501.BB Palestine/8–849: Telegram
The Secretary of State to the United States Delegation at Lausanne
Unpal 239. In view Palun 267, Aug 8,1 and subsequent info from Porter2 in Washington, Dept did not understand that ref was being made at this time to ExImBank loan in discussions with Israeli del (Unpal 218, Aug 51).
[Page 1389]Depts position re loan has consistently been premised on achievement of peace in Palestine. In absence of peaceful conditions Dept obliged to review each application for allocation under loan to determine whether in light existing circumstances at time it shld be approved or deferred. Cancellation or long-term suspension of loan itself has never been under consideration at any time.
Re Haifa allocation Dept desired review application in accord above policy. ExImBank had, however, already taken position with Israeli reps that while allocation justified, Bank unable authorize in absence Depts agreement. Israeli Amb was seriously concerned and at loss to understand apparent difference of view between Bank and Dept. In these circumstances Dept considered it advisable to concur in position which had already been taken by Bank.
Israeli Amb understands Dept position that it will be necessary for Depts reps on ExImBank to continue their obligation to review all future applications under loan in light of situation in Israel and its internatl relations and that Israel shld not construe such action as either direct or indirect political pressure.
- Not printed, but see footnote 1, p. 1312.↩
- Mr. Porter, in a telephone conversation on September 23, informed Mr. Stabler that he had received a letter from President Truman accepting his resignation as U.S. Representative on the Palestine Conciliation Commission as of September 15 (501.BB Palestine/9–2349).↩
- Not printed, but see footnote 1, p. 1312.↩