S/ISA Files: Lot 52–26: “Israel”

Memorandum by the Executive Director, European Coordinating Committee, Mutual Defense Assistance Program (Bonesteel) to the Secretary of State

top secret

Subject: NEA Memo to the Secretary1 on additional economic assistance to Middle East in light of Israeli requests for $150 million (Mr. McGhee, 17 April, 1951)

1.
I have seen and discussed the subject NEA memo.
2.
The original FY ’52 foreign aid program, Title II, included nearly $1.0 million for Israel. This represented the considered estimate of the Executive Branch on aid required for Israel and desirable in the U.S. national interest under the concept of the total foreign aid bill. This should be the position defended by the Administration, unless an estimate of the U.S. internal political situation indicates the separate Israeli request would be substantially approved by Congress, with the explosive effects of such partisanship on the Arab States in the Mid-East.
3.
If this political estimate indicates that the better way out of a bad situation is to increase our proposed aid for Israel—and the same for the Arab countries—then I agree that a program such as suggested by Mr. McGhee might be put forward.
4.
In any event, it should informally be made plain to Members of Congress who intend to oppose the Israeli request, that the Israeli request is an outright suggestion for an international WPA which might further involve the U.S. Government in a moral commitment to support the three-year $1.5 billion program of the Israeli Government—a program contemplating further substantial immigration into [Page 646] a country which seems economically incapable of supporting even its present population.
5.
A decision on the subject is needed urgently. The Bureau of the Budget “marked” Title II without prejudice to further action on the Israeli request. NEA cannot finalize its programs for Congress until it knows whether or not to increase the present program.
  1. Supra.