Foreign Relations of the United States, 1951, The Near East and Africa, Volume V

357. AC/6–1251: Telegram

The Secretary of State to the United States Representative on the Palestine Conciliation Commission (Palmer), at Jerusalem¹

secret

Washington, June 12, 1951—7 p. m.

137. Unpal 270. For Palmer.

• I. Re Palun 403² and 405³ Dept fully appreciates PCC’s and your anxiety re apparent lack progress toward achievement PCC’s assignments per GA Res 14 Dec 1950. However, Dept understood you and your colleagues had agreed on fol course of action and factors which necessarily meant slow progress: (A) Settlement refugee problem took priority over polit negots Pal peace; (B) Compensation and resettlement most important aspect refugee problem for which details shld be worked out promptly. (C) Details cld not be finalized until Anderson’s delayed arrival May. (D) In meantime negots with Israel re possible linking compensation and resettlement undesirable pending estimate Israel’s total compensation obligation. (E) Negots re this obligation considered impossible by PCC pending ascertainment likely source of funds whereby Israel cld pay compensation.
• II. Interim action PCC pending Anderson’s arrival included (A) drawing up and adopting Comgen/17/Rev. 1, which Dept deems satisfactory approach PCC problems and upon which Dept assumes PCC now operating and (B) meetings between Boissanger and various Arab leaders which indicated Arab appreciation necessity refugee reintegration together with continued opposition polit negots with Israel.
• III. Dept believes recent developments indicate possibility PCC might proceed more actively and accordingly any opportunities shld be exploited. Passage firm and impartial SC res May 18 which has had appreciable impacts on Israel and Arab States; public announcement intention to ask Congress sizeable sum for Arab refugees and funds for mil and econ assistance for Arab States and Israel; relative restraint Arab League’s May mtg and trend toward Arab willingness permit refugee resettlement; apparent effective resumption operations Syrian-Israeli MAC, all contribute Dept’s belief PCC backed by dipl support shld have new try.

Dept desires your views re fol possibilities or modifications thereof:

1. Israel Treatment of Arab Residents

Dept disturbed re conflicting accounts of condition and treatment Arab residents in Israel and believes basic and authoritative study this situation helpful. Dept believes this task within terms of reference PCC under its responsibilities re repatriation, compensation, econ and social rehabilitation and protection refugee rights and properties. Suggest you consult Emb, Tel Aviv re feasibility, desirability PCC undertaking such study. Comment requested re

• (a) usefulness resulting data with reference to possible repatriation plans;
• (b) time required for study;
• (c) probable extent Israel cooperation;
• (d) effect on refugees resulting from assembling and publication info;
• (e) repercussion study within Israel.

2. Repatriation

Dept appreciates prospects dim for any substantial repatriation but believes Israel might be approached again re this subject. In such approach PCC cld advance to Israel as argument that public announcement agreement some repatriation wld reduce charges Israel has not made even token compliance with successive GA reses. Pls forward estimate if obtainable Arabs officially repatriated and nr infiltrees and expellees.

3. Compensation. Dept welcomes arrival Andersen⁴ and believes his function will be useful. Dept assumes, per Part II PCC ref doc, PCC will seek agreement with Israel and Arab states on principle of compensation and total amt. Dept believes that ascertainment individual compensation claims shld proceed as evidence constructive activity behalf Arabs. While appreciating risk involved unfavorable refugee reaction if substantial or prompt payment not forthcoming, Dept believes risk worth taking and shld be undertaken without regard ability Israel to pay since info and estimates derived will be valuable for other reasons. Dept is of gen opinion that there is little likelihood Israel will be able to pay any substantial compensation. As PCC fully appreciates funds for such compensation probably can only come from sources outside Israel. Dept believes prospects very dim for internatl loan to Israel to pay compensation and recognizes Exim bank and IBRD credits not available for this purpose. Israel’s future dol receipts unlikely cover essential need Israel. Inescapable conclusion is that only practicable solution to meet compensation claims lies in possibility internatl contributions to compensation and/or reintegration fund. It is not considered likely that USG or Congress wld ever provide grant funds to pay Arab compensation claims over and above US contribution to reintegration. Dept believes when PRA resettles individual Arab claimants it shld require Arabs waive claims for compensation to extent full value benefits recd.

For claims other Arabs i.e., those not on relief or not awaiting resettlement Dept believes procedures contained in PCC ref document satisfactory. Dept believes possible aid to eventual peace settlement may derive from special negots compensation payment to influential Arab claimants. Dept also believes PCC might investigate and comment on possibility of Anderson’s performing function “honest broker” re property or blocked accounts which Arab refugees might volunteer to settle with Israel if intermediary channels open.

4. Possible Political Settlement

Arab States and Israel shld be urged to consider possible unilateral or multilateral non-aggression declarations vis-à-vis each other. Parties to Armistice Agreement might consider fol:

• (a) According to MAC greater scope handle current ad hoc problems now hindering estab better day to day relations. Addition polit reps might assist; (b) elimination, partition, reduction, or redelimitation demilitarized zones in light experience which has revealed deficiency present zones as factors for peace; In connection proposals for changes demilitarized zones if Arabs found it politically difficult take initiative alone, PCC might endeavor bring Jordan and Syria simultaneously to negot with Israel on problems of mutual interest such as el-Hamma salient; (c) define armistice lines or segments thereof as de facto national boundaries pending final settlement.

Fol unilateral actions by Israel not connected with Arab quid pro quo might be urged as constituting valuable progress toward Israel Arab peace: (a) opening free zone for Arabs at Haifa; (b) opening corridor for Arab traffic between Jordan and Egypt subject security safeguards; (c) offering to subject output Haifa refinery to internatl control; (d) releasing blocked Arab balances in Israel; (e) offering sealed freight car transit facilities between Lebanon, Egypt and Haifa-Jordan subject security requirements.

Re Palun 406.⁵ Dept believes that if PCC is to act upon any of suggestions outlined this tel, can do so best in Jerusalem. UN Secretariat has advised USUN Azcarate urges transfer PCC to Geneva in order to conduct certain polit negots. Nature of such negots not specified. In light previous experience Dept does not believe negots possible this distant venue.

Re Palun 407,⁶ just reed, Dept’s comments to follow.

Acheson

1. Telegram drafted by Mr. Ludlow in UNP: cleared in UNA, NE, and NEA; initialed by Mr. McGhee. Telegram repeated to New York; message air pouched to Amman, Baghdad, Beirut, Cairo, Damascus, Jidda, and Tel Aviv.
2. Dated May 9, p. 671.
3. Dated May 28; see footnote 4, p. 673.
4. Under General Assembly Resolution 394 (V) of December 14, 1950, the PCC had established on May 15, 1951, a Refugee Office. On May 22, Mr. Holger Andersen of Denmark took up his duties as Director of the Office.
5. In this telegram of June 1 Ambassador Palmer had stated in part that the PCC had adjourned that day to reconvene at Geneva not later than August 15 unless its Chairman (Ambassador Palmer) should call for an earlier meeting elsewhere. The Ambassador had stated he assumed the PCC would adhere to the decision to move to Geneva and asked the Department for travel orders. (357.AC/6–151)
6. Dated June 7, p. 704.