Foreign Relations of the United States, 1950, The Near East, South Asia, and Africa, Volume V

S/P–NSC Files, Lot 61 D 167¹

Memorandum by the Acting Secretary of State to the Executive Secretary of the National Security Council (Lay)

top secret

[Washington,] February 27, 1950.

Subject: First Progress Report on NSC 47/2, “United States Policy toward Israel and the Arab States,” approved as Governmental Policy on October 17, 1949.²

There follows an account of important developments affecting the policy set forth in the report entitled United Slates Policy Toward Israel and the Arab States (NSC 47/2):

1. Despite United States representations Israel has not accepted the recommendation contained in subparagraph (c) of paragraph 16 of the report to the effect that Israel should accept the principle of maximum possible repatriation of refugees and should immediately begin actual repatriation on a reasonable scale. The implementation of this recommendation has been further adversely affected by the Israeli policy of fostering constant Jewish immigration into Israel and the settlement of Jewish refugees in houses and upon land belonging to the Arab refugees. Another unfavorable development in connection with this recommendation has been the fact that the Arab states rejected as insufficient the offer made by Israel to repatriate in the neighborhood of 100,000 refugees at a later date in connection with a general peace settlement.

2. The recommendation in subparagraph (d) of paragraph 16 that the Arab states should accept the principle of substantial resettlement of refugees in their territories has not been accepted by the Arab states, but has been favorably affected by a growing realization in the Arab states that the return to their homes of the majority of the refugees is physically impossible and the acceptance by the Arab states of the refugee relief and works program recommended by the United Nations Economic Survey Mission headed by Gordon Clapp. (See below.)

3. An important development affecting subparagraph (f) of paragraph 16 has been the adoption by the General Assembly on December 8, 1949 of a resolution establishing a Palestine Refugee Relief and Works Agency, as recommended by the United Nations Economic Survey Mission, to carry out a combined relief and works program to assist the refugees. This agency will be headed by a Director responsible to the General Assembly and will have an Advisory Commission consisting of representatives of France, Turkey, the United Kingdom, and the United States. The program envisages the gradual replacement of direct relief of Palestine refugees by a program of public works which will better the condition of the refugees and materially improve the areas in which the refugees are located. It is estimated that the program will also show the Near Eastern Governments the way to similar development projects for the improvement of the local economy. While the program envisaged by this resolution does not furnish a political solution of the Arab-Israeli dispute concerning repatriation and resettlement of refugees, it does foresee the end of international assistance for direct relief and, by assisting the Arab countries to integrate the refugees into the local Economy, it paves the way for future resettlement for many of these people.

The President in a letter to Congress dated January 30, 1950,³ has recommended that the United States contribute $27,450,000, which is one-half of the $54,900,000 estimated by the General Assembly as necessary to operate the relief and works program for the eighteen-month period recommended by the Economic Survey Mission.

4. A favorable development has occurred in connection with subparagrah (h) of paragraph 16; which states in part that the United States should assist the Israelis and the Arabs to achieve a final settlement of the territorial question in Palestine. Encouraged to do so by the United States Government, Israel and Jordan have entered into direct negotiations looking toward a final settlement of the problems outstanding between them. Although progress in these talks has been slow, the fact that they are being held at all is encouraging. The United States Government will continue its policy of urging the parties to enter direct negotiations with each other. The possibility of the full implementation of the territorial solution recommended in this subparagraph is becoming increasingly unlikely as the passage of time enables the parties in control of parts of Palestine to consolidate their positions.

5. The United States, as a member of the Palestine Conciliation Commission, succeeded in incorporating into the proposals submitted by the Commission to the General Assembly the principles set forth in the recommendation concerning Jerusalem found in subparagraph (i) of paragraph 16 of NSC 47/2. However, the General Assembly decided, by its Resolution of December 9, 1949, to direct the Trusteeship Council to draw up a statute for the full internationalization of Jerusalem as a corpus separatum in accordance with the recommendations of the General Assembly resolution of November 29, 1947. The United States opposed this move by the General Assembly, believing the resolution to be impracticable in the present circumstances. The United States will, however, cooperate with the Trusteeship Council in the drafting of a statute for Jerusalem in accordance with the General Assembly’s instructions.

We continue to believe that an equitable solution could be based upon certain principles, including protection of and free access to the Holy Places under United Nations auspices, and shall continue our efforts to foster a solution which will meet with a reasonable degree of concurrence by the world community and by the two nations most directly involved. The United States will not support action in the Trusteeship Council looking toward the enforced implementation of a statute for Jerusalem against the wishes of Israel and Jordan.

Meanwhile, Israel and Jordan are engaged in direct conversations concerning the future of Jerusalem, and it seems possible that they may reach an agreement on the issues involved. In this case an important question will be the necessity of satisfying the desire of the international community to see that its legitimate interests in the Holy City are safeguarded.

6. The recommendation in paragraph 17 concerning the export of military material to Israel and the Arab states is being carried out. The United States has been granting export licenses for shipments of military equipment both to Israel and the Arab states, but only for shipments of equipment considered necessary for maintenance of internal order and for legitimate self-defense needs. An unfavorable development in this connection has been the strong criticism of this Government by the Israeli Government, which has alleged that the United States, in not attempting to prevent the shipments of arms to the Arab states by the United Kingdom, is fostering an arms race in the Near East and encouraging the Arabs to resume hostilities. The United States Government has received no evidence of any serious preparations by the Arabs to begin the war again.

7. With reference to the recommendation in paragraph 19 that we should endeavor to prevent discrimination against Jews in the Arab states, the United States Government, upon receiving reports alleging discriminatory action against Jews in Iraq, pointed out to the Iraqi Government that such discrimination would have a most unfortunate effect on world public opinion. Although information subsequently received indicated that the original reports were considerably exaggerated, it is believed that the approach of the United States Government had a beneficial effect upon the attitude of the Iraqi Government toward its citizens of Jewish faith, whose situation has recently improved.

With the exceptions noted, the policy set forth in NSC 47/2 is currently applicable and is being implemented so far as circumstances permit.

James E. Webb

1. Lot 61 D 167 is a serial file of memoranda relating to National Security Council questions for the years 1950–1961, as maintained by the Policy Planning Staff of the Department of State.
2. Foreign Relations, 1949, vol. vi, p. 1430.
3. Not printed; but see footnote 1, to the memorandum by the Secretary of State to the President, p. 709.