S/PRS files, lot 77 D 9
No. 711
Department of State Press
Release
Aid to Israel
Secretary of State John Foster Dulles issued the following statement today concerning economic aid to Israel:
I have today recommended to President Eisenhower that a grant of economic aid be made to Israel in the sum of approximately $26 million in respect of the first six months of the current fiscal year. This is the amount which previously had been tentatively earmarked for allocation to Israel under the Mutual Security Act of 1953, in agreement with Mr. Stassen, Director of the Foreign Operations Administration.
Definitive action in this matter was deferred because of differences between the State of Israel and the United Nations Truce Supervision Organization relating to a Jordan River water diversion project. This work, recently undertaken by Israel, is in part in the demilitarized zone between Israel and Syria. On September 23, General Vagn Bennike, Chief of Staff of the Truce Supervision Organization, requested that Israel should cease work on this project pending some arrangement which would insure its conformity with the Syria-Israel Armistice Agreement. The State of Israel did not meet General Bennike’s request. It seemed that, if the United States granted economic aid under these circumstances, it would tend to undermine the authority of the United Nations Truce Supervision Organization. That authority is indispensable to the prevention of general hostilities and chaos in the area.
Yesterday, in the United Nations, the spokesman for the Government of Israel, in response to a request from the President of the Security Council, agreed that the work started by Israel in the demilitarized zone would be suspended pending urgent examination of the question by the Council. The Security Council thereupon, by unanimous resolution,1 took jurisdiction of the matter and confirmed the suspension of work on the project. The spokesman for the Government of Israel also stated to the Council that it was the policy of his Government that it would in the future cooperate with the Council’s efforts to reach a solution, taking account of all legitimate interests.
[Page 1391]The policy of the United States to support the United Nations Truce Supervision Organization in this matter has thus been realized, and the impediment to the present grant of economic aid to Israel has been removed.
Programs for economic aid to other states of the Near East are in an advanced state of formulation, and it is expected that some of them can shortly be announced.