320/11–2251: Telegram

The Secretary of State to the Department of State

confidential

Delga 305. Subj: Palestine. Nov 21 Jessup and staff members consulted with Blandford. Jessup outlined Dept’s position on possibility locating repatriation and compensation functions of PCC in UNWRA. Blandford strongly opposed this for following reasons going so far as to say it might threaten success of his program.

1.
UNWRA has been able establish considerable good will with Arab govts as non-political agency working solely on refugee care and maintenance, resettlement and reintegration. Addition of political issues wld create serious obstacles. Obviously UNWRA work handicapped by political developments but now it is able maintain degree of detachment from political questions which wld be impossible if repatriation and compensation functions transferred to UNWRA.
2.
There is relatively little relationship between compensation which might come from Israel and refugee care and reintegration program since small percentage (Blandford hazarded guess 20 percent) of refugees presently cared for by UNWRA wld be eligible for compensation.
3.
Political issues including repatriation and compensation can best be handled by separate individual working with Arab Govts, taking problems up piece by piece. Blandford gave blocked accounts and possible minor territorial adjustments as possible face-saving device as illustrations. In response to question re Israeli proposal for payments into UNWRA capital fund Blandford said such payments wld pollute the fund and make it difficult for Arabs to accept payment for assistance from this source.

Re position of Palestine item on agenda, Blandford indicated Arab states had expressed some interest in having discussion of PCC report and UNWRA report separated. He agreed and felt it desirable to get major political discussions out of way on PCC report and have discussion of UNWRA report restricted to technical and financial aspects of program.

Blandford agreed PCC shld be liquidated. Riley’s views and functions not discussed with Blandford.

Acheson