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

784A.5 MAP/11–2151: Telegram

The Ambassador in Israel (Davis) to the Department of State ¹

confidential

Tel Aviv, November 21, 1951—5 p. m.

505. Dept’s 345, Nov 10.² In view certainty Israel will approach US for substantial increase over current figure for econ grant in aid fiscal 1953 Emb believes fol desirable course action:

1. To suggest in advance to Israel Govt and Israel advocates in US need to relate US aid to Israel to basic factors affecting foreign relations of Israel and of US in ME. Friends of Israel shld be made aware of dangers implicit in approach such as was made by Israel in March 1951 in disregard all attendant circumstances except Israel’s need for funds, when harm was done to our policy objectives and to Israel-Arab relations.

2. Israel’s requirements shld be stated in terms of Israel’s internatl balance sheet to take into account indebtedness for compensation due to Palestine refugees. This indebtedness shld be liquidated as promptly as its amount can be assessed by UN, as matter of equal priority with Israel’s current cash needs.

3. In putting forward its request Israel shld relate requirements Israel over-all development program and grant in aid role therein clearly defined; shld emphasize needs to settle Jewish refugees already arrived and unassimilated, Israel’s intentions to make its way within limits of present frontiers (armistice lines), and intentions limit military actions to self defense and area defense.

4. Planning shld be precise enough to enable US aid mission to use as basis for daily pressure to assure proper handling of resources; it shld set priorities, i.e. farm development over urban housing, and timetables of production, import and export targets with terminal date of aid program in mind.

5. Plans of Israel to increase population through ingathering, shld be related in planning to absorptive capacity of country.

Davis

1. Repeated for information to Paris, London, Ankara, Amman, Baghdad, Beirut, Cairo, Damascus, Jerusalem, and Jidda.
2. Telegram 345 to Tel Aviv, November 10, not printed, stated that a representative of the Israeli Embassy in Washington had on November 9 submitted a “preliminary draft” note requesting economic assistance for fiscal year 1953 totaling $126 million, without including reference to grant military assistance. (884A.00 TA/11–1051) On November 19, Ambassador Eban handed Assistant Secretary McGhee a note formally requesting a grant of this amount from the U.S. Government for fiscal year 1953.