outstanding American still to be designated as Chief of the Economic Survey Mission, and that the Chief appoint, in agreement with the Commission and the Secretary-General, a British and a French deputy and such expert personnel, selected on a multinational basis, as may be required to carry out the economic survey. Such personnel should be chosen on the basis of their special qualifications and in consultation with interested governments and appropriate international organizations.

c. The Department seek at the September meeting of the General Assembly an effective integration of all United Nations responsibilities remaining in connection with the Palestine hostilities, including refugee relief, rehabilitation and resettlement, and economic programs.

3. Diplomatic Representations.

The Department utilize the present recess in the Lausanne discussions to attempt through diplomatic representations to obtain a more realistic and constructive approach to outstanding problems on the part of both Israel and the Arab States, and, in the light of the continued refusal of Israel to agree to the principles set forth in the President’s recent representations to Israel, to take concrete steps to convince the Israeli Government of the grave importance which the United States attached to these representations. (This will be made the subject of separate recommendations.)

4. Public Statement by the President.

Simultaneous with the announcement by the Secretary-General of the appointment of the chief of the Economic Survey, Mission, the President issue a public statement, now in preparation, pledging United States support of the Palestine Conciliation Commission and the Economic Survey Mission. This statement would also include a definition of long-range United States policy towards the Near Eastern area as a whole, minimizing present issues between Israel and the Arab States.

[Here follow concurrences.]

1. Transmitted, through Messrs. Webb and Rusk, together with a summarizing memorandum of July 13, in Mr. McGhee’s memorandum of the same date to Secretary Acheson. The transmitting memorandum bears the Secretary’s “OK” in a marginal notation.