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

IO Flies

Department of State Position Paper¹

secret
SD/A/C.1/373

[Washington,] October 12, 1951.

The Palestine Question

the problem

To determine the position of the United States on the various aspects of the Palestine question which will be considered at the Sixth General Assembly, i.e., the report of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and the report of the Palestine Conciliation Commission (PCC).

recommendations

A. With regard to the report of the PCC:

1. The United States should initiate or support General Assembly action leading to the abolition of the PCC if the Commission’s report so recommends, or if the present conference at Paris indicates little or no chance of success.

2. The United States should initiate or support GA action commending the PCC and the parties at the Paris conference for their progress, if the PCC so reports, and urge the parties to continue (or renew) their efforts under the aegis of the PCC in order to achieve a settlement of the Palestine problem.

3. The United States should urge, if mutually agreeable to the PCC and the Director and Advisory Commission of UNRWA, that the General Assembly assign to UNRWA all aspects of the refugee problem including the reintegration program, renewing arrangements for the settlement of compensation claims, the protection of refugee rights, and the authority bestowed on the PCC under General Assembly resolution 194 (III) of 11 December 1948, relating to the facilitation of the economic development of the area.

4. In the event the abolition of the PCC is agreed upon, the United States should urge that the General Assembly:

(a) Assign the functions of the PCC relating to the final settlement of all questions outstanding between the Arab States on the one hand and Israel on the other to the Chief of Staff of the Truce Supervision Organization who for the purpose of carrying out such assignment would be designated UN Agent General for Palestine;

(b) Make him answerable to the Security Council for the purpose of reporting to that body and receiving such directives from it as it might give;

(c) Recommend to the Security Council that it continue to watch closely the Palestine question;

(d) Request the Security Council to submit a special report on the activities of the Agent General for Palestine.

B. With regard to questions relating to the report of UNRWA, it is recommended that the United States Delegation:

1. Support the recommendations of UNRWA for relief and reintegration programs along the lines set forth in Section B of the attached draft resolution;

2. Indicate that the United States is prepared to pledge, subject to Congressional approval, up to $——million.

C. With regard to General Assembly action on both reports, the United States Delegation should urge that the items be considered together in one of the Political Committees and that they be dealt with in a single consolidated resolution, co-sponsored, if possible, by the Member States represented on the PCC and the Advisory Committee of UNRWA (France, Turkey, and the UK).

discussion

A. The PCC Report:

1. The report of the PCC will probably be the source of controversy. While the exact nature of the report cannot as yet be indicated it would seem wise to assume that the PCC in its report will indicate failure in its efforts to reach some degree of settlement of the issues outstanding between the Arab States and Israel. In so indicating, it will quite possibly point out: (a) that its very terms of reference made negotiating virtually impossible since the Arab States have refused to sit down at the same table for the purpose of negotiating with the Israelis; (b) that the Israelis for their part have indicated a basic hostility to the mediating initiative of the Commission; (c) that for negotiating reasons the Arab States continue to use the settlement of the refugee question, particularly the issue of repatriation, as a pretext for their failure to reach a political settlement with Israel, while Israel for its part has little if any intention of repatriating any Arab refugees, although Israel might pay substantial compensation for the property of refugees who are not repatriated; (d) that even with the matter of refugees out of the way there is no present likelihood that the Arab States collectively wish to reach an ultimate peace settlement with Israel, and Israel, for its part, evidences no basic willingness to compromise in the interests of a possible peace settlement with any single one of its neighbors. The report would summarize the situation as it exists today as being one which can only be resolved through indication by the Arab States and Israel of good faith and of a willingness to make concessions and to face existing realities, such as the following:

a. Repatriation of Arab refugees to Israel is a dead issue.

b. Substantial territorial readjustments are entirely unlikely.

c. Israel must give concrete indications to the neighboring Arab States of its willingness to pay substantial compensation to Arab refugees and make such substantial political and economic concessions as will indicate to the Arab States that Israel truly desires to live at peace with them and will not remain a threat to their individual and collective security. The report might conclude that the PCC feels that it is no longer qualified both by the terms of its reference and by its own prestige to continue to act as the United Nations body for carrying out these obligations. Whether or not, however, the PCC did recommend its own dissolution, the General Assembly would be confronted with a record of failure about which its Members would undoubtedly feel impelled to consider remedial steps.

2. Faced with a report of this kind, the Members of the General Assembly may be willing to accede to the suggestion that the PCC be dissolved but they will desire that some instrumentality should exist for carrying on the United Nation’s obligation to achieve a settlement of the Palestine problem.

3. If the General Assembly abolishes the PCC it must decide what is to be done with the assigned functions of the commission. These functions are: (a) working out arrangements relating to repatriation or resettlement and compensation of Arab refugees; (b) negotiation of all political problems remaining in the way of a final peace settlement of the area.

It would seem feasible that with regard to (a) these functions of the PCC could be transferred to the UNRWA. The refugee office of the PCC, together with records and personnel required by the UNRWA, could be transferred to the UNRWA on the assumption that the budgetary allotment for this office could be made available to the UNRWA. Such a transfer would have the following advantages:

a. It would be the most effective step possible to remove the problem of refugees from future political negotiations and it would treat the problem in the context of an economic and social problem involving legal and economic rights of individuals;

b. It would remove the current confusion now apparent in the Palestine area over two United Nations agencies associated with the Arab refugee problem;

c. Handling refugee reintegration and compensation might be more efficient and at the same time this administrative arrangement might enable the agency to use the negotiation and payment of compensation as a means of assisting reintegration. The functions relating to the protection of Arab refugees rights and property could also be transferred to UNRWA. There are no fundamental or budgetary problems connected with this transfer.

In view of the present inability to foretell the extent of the PCC’s success or failure at its Paris conference; the administrative and political problems entailed in a transfer of these functions from PCC to UNRWA; and the fact that both the PCC and the UNRWA Director, Mr. Blandford, are expected to be in Paris for part of the General Assembly session it would seem logical for the Commission Members and Mr. Blandford to consult together and agree upon the nature and extent of the transfer of functions which ought to be made. For the reasons cited we would favor such transfer as might be agreeable to the PCC and the Director and Advisory Committee of UNRWA.

4. As for the remaining functions, i.e., those relating to the political negotiation of a final peace settlement for the area, it is believed that the General Assembly could assign these functions to an Agent General for Palestine. We believe that this position should be held by the present Chief of Staff of the UN Truce Supervision Organization, Lt. General William E. Riley. In our opinion the consolidation of functions would reduce the apparent proliferation of UN efforts in the Palestine area. General Riley’s prestige, experience, and negotiating ability make him ideally suited for this function.

5. The terms of reference of the Agent General for Palestine would be indicated for him by the General Assembly resolution establishing the position. The General Assembly could also make him directly answerable to the Security Council for the purpose of reporting to that body and receiving directives from it. By making the Agent General for Palestine answerable to the Security Council, the General Assembly would be assuring itself that the parties would be under much greater continual political obligation to settle their difficulties than is the case today where the PCC, as an agency of the General Assembly, finds itself able to report to its parent body only on an annual basis. It has been our experience that the Palestine question is one of the very few cases in which the Security Council has been able to function continually through a majority vote without Soviet objection. It is suggested that the Council should continue to demonstrate and exercise its authority through this procedure of answerability. Another attraction to this set-up is that changed circumstances during the course of the negotiations possibly leading to a settlement can produce situations where the Council could promptly clarify and expand the functions as the situation dictated. Under present conditions the PCC has had to labor under the difficulties of receiving instructions and terms of reference only annually, at best.

6. It is, of course, possible that the PCC may be able to submit a report, as a result of the present conference in Paris, which would indicate some degree of progress toward the final settlement of the Palestine problem. If this were the case there would be little likelihood that the Commission could or would be replaced by a new method of negotiation and settlement such as the suggested Agent General for Palestine. Accordingly the Delegation should be prepared to indicate its initiative or support for a resolution urging the Commission and the parties to continue or renew their efforts to reach a final settlement of the Palestine problem. (An alternative draft covering this possibility is included in Part A of the attached draft resolution,) Such resolution, however, could well contain the provisions set forth in paragraph 3 above concerning the PCC’s present functions relating to refugees.

B. Report of UNRWA.

7. The report and recommendations of UNRWA have not yet been submitted. It may be anticipated, however, that the report will recommend a three-year reintegration and relief program in amounts approximating those set forth in the attached resolution.

8. During the spring and summer months the Director and Advisory Commission have taken advantage of the somewhat more cooperative attitude displayed by the Arab Governments with regard to the reintegration program which was authorized by the General Assembly in resolution 393 (V) of December 2, 1950. In these conversations the Arab Governments have indicated that they would be prepared to proceed with reintegration projects provided that the refugees did not surrender their right to repatriation or their rights to compensation. They further indicated that in proceeding to cooperate in the program they must be assured by the major contributors that the latter were prepared to see the program through. During the past two months Mr. Blandford, who succeeded General Kennedy as Director, has been pressing ahead with discussions with the Arab Governments, and has virtually completed negotiations with the Jordan and Egyptian Governments for projects in those countries which will provide homes and continuing employment for a substantial number of refugees. The internal political situation in Syria has prevented conclusive negotiations on projects, but the Syrian Government, nevertheless, is inclining a receptive ear to several alternative types of programs. The Government of Iraq, which until recently has not been at all disposed to talk about reintegration of refugees other than those it is presently caring for (4000), has recently indicated a more cooperative attitude but insisted that reintegration possibilities in the other Arab countries first be exhausted. On the basis of these developments, combined with the provisions in the Mutual Security Act authorizing the United States to contribute up to $50 million for the Palestine refugee program, the time is now ripe to adopt a target date for the completion of this program and to estimate the total costs. The adoption of such a program at this time will be of value to contributing governments in making their future plans and to the Agency in concluding its negotiations with the Arab Governments.

9. Comment on Section B of Draft Resolution.

The following comments deal with the paragraphs of the draft resolution concerning the operation, budget, and organization of UNRWA.

Paragraphs 14, 15, and 16

The figures cited in these paragraphs are State Department estimates which may need to be revised after the Report of UNRWA is available.

The estimated cost of the three-year reintegration program is a rough calculation for the settlement of between 100,000 and 150,000 refugee families (5 to a family) at a cost of between $1,000 and $1,500 per family. This will not take care of all the 880,000 refugees who are now on the Agency’s ration rolls. It is anticipated, however, that economic development programs of the countries concerned will be accelerated by United States grant aid in addition to bank loans, and that a substantial number of the urban refugees will find employment opportunities in this manner rather than by the direct assistance of the Agency. The Agency will give primary emphasis on agricultural projects. This estimated cost does not include the value of lands which the Arab Governments are expected to make available. We believe it important to make note of this point in the resolution in order that there may be no misunderstanding between the Agency and the Arab Governments regarding payment for lands.

A figure of about $60 million for continuation of the relief program for three years takes account of the fact that relief costs cannot be too sharply reduced until reintegration projects are actually completed. The direct aid and services contributed by the Arab Governments are of real value to the Agency and should be recognized. They are specifically mentioned in these paragraphs in order to show that the sums required for relief must be in currency or supplies. A revised budget for fiscal 1952 is necessary because of the probable availability of $50 million from the United States under the Mutual Security Act. This is equal to the total amount requested for UNRWA by the General Assembly in resolution 393 (V).

We have been pressing the British and French to increase their contributions for fiscal 1952 in view of the opportunities for carrying out the program which are now offered. These efforts will be continued prior to the General Assembly. The Department has proposed that the British offer of last December to contribute $1 for every $3 contributed by the United States (assuming a U.S. maximum of $30 million and minimum of $25 million) be applied to a minimum possible $50 million United States contribution. The initial pledge made by the United States at the last Assembly was $25 million, but the announcement of a larger pledge awaits the completion of appropriation legislation. We are also urging the French to contribute one-half of the amount contributed by the British. The ratio of 6–2–1 between the US, UK and France is approximately the ratio between their respective contributions to the regular budget of the United Nations. If the British and French contributions materialize at this ratio, a sum of $75 million would be available for the period July 1, 1951, to June 30, 1952. Pledges to date from other governments for this period come to approximately $1,800,000 exclusive of direct aid and services of the Arab Governments. It is anticipated that the Agency will request at least $25 million for relief, rather than $20 million because of higher costs. As provided in General Assembly resolution 393 (V), the balance would be available for expenditure or commitment on reintegration.

Although we have no reports on what the Agency is contemplating for fiscal 1953, it is reasonable to expect it to recommend a larger figure for that year than any other. For this reason a tentative figure of $90 million is indicated, with $70 million available for expenditure or commitment on reintegration, and $20 million for relief. During this fiscal year the Agency will need to be in position to make its maximum commitments even though expenditures may lag behind.

The following table recapitulates the foregoing and shows the estimated totals for each year:

	Reintegration	Relief	Total
1951–2	$ 55	$25	$80
1952–3	70	20	90
	25	15	40
	$150	$60	$210

Although it may not be possible fully to reach these targets, it is of great importance to indicate what they are and to show that a terminal date is definitely in view. UNRWA, like the IRO, may need an extension of life to complete its work. However, the approximate total costs should now be indicated and every effort made to raise the necessary funds. It should be understood that the contributing governments would not be expected to make payments on their contributions except as the Agency requires funds to carry out reintegration projects already agreed and to meet the necessary relief costs.

Paragraph 18

The Agency has been exploring with the Arab government the possibility of transferring to them the administration of the direct relief program. This is a responsibility which they will have to assume sooner or later, whenever international assistance is terminated. As long as the Agency is charged with direct administration it is subject to attacks by the refugees themselves and by the press. Both Jordan and Egypt are reluctant to undertake the administration of the relief program and wish to keep the Agency directly responsible for administration. A provision in the General Assembly resolution should be of assistance to the Agency in negotiating this transfer. There are certain advantages which the governments may derive from such a transfer, for their health, welfare and education programs will undoubtedly benefit from the assistance provided by the Agency.

Paragraph 19

No provision has been drafted on the method of financing. It is assumed, however, that contributions will be sought on a voluntary basis as in the past. The most important immediate task is that of establishing a firm commitment on the part of the UK and France for the current program as indicated above. It is to be hoped that the proposed ration of 6–2–1 or one approximating it, can be negotiated for the balance of the program. The additional sums required to meet the budget might be left to the Negotiating Committee if that body is re-established by the General Assembly.

Paragraph 20

This paragraph is similar to that in previous resolutions and needs to be maintained. The Agency has a good record of repayment of loans advanced from the Working Capital Fund. It has never requested more than $3 million and has sought loans only when they were absolutely necessary to carry on the program.

Paragraph 21

The terms of reference of the Advisory Commission, as set forth in resolution 302 (IV) have given rise to a few difficulties between the Director and the Advisory Commission. Under paragraph 8 of that resolution the Advisory Commission was “to advise and assist the Director of UNRWA in the execution of the program; the Director and Advisory Commission shall consult with each Near Eastern government concerned in the selection, planning and execution of projects”. During the first year of operations these functions were justifiable, particularly in view of the fact that the Members of the Advisory Commission were selected by their governments to spend full time on the work of the Agency. With the experience gained and with the selection of Mr. Blandford as Director, the role of the Advisory Commission in the execution as well as the selection and planning of projects is less important. There have been suggestions that the Advisory Commission be abolished. We do not concur in that suggestion, but consider that a re-definition of functions along the lines contained in paragraph 10 will clarify its role.

Draft Resolution on Palestine Question

The General Assembly

Recalling its resolution 194(III) of December 11, 1948; 302 (IV) of December 8, 1949; 393 (V) of December 2, 1950; and 394 (V) of December 14, 1950,

Having examined the report of the United Nations Conciliation Commission for Palestine (A/____________) and the report of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) (A/_______________),

(In the event the PCC is to be replaced)	(In the event the PCC is to be continued)
Noting with concern that agreement has not been reached between the parties concerned on the final settlement of questions outstanding between the parties concerned	Noting that the report of the United Nations Conciliation Commission for Palestine indicates that some (good) progress toward the final settlement of the Palestine problem has been made by the parties concerned

Recognizing that in the interests of the peace and stability of the Near East such a final settlement should be achieved,

A

1. Considers that the governments and authorities concerned have the primary responsibility to reach a settlement of their outstanding differences.	1. Considers that the governments and authorities concerned have the primary responsibility to reach a settlement of their outstanding differences.
2. Urges the governments and authorities concerned to extend the scope of the Armistice Agreements and to seek agreement with the view to an early settlement of all questions outstanding between them.	2. Urges the governments and authorities concerned to extend the scope of the Armistice Agreements and to seek agreement with the view to an early settlement of all questions outstanding between them.
3. Expresses its appreciation for the efforts of the Conciliation Commission to carry out its mandate, and particularly for the report of the United Nations Economic Survey Mission for the Middle East and for the work of the Commission in examining the problem of compensation;	3. Commends the Conciliation Commission for Palestine and the governments concerned for the progress which they have made toward a final settlement of the Palestine problem,
4. Decides to heed the request of the United Nations Conciliation Commission for Palestine that it be discharged of its duties:	4. Requests the conciliation Commission to report to the next General Assembly on the further efforts which it may undertake pursuant to this resolution.
5. Establishes an Agent General for Palestine who shall undertake the task of achieving a final settlement of the questions outstanding between the parties and toward this end authorizes him to initiate and pursue such negotiations as he believes necessary and to report to the Security Council concerning his activities;
6. Designates the Chief of Staff of the Truce Supervision Organization as the Agent General for Palestine;
7. Requests the Security Council to give such directives to the Agent General for Palestine as it may decide upon and further requests the Security Council to submit a special report to the next General Assembly on the exercise of the functions of the Agent General for Palestine under this resolution;
8. Requests the Secretary General to provide the Agent General for Palestine with such assistance as may be necessary and to make appropriate arrangements to provide the necessary funds required for the performance of the Agent General’s functions under this resolution.

B

9. Commends UNRWA and the Near Eastern Governments concerned for the elaboration of constructive projects and the development of a forward looking program of lasting value to the refugees themselves and to the countries which receive them;

10. Considers that all phases of the refugee problem should now be dealt with by a single United Nations body and decides therefore that matters pertaining to the Palestine refugees and to economic development, hitherto entrusted to the Conciliation Commission, shall in the future be dealt with by UNRWA;

11. Considers that the three-year program of reintegration recommended by UNRWA should be implemented and that every effort should be made to conclude both the relief and reintegration programs not later than June 30, 1954;

12. Directs UNRWA to make the necessary arrangements for the settlement of refugee compensation claims due from Israel, and requests UNRWA and the Government of Israel to consult together with a view to the provision of payments by Israel to discharge compensation claims;

13. Requests the Secretary General to provide the Director of UNRWA with such staff and facilities as may be necessary to enable UNRWA to carry out the functions hitherto entrusted to the Refugee Office of the Conciliation Commission.

14. Considers that the equivalent of approximately $150 million will be required to carry out a three-year reintegration program for the period July 1, 1951, to June 30, 1954, exclusive of the value of lands to be contributed for this purpose, and that the equivalent of approximately $60 million in currency or supplies will be required for relief during the period July 1, 1951, to June 30, 1954, exclusive of contributions from local governments in direct aid and services;

15. Approves the revised budget recommended by UNRWA for the period July 1, 1951, to June 30, 1952, amounting to the equivalent of $80 million, of which $55 million shall be available for the reintegration program and not more than $25 million for relief, exclusive of direct aid and services;

16. Approves the budget recommended by UNRWA for the period July 1, 1952, to June 30, 1953, of the equivalent of $90 million of which. $70 million shall be available for reintegration, and not more than $20 million for relief, exclusive of direct aid and services;

17. Authorizes UNRWA, as circumstances permit, to transfer funds available for relief to the reintegration program;

18. Calls upon the governments concerned to conclude agreements with UNRWA for the transfer of administration of the direct relief program to those governments with the understanding that UNRWA will continue to carry the cost of the supply program and to provide assistance for the health, welfare and education programs, subject to such inspection and verification of accounts as may be necessary for UNRWA to carry out;

19. (Methods of Financing);

20. Authorizes: the Secretary General in consultation with the Advisory Committee on Administrative and Budgetary Questions, to advance funds, deemed to be available for this purpose and not exceeding $5 million, from the working Capital Fund to finance operations pursuant to the present resolution, such sum to be repaid not later than 31 December, 1952;

21. Decides that the Advisory Commission in lieu of the functions attributed to it in paragraph 8 of resolution 302 (IV) of December 8, 1949, shall perform the following functions:

(a) Adopt quarterly plans of expenditure after review of proposals submitted by the Director;

(b) Collaborate with the Director in making recommendations concerning the program, budget and operations of the Agency for submission to the General Assembly;

(c) Advise the Director on the coordination of other programs of economic development in the area;

(d) Advise the Director on such policy matters as may be submitted to it by the Director or raised by any of its Members;

20. Requests the governments concerned to cooperate with the Agent General and UNRWA and to extend them every facility for the purpose of carrying out this resolution;

21. Commends the United Nations International Children’s Emergency Fund, the World Health Organization and the United Nations Educational, Scientific and Cultural Organization, for the cooperation and assistance which they have rendered to UNRWA and urges them and other specialized agencies concerned to render all possible services, taking into account the emphasis to be given to the reintegration program;

22. Expresses its thanks to the various religious and philanthropic organizations whose programs have brought much needed supplementary assistance to the Palestine refugees and requests the Director of UNRWA to explore with them the possibilities of increased assistance in connection with the reintegration program.

1. Prepared as a position paper for the U.S. Delegation at the Sixth Regular Session of the United Nations General Assembly. The Report of the Palestine Conciliation Commission (U.N. Doc. A/1985) was considered by the Assembly at the 33d to 41st meetings of the Ad Hoc Political Committee between January 7 and 15, 1952. The question of assistance to Palestine refugees was considered by the Ad Hoc Political Committee at its 42d to 47th meetings from January 16 to 22. The Report of the Committee (U.N. Doc. A/2070) was considered by the General Assembly at its 364th and 365th plenary meetings on January 26, 1952.