357.AC/6–2150: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
3494. Embassy officer discussed yesterday with Furlonge Depcirtel June 16, 6 a. m.1 re Arab reply PCC. Furlonge, while noting unyielding attitude of Arab states on principle of repatriation, said Foreign Office has felt that what Arabs really want and expect is compensation for refugee property in Israel. Foreign Office is studying possibility suggesting to Department that US and UK (and possibly French) might approach Israelis with suggestion latter indicate publicly that in any negotiations with Arab states they would be willing discuss principle of compensation in amounts within limitations their resources.
[Page 938]We noted foregoing based on assumption Arabs more interested in material aspect than in what they regard as matter of principle. Given unrealistic nature their public stand, we wondered whether this was really case. Furlonge replied that one Arab state (Jordan) had accepted idea of compensation in agreed statement of principles which Jordan and Israel had initialled in February. We noted Jordan (or King, at least) had always been more realistic re settlement with Israel than other Arab states which, because of their less exposed positions, seem more inclined stand on unrealistic matters principle.
Comment: We suggest Department may wish give careful consideration possible efficacy approach to Israelis along foregoing lines as possible means contributing to break in present deadlock.
Department pass Amman 25. Sent Department 3494; repeated information Ankara 19, Baghdad 40, Cairo 91, Jidda 38, Tel Aviv 49, Paris 1060, Beirut 12, Damascus 25, Jerusalem 11.