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

501.BB Palestine/7–1949

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

top secret

[Washington,] July 19, 1949.

Subject: Appointment with Paul A. Porter

Discussion:

On July 16 the President appointed Paul A. Porter to succeed Mark Ethridge as the United States representative on the Palestine Conciliation Commission.

Mr. Porter plans to leave Washington July 21 by plane for Lausanne. Mr. Porter has an appointment with you at 11:45 a. m. and with the President at 3:15 p. m. on July 20.

Since Mr. Porter’s appointment on July 16, officials of the Department have had an opportunity to brief Mr. Porter in detail on all aspects of the Palestine question including the instructions which Mr. Lovett, with the President’s approval, issued to Mr. Keenan and Mr. Ethridge² (Tab A).

It is anticipated that Mr. Porter will inquire to what extent and in what manner the United States Government will support him in his negotiations as the United States representative on the Palestine Conciliation Commission. It is accordingly suggested that you may wish, prior to your appointment with Mr. Porter, to discuss the present stage in developments regarding Palestine with the President.

It is recalled that the President directed the Department on May 29 to approach the Government of Israel in a friendly and firm manner with regard to its attitude on the subjects of Arab refugees and a territorial settlement in Palestine. It was stated at that time that “if the Government of Israel continues to reject the basic principles set forth by the resolution of the General Assembly of December 11, 1948, and the friendly advice offered by the United States Government for the sole purpose of facilitating a genuine peace in Palestine, the United States Government will regretfully be forced to the conclusion that a revision of its attitude toward Israel has become unavoidable.”

The Government of Israel has continued to refuse to heed the advice of the United States Government concerning the principle of territorial compensation for areas held by Israel outside the 1947 Palestine partition lines and the repatriation of a substantial number of Palestine refugees without reference to territorial acquisition. It is hoped, however, that during future talks at Lausanne, the representatives of Israel will adopt a more conciliatory attitude.

Meanwhile, in order to strengthen Mr. Porter’s authority and to increase the prospect of success at Lausanne at this critical stage, it is recommended that Mr. Porter be authorized to emphasize privately to the representatives of Israel at Lausanne two important points:

1. that the United States Government continues to stand firmly behind the principles enunciated in its note of May 29; and

2. that, pending the adoption of a more conciliatory attitude by Israel, the United States Government is finding it extremely difficult to give favorable consideration to the two following matters:

a) Further allocation of funds under the $100,000,000 loan requested by Israel in 1948. One of the principal reasons leading to favorable action by the ExImBank on this request was the belief that there were hopes of an early and final peace in Palestine and the consequent establishment of normal economic conditions in Israel which would facilitate the ultimate repayment of the loan. Israel’s failure thus far to heed the friendly advice of the United States may be said to have delayed peace and normal economic relations. Pending positive action by Israel to attain these objectives a suspension of further allocation of funds is accordingly warranted on banking grounds.

b) Ways and means by which the United States, through the United Nations, might be able to participate in an overall program for the repatriation and resettlement of Palestinian refugees. In order to plan a program which would be acceptable to the United States Congress, banking institutions and United Nations member states, some measure of agreement between the Arabs and the Jews and a definite prospect of peace in Palestine are essential; otherwise there would be no firm base on which the United States or other members of the United Nations would be able to formulate and participate in a workable program.

It is also recommended that Mr. Porter continue to emphasize to the representatives of the Arab states at Lausanne:

that the United States continues to support the principle of repatriation of those refugees who wish to return to Israel; but at the same time, hopes that the representatives of the Arab states will be able to make constructive suggestions with regard to the resettlement of those refugees who do not wish to return. Failure to do so would have the consequences indicated under 2(b) above.

Recommendation:

It is recommended that

1) Mr. Porter be authorized to approach the Arabs and the Israelis privately as indicated above;

2) The representative of the Department recommend to the ExlmBank that it temporarily postpone further allocations under the loan pending positive action by Israel at Lausanne.³

[Here follow concurrences by officers of the Office of Near Eastern and African Affairs and of the Office of United Nations Affairs.]

1. This memorandum was transmitted to the Secretary through Mr. Rusk who initialed it.
2. See Mr. Lovett’s letter of January 19 to Mr. Ethridge and footnote 1 thereto, p. 681.
3. In an attached undated memorandum, Mr. McGhee wrote: “Mr. Porter discussed this with the President yesterday and the President approved the course of action recommended in this memorandum.”