501.BB Palestine (E)/8–2649

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

There is a potential impact upon the Congress which may result from the proposed shift from a political to an economic emphasis in the handling of the Palestine situation (Department’s circular telegram of August 16). My principal concern is related to the difficulty which we may encounter when we go to Congress next session to request further funds either for refugee relief or for economic development and resettlement in the Near East.

You will recall that when we talked last May with Senators Connally and Vandenberg they both emphasized that in working out any arrangements involving the grant of additional funds it would be essential that there be evidence that the Israeli Government is doing its full part and making appropriate contribution to the solution of the problem. While I realize that the Department has tried its best to get the Israelis and the Arabs to make some contribution to the settlement of the refugee problem, the fact is, I believe, that they have done practically nothing. Congress will require evidence that the states in the Near East are doing something for themselves before any additional United States help will be given.

My concern is that the Economic Survey Commission [Mission] might submit recommendations to the General Assembly (through the PCC) which will bypass the political problem, ignore the fact that the Arabs and the Israelis are doing nothing to help solve the problem themselves, and in effect commit the United States, along with a small group of other states, to make further substantial financial contributions either of an outright relief type or related to economic development of the area.

I believe we must tread very carefully on the matter of committing Congress. You will recall that the Senate Report on the Refugee Bill stated:

“The Committee believes, however, that as a matter of general policy, our delegations to the General Assembly should exercise extreme care not to take any action which commits the Congress to expenditures for such voluntary programs to which all members do not contribute under the regular United Nations budget.”