683.84A322/9–1953

No. 670
The Acting Secretary of State to the Embassy in Israel

secret

226. FYI. Question of release economic aid figure discussed yesterday by Eban and Byroade. Eban informed that communication containing allocation figures was about to be sent him when word received here of dam construction activities in Banat Yaacov area. Byroade stated that from information available here we at loss understand purpose and intent behind this unexpected and apparently hasty move on part Israelis; that it appeared move might result in armed action. We do not as Government wish to release allocation until this matter clarified. Our position explained more in terms our concern lest timing of US assistance coincide with action on their part which might result in hostilities rather than on straight quid pro quo bargain basis. Nevertheless feel Eban got the point.

Advise Bennike decision earliest.

Smith