Office of the Historian

446. Memorandum From the Director of the International Cooperation Administration (Hollister) to the Secretary of State1

Washington, October 31, 1956.

According to my understanding of the policy of the United States in connection with the invasion of Egypt by Israel armed forces, I have issued instructions to cease all aid to Israel at once. I have requested the Department of Commerce to refuse export licenses for any shipments financed by the International Cooperation Administration, and am notifying all banks with which we have financing arrangements for procurement for Israel to issue no more letters of credit. Where possible we will stop shipment of goods being procured outside the United States, although in some cases this is not in our control.

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No transfers of funds to Israel accounts or releases of Israel currency will be made.

No more Israel trainees will be called up, although we will continue to support Israel trainees already in this country.

Let me call your attention to the fact that the Department of Agriculture has shipments scheduled for Israel under a PL 480 contract, and that the Department of Defense is currently shipping various military items. You will probably wish to request these departments to take action with respect to such shipments.

John B. Hollister

  1. Source: Department of State, Central Files, 611.84A/10–3156. Secret. A note attached to the source text from Macomber to Murphy reads in part: “In reading the memorandum, the Secretary expressed some surprise at the rapidity with which this action was being taken and wondered whether it had been done in consultation with the Department and if not, whether we in fact agree with the action.”

    Copies of Hollister’s memorandum are in Washington National Records Center, ICA Director’s File: FRC 61 A 32, Box 309, Israel. A note attached to one copy bears a handwritten notation by the Executive Secretary of ICA, John W. McDonald, Jr., indicating that Hollister’s memorandum had been cancelled and that all copies circulated within ICA were to be recalled. Handwritten notes by McDonald of meetings held on October 30 and November 1 at ICA on this subject are also attached.

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