411. Editorial Note
The following exchange concerning the Arab refugee problem took place at the Secretary’s Staff Meeting on November 25:
“There was a discussion of the need for, and the possible early appearance of, a serious proposal from the Israeli looking toward a settlement of the refugee problem, including a willingness to admit refugees into Israel or compensate them. The Secretary referred to his earlier-stated view that the possible Export-Import Bank loan to Israel might usefully be tied into the settlement of the problem. It was noted that Herzog, Counselor of the Israeli Embassy, is approaching a lot of officials and non-officials. Rountree said that the Israeli have embarked on a studied selling campaign to get across the following ideas: a) that NATO should guarantee Israeli security; b) that the US should unilaterally make a declaration on Israeli security; c) the US should give large-scale economic assistance to Israel which in turn would permit Israel to purchase defense items; d) interest should be stimulated [Page 826] in economic development in Israel which would help to compensate for the refugees.” (Informal notes; Department of State, Secretary’s Staff Meetings: Lot 63 D 75)