784A.5 MSP/2–2752: Telegram

No. 404
The Ambassador in Israel (Davis) to the Department of State 1

confidential

880. Embtel 879, Feb 27 re signing this morning of agreement under Section 205 Mutual Security Act.2

[Page 898]

In conversation with Foreign Minister Sharett, I took occasion mention several points covered in Embtel 844, Feb 20.3 Stressed importance to effective economic cooperation of continuing to have the complete detailed info now being supplied by GOI authorities. Also reminded Foreign Minister of our great interest in efforts improve Arab-Israel relations. Sharett said he appreciated importance of supplying info referred to, and agreed that everything possible should be done to improve Israel’s position with respect to its neighbors. Said he was glad to say GOI had recently received from Jordan sources an indication of interest in improving relations with Israel. Foreign Minister Sharett plans leave tomorrow for Paris enroute London where he expects remain for several weeks.

Davis
  1. Repeated to Paris, London, Ankara, Beirut, Damascus, Amman, Cairo, Baghdad, and Jerusalem.
  2. Telegram 879 from Tel Aviv, Feb. 27 (884A.00 TA/2–2752), referred to the exchange of notes that morning effecting an economic assistance agreement between the United States and Israel relating to the relief and resettlement of refugees; for the text, see 3 UST (pt. 3) 3703.
  3. Telegram 844 from Tel Aviv, Feb. 20, referred in part to a procedure initiated on Jan. 14 under which semimonthly conferences were held with officials of the Ministry of Finance concerning the details of balance of payments, ordinary development and defense budgets, internal and external debt positions, current foreign exchange positions, and overall plans for the stabilization of the Israeli economy. The telegram also referred to Technical Cooperation Administration procedures for the disbursement of aid funds on the basis of programs covering specific projects; and to the importance for Israel of keeping its resources under constant scrutiny. (884A.00 TA/2–2052)