Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 1

884A.00 TA/7–2552: Telegram

No. 460
The Ambassador in Israel (Davis) to the Department of State

secret
niact

Tel Aviv, July 25, 1952—7 p.m.

142. For Byroade. After discussion with Mikesell, Fryer, and McDaniel, and in view seriousness present Israel fin situation, I have made appointment with PriMin as only one in position influence Cabinet. Shall be accompanied by Mikesell and we shall endeavor accomplish following: (1) Impress BG with importance of immed consideration by Cabinet of fon currency budget; (2) enlist if possible his support for adoption of and adherence to realistic budget; (3) ensure that gravity present situation is appreciated at Cabinet level; (4) explain delay in Mikesell interim report which FonMin requested be expedited (see Embtel 102)¹ has resulted because of difficulties encountered by IG in providing essential data complete fin picture.

Dept is assured that no info re content or recommendation interim report will be divulged to PriMin or anyone else prior arrival in Wash of Mikesell’s interim report for official consideration there. Effort will be made to convince PriMin to support view that it is in Israel’s best interests that solution to present difficulty shld be one that will avoid recurrence of periodic financial crises.

Davis

1. Not printed.