884A.00 TA/7–2653:Telegram
No. 644
The Chargé in Israel (Russell) to the Department of State
118. Joint Embassy-TCA. In response to request for appointment Hakirya, Tel Aviv, with Foreign Minister Sharett and Minister Finance Eshkol pursuant Department telegram 41,1 was informed Foreign Minister would see me at his home (Tel Aviv) yesterday but Eshkol unable be present. McDaniel and I called on Foreign Minister yesterday morning and after reviewing Eshkol’s remarks (Embassy telegram 1965)2 made point paragraphs 1 to 4 Department telegram 41.
Stating he was giving “interim off hand reactions,” Foreign Minister Sharett replied along following lines:
While Eshkol probably gave voice to “legitimate faith in Israel’s future as support for request for United States assistance,” Foreign Minister confident there was no intent change policy expressed paragraph 5A, Israel Embassy note August 11, 1952. He stated he would confirm this impression with Minister of Finance. Argued with reference statement paragraph 2 Department telegram 41 (negotiations who would take place Tel Aviv), that it would present Israel with “great difficulty” and be using its “dire need to force it into undignified position of upsetting time-honored routine of meetings with Ministry of Finance in Jerusalem.” Suggested further conference to make clear present Israel Government policies re paragraph 5A of August 11, 1952 note and that “to circumvent any difficulty presented by Embassy’s instructions re Jerusalem,” conference take place at Ministers of Finance in Jerusalem rather [Page 1263] than Foreign Ministry. Said he (Sharett) might or might not be present. I commented if such meeting were in Jerusalem it was a question—view importance of subject and my present instructions re Jerusalem—that [whether] his presence or his absence would present the greater difficulty and therefore meeting in Tel Aviv might be preferable.
I said that problem of whether financial negotiations to take place in Tel Aviv or Jerusalem had been precipitated by Israel’s moving Foreign Ministry, that Department had stated while it always prepared to hear Israel Embassy on any subject, prompt consideration by United States of Israel’s financial problems required discussions be initiated and concentrated in Tel Aviv; that Embassy–TCA would request Department’s guidance with regard his proposal for conference Jerusalem with Finance Ministry to clarify Eshkol’s remarks.
Comment: Embassy recommends [garble] authorized state of Foreign Minister that present practice of TCA discussions with Ministry of Finance in Jerusalem on ordinary questions of administration and implementation MSA program will be continued (Department telegram 32) but that discussions involving major problems of financial-economic policy, since they should be attended by representatives of both Finance and Foreign Ministries, must be held in Tel Aviv; and therefore meeting with Eshkol referred above should take place in Tel Aviv.