501.BB Palestine/9–2649
Memorandum by the Assistant Secretary of State for Near Eastern and African Affairs (McGhee) to the Deputy Under Secretary of State (Rusk)1
Subject: Long Term Organization to Continue Work of Economic Survey Mission
Problem:
The terms of reference of ESM2 include the preparation of a long term organizational plan to operate in the field of relief and resettlement of the refugees from hostilities in Palestine. At Mr. Clapp’s suggestion the outline of such a plan is to be prepared by the Department for ESM consideration. A draft to be submitted to Clapp is attached (Tab A).3
[Page 1404]Discussion:
The enclosure outlines an organization (Near East Settlement and Development Authority) to function with the Palestine Commission (see separate paper on that subject)4 on the assumption that the US, UK and France agree to establish it. Other members of the UN may be admitted to NESDA. NESDA’s role would be advisory and coordinative; it would have a staff to continue the work of ESM, and it would be consulted by its member governments before assistance was furnished to states concerned. Funds to operate its programs would come from bank loans, compensation, grants from abroad, and other sources. It would have no veto over projects of its members, but its authority would stem from its knowledge of the area and undertakings to consult it before funds were made available for development.
NESDA’s work would be coordinated with relief operations of UNRPR or its successor through the Agent General.
NESDA would call on the UN and specialized agencies for administrative and technical staff.
It is proposed to discuss the establishment of NESDA with the UK and France through the ESM deputies and simultaneously in Washington with the Embassies, in order that timely action may be taken as necessary by this session of the GA.
Recommendation:
Authorization to proceed with these discussions along the lines of the attached paper is recommended.
[Here follow concurrences.]