Eisenhower Library, Eisenhower papers, Whitman file

No. 699
Memorandum by the Acting Secretary of State to the President1

secret

Memorandum for the President

Attention

  • General Paul T. Carroll

Subject:

  • Withholding Aid to Israel
[Page 1372]

Attached for your information is a telegram2 from three members of the Andersen subcommittee of the House Appropriations Committee opposing aid to Israel until it complies with UN directives.

In this connection, you may be interested to know that no economic aid funds have been made available to Israel so far during this fiscal year. The first allocation of funds was just being made when word was received that the Israelis were unilaterally diverting the Jordan River in the demilitarized zone at Banat Yaacov. We informed the Israel Ambassador on September 18 that we would not release any funds until the Banat Yaacov matter was clarified, as we did not want our assistance to coincide with an Israeli action which might result in hostilities.

Later, the Chief of Staff of the UN Truce Supervisory Organization requested the Israel Government to cease its work on the diversion of Jordan River waters. Rather than comply, the Israel Government speeded up construction on the diversion dam. We thereupon told the Israelis that we would not feel justified in releasing aid until they had complied with the UN decision, and that cessation of work after completion of the dam would not, in our view, constitute compliance.

The matter has been further complicated by the recent attack by Israeli forces on Jordan frontier villages. In concert with the UK and France, we have taken the question to the Security Council of the United Nations.

We do not plan to authorize release of any economic aid funds to Israel until these issues have been resolved to our satisfaction.

Walter B. Smith
  1. The memorandum was initialed by President Eisenhower.
  2. The telegram, addressed to the President, was sent as telegram 643 from the Embassy at New Delhi on Oct. 18 at 9 a.m. It reads as follows:

    “Our recent on-the-spot investigation of the Arab-Israel situation leads us to the unanimous conclusion that our government should immediately cease all aid to Israel until said state takes appropriate action to comply with United Nations directives and resolutions. We are convinced that continued economic support of Israel in the face of the reported acts of aggression and other flagrant violations of United Nations directives and recommendations has led to serious deterioration of not only Arab-American relations but also our relations with the entire Moslem world. Signed H. Cal Andersen, chairman Ben F. Jensen, Oakley Hunter.” (684A.86/10–1853)