867N.01/7–2848: Telegram
The Consul General at Jerusalem (Macdonald) to the Secretary of State
1132. Delay in demilitarizing Jerusalem is leading to critical situation and unless positive action taken within few days demilitarization may be impossible.
Although Jews express willingness demilitarize they actually resent it for fear it will lead to internationalization. From private conversations during last few days increasing opposition by Jews to demilitarization is very evident and excuse given is alleged refusal of Arabs to agree but press reports state Arabs have agreed.
It is reported a military governor will be appointed for Jerusalem. If true it will complicate question demilitarization and will encourage Jews considerably in their demands to include Jerusalem as part of Israel. Yesterday newly-appointed district attorney Jerusalem and group prominent Jews gave me long argument that inasmuch as Jerusalem captured by Jewish forces it should be part of Israel.
Current reports of expected trouble between Haganah and IZL forces presents gravest threat to demilitarization Jerusalem (see mytel 1125, July 261).
If hostilities between these two forces break out Government Israel will insist remaining Jerusalem on grounds protecting it from dissident forces who they will allege oppose Israel’s efforts cooperate with UN. In such eventuality Jewish state would likely proclaim Jerusalem part Israel and it is unlikely such claim would be relinquished.
Should this unfortunate delay result in failure demilitarize Jerusalem and encourage Israel Government issue official statement claiming [Page 1251] Jerusalem part Israel, Arabs will be given just cause to accuse UN of assisting Jews through truce (see mytel 1097, July 192).
In my opinion Bernadotte made serious error by not visiting Jerusalem on recent trip. Truce Commission has had no communication or instructions from Bernadotte or Security Council except outline for demilitarization Jerusalem since truce went into effect.