501.MA Palestine/9–2949: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom 1

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3548. Dept concerned problem financing UNRPR pending GA consideration ESM Report which will furnish basis GA action future relief program. UNRPR cash expected run out about Dec. 15, after exhausting anticipated US contribution of $16 million matched by like sum from other countries, and supplies in pipeline about Jan. 15. UNRPR operating agencies seeking assurances continuation program as cannot take risks inherent in abandoning relief during winter.

Anticipated SYG will propose at UNRPR Ad Hoc Advisory Comite mtg Oct 4 GA be asked give early consideration this problem, prior receipt ESM Report, and seek auth advance of $3 million from Working Capital Fund to meet UNRPR requirements until Feb or possibly more to finance operations thru March. Dept most anxious avoid any GA action this question until ESM interim Report recd early Nov and until inter-related parts Palestine problem as whole can be considered by GA because any proposal to extend UNRPR operations even temporarily wld inevitably invite premature discussion future program, which can only be properly considered when ESM report recd. To meet gap in funds that will inevitably arise pending action by govs on GA res, and give assurances to agencies of continuation operations without prejudice nature and extent future program, Dept proposes recommend SYG appeal to IRO for assistance in form of supplies and funds for which no immed allocation by it to its own program expected. We believe IRO presently in position grant such assistance and wld hope favorable action cld be taken by it at Gen Council mtg Geneva beginning Oct. 11. IRO report on fin position as of March 31, 1949, showed unallocated funds equivalent to about $15 million of which substantial amount in sterling. Dept understands IRO presently unable apply large part these holdings to IRO operations and also IRO commodity inventories are high. View this situation and previous IRO assistance to UNRPR, Dept believes appeal IRO for assistance at this time shld result in favorable response.2

For your info Dept discussed foregoing with Brit Emb and asked for comments in hope estab identical position this subj at Ad Hoc Advisory Comite mtg Oct 4 and at IRO Gen Council.

Webb
  1. This telegram was repeated to New York.
  2. London, on October 1, advised of the preliminary views of the Foreign Office, namely, that the IRO should not be depended on for financial assistance and might help in a very limited way with supplies and that the IRO would be the best agency to take over the work of UNRPR (telegram 3946, 501.MA Palestine/10–149).