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

501.BB Palestine(E)/9–249

Memorandum of Conversation, by Mr. Harlan B. Clark of the Division of Near Eastern Affairs

confidential

[Washington,] September 2, 1949.

Participants:	Mr. McGhee, NEA
	Mr. Hare, NEA
	Mr. Gardiner, NEA
	Mr. Clapp, Economic Survey Mission
	Mr. Clark, NE
	Dr. [Charles] Malik, Lebanese Minister
	Dr. M. B. Chiati, Egyptian Chargé d’Affaires
	Dr. Yusuf Haikal, Jordanian Minister
	Abdullah Ibrahim Bakr, Iraqi Chargé d’Affaires
	Ahmed Abdul Jabbar, First Secretary, Saudi Arabian Embassy

Problem:

The Arab diplomatic representatives made inquiry as to the objectives of the Economic Survey Mission and the scope of its activities.

Action Taken:

Mr. McGhee and Mr. Clapp outlined the projected work of the Mission, emphasizing its area-wide character and the necessity for cooperation by the Arab States with the Mission if its objectives are to be achieved.

Action Required:

It was agreed that copies of the text of the terms of reference of the ESM would be made available to the Arab diplomatic representatives.¹

Action Assigned to: NE

Discussion:

The officers in charge of the Arab diplomatic missions in Washington called at their request to meet Mr. Gordon Clapp, Chief of Mission of the United Nations Economic Survey Mission. Mr. McGhee introduced the Arab diplomatic representatives to Mr. Clapp, and Dr. Malik opened the discussion by stating that those present would be interested in having more information about the objectives of the Economic Survey Mission and its terms of reference. Mr. McGhee said that copies of the United Nations press release in this regard would be made available to the Arab missions but that in general the terms of reference encompassed all aspects of an economic approach to the problems which confronted the Palestine Conciliation Commission. He said that in frankness it had to be admitted that the work of the Palestine Conciliation Commission on a political basis had thus far not been productive of solutions to outstanding problems. Since these problems were closely bound up with the economic situation in the area it was thought that progress could best be achieved at the present stage by determining the needs and potentialities of the area, as well as how through economic measures these potentialities could be developed and thereby contribute to a solution of the problem of the refugees and other issues with which the Palestine Conciliation Commission is faced.

Mr. Clapp said that, being an engineer and not concerned with politics, he would confine his activities to technical matters. Moreover, he proposed to study the area as a unit and not on a country-by-country or any other basis which would not permit full realization of the potentialities of the economic resources available. He referred, for example, to water resources which cut across country boundaries or were shared by adjoining states, such as were found in the TVA system. He and his staff of TVA engineers had found that unless they could plan river control schemes on an area basis, regardless of state boundaries, they could not provide for full utilization of these resources. It had also been found that the engineers could not make development plans work unless the people of the area cooperated fully in carrying out recommendations as to soil management and conservation, as well as all other phases of the TVA program. The same principle would no doubt apply in the Near East where similar cooperation by the respective governments and peoples was the keynote to successful realization of any programs which the Survey Mission might recommend, and artificial barriers which might be found to exist should not stand in the way of such cooperation.

Dr. Malik inquired as to when Mr. Clapp would leave and he replied that it would be within a matter of days. Mr. McGhee said that Mr. Clapp would be accompanied by Deputies nominated by the United Kingdom, France and Turkey and that Secretary General Lie would shortly be announcing their appointment. In selecting the Deputies and other members of the mission’s staff, care had been taken to obtain as wide representation as possible of interested United Nations agencies such as the FAO and WHO. Dr. Malik inquired as to whether Mr. Clapp had selected a headquarters for his Mission and Mr. McGhee replied that, while this was a matter for the United Nations to decide, some consideration had been given to Beirut as a possible headquarters. He inquired whether Dr. Malik felt that his Government would welcome the selection of Beirut as this purpose, bearing in mind that Lebanon would offer certain advantages including the presence there of buildings which had been constructed for the UNESCO meeting. Dr. Malik said that he was sure that his government would welcome the visit of the Mission but that he would like to have as much advance notice as possible in order that the necessary arrangements could be made.

Shaikh Jabbar inquired whether the Survey Mission planned to visit all the Arab countries and Mr. Clapp replied he hoped he would be able to do so but that he would have to concentrate most of his time in those countries most directly concerned. Shaikh Jabbar said that he had that in mind since he understood that it was those countries actually bordering on Israel which had been most directly concerned. Mr. McGhee recalled that the King of Saudi Arabia had already undertaken to accept certain categories of refugees and had also made contributions of petroleum products for the refugee program. It might be most useful, therefore, for Mr. Clapp to investigate the possibilities as to whether Saudi Arabia might not also be able to receive other categories of refugees. Shaikh Jabbar said that all the Arab States were willing to help out in connection with the refugees in so far as such action did not adversely affect their other “problems” in connection with Palestine.

Mr. Bakr stated that Iraq had already compiled a number of surveys which might be useful in connection with Mr. Clapp’s study of Iraq’s river development projects. Mr. Clapp said that he wished to make full use of all available studies since it was not possible in the short time available to the Mission to make detailed independent surveys of each individual project.

Dr. Malik said he wished Mr. McGhee would clarify what he and Mr. Clapp had said concerning the Economic Survey Mission’s terms of reference. Specifically, by approaching the economic problems of the Near East from an area basis was it envisaged that the Arab States would be called upon to cooperate with Israel and would the elimination of what had been referred to as “artificial barriers” refer to trade barriers with Israel? Mr. McGhee replied that he realized the difficulty of this problem to the Arab States but it was naturally the hope and objective of the United Nations to remove artificial barriers in the area which constituted obstacles to the resumption to normal conditions, and which thereby constituted a threat to area and world peace. At some stage trade must be resumed throughout the area; oil would again flow through its pipelines; and airplane and shipping services which have existed in the past would be restored to full operation. Mr. Clapp stated that it was obvious no useful purpose would-be served by his mission if it should recommend that development schemes be implemented and if it should develop that the resultant increased production of the area could not find its way to the logical market outlets in the area. Shaikh Jabbar said that the more he learned about the scope of the Mission’s activities the more limited he believed were its possibilities for success.

Mr. McGhee said that implicit in the entire undertaking of the Survey Mission was the understanding that there would have to be outside assistance to implement the recommendations which would be made. This was clear, for example, in the President’s statement in announcing Mr. Clapp’s appointment, the contents of which were familiar to all those present. He was sure it was understood that this government could make no commitments in this connection in advance of Congressional authorization but the desire of the United States to support the work of the Economic Survey Mission was manifest. With that in mind, it was also clear that the President could not recommend to Congress that it provide financial support for the implementation of any plans recommended by the Mission should it appear in advance that such plans were doomed to failure by virtue of artificial barriers and restrictions maintained by states in the area. Such barriers as are clearly artificial must in time be eliminated if any solution to the problems is to be successful.

Dr. Malik said that it was apparent that conditions could only be stabilized in the Near East if at some stage the State of Israel and the Arab States settled down to live together in peace. However, he felt that this government had a definite responsibility to give guarantees to the Arabs States which would enable them to do so. Mr. McGhee replied that this Government was lending the fullest possible support to the endeavors of the United Nations to facilitate the final settlement of the Palestine controversy and would continue to do so. Its function in this respect was not, however, to impose the terms of such a settlement upon the parties to the controversy. It was rather for the Arab States and Israel to work out, through the machinery which the United Nations had set up, the bases of a settlement that would provide the guarantees of peace which Dr. Malik had in mind.

1. Mr. McGhee, in letters to the Arab diplomatic representatives on September 7, enclosed copies of the press communiqué issued by the Palestine Conciliation Commission on August 24. The communiqué outlined the objectives and functions of the Economic Survey Mission (501.BB Palestine (E)/9–749).