320.2AA/7–2850: Telegram

The Secretary of State to Ambassador John B. Blandford, at Beirut

confidential

85. Unrap 43. Re Rapun 43.1 Present thinking on your numbered questions in reftel as fols:

1.
Discussion with Arab Govt[s] on multilateral technical assistance shld at this time fol latest news from Lake Success.2 Dept cannot now give you detailed info on bilateral Point IV programs, although hope shortly cable figures of tentative country dol allotments for planning purposes, as soon as appropriation firm.
Discussions with govts on resettlement of refugees not desiring repatriation shld fol polit possibilities of the moment, bearing in mind explosive qualities of this subject. You shld be guided by corns on present thinking in Arab states.
Perhaps more emphasis cld be given to works in Jordan which wld create absorptive capacity rather than roads in presently settled areas and afforestation projects which do not immed create such capacity. Good relations that PEA may be able to foster with Syrian Govt may enable PRA’s continuing studies of resettlement projects in Syria to bear fruit.
2.
Dept sees no objection to your initiating gen discussions with Arab League reps and suggests you get in touch with Azzam Pasha through Emb Cairo.3 These discussions wld necessarily be exploratory and you can judge best the desirability of continuing contact. Ur previous comment on encouraging AL officials to initiate statistical and regional econ studies seems to have considerable possibilities. Whether you have discussions alone or jointly with Director and Comm. colleagues is matter best left to your own judgment.
3.
Dept now thinks your report might cover fol gen lines:
1.
Appraisal of progress using Clapp report recommendations as criterion.
2.
Recommendations on continuation of direct relief. True that Clapp left initiative to Arab states on this but it seems to Dept that report and subsequently the GA will have to face the issue. PEA alone can determine necessity.
3.
Recommendations on future of PRA:
a.
Continuation
b.
If so, possible changes in terms of reference to broaden scope.
c.
Extension of foreign aid necessary with justification.
d.
Role that banks, govts, and non-governmental agencies might play in econ development of countries in the gen area of Palestine.

FYI Dept expects that PRA will look to future re economic rehabilitation and development and recommend further steps to be taken, whether through PRA machinery or otherwise. You will recall that before Clapp went to NE the Dept was thinking, with executive approval, in terms of 3-year program involving US grant funds larger on annual basis than 1951 US appropriation PRA to match equally other sources of funds including loans. Dept would like your appraisal possibility re-initiation of this approach, not only in terms of refugees, but also of economic development NE which in turn cld be related to building strength and stability in the NE and determination and means to resist invasions USSR, and orientation toward US–UK.

With this in mind you may wish to submit a separate report to US Govt on advisability continuation of PEA in contrast to bilateral action to be taken by US in furtherance of plans of economic development or both. Your views and those of corns on advantages and disadvantages of divorcing the refugee problem from economic development and points of view of local governments thereon will be studied here in the light of possibilities of obtaining further funds for fiscal year 1952. End FYI.

[Here follows the remainder of the telegram dealing with the possible return of Ambassador Blandford to the United States and various technical questions.]

Acheson
  1. Identified also as telegram 62, July 28, from Beirut, not printed.
  2. Meeting place of the Security Council.
  3. The Department of State informed Embassy Brussels on August 2, that the Arab contribution to PRA would amount to $6,000,000 (airgram 39, 320.2AA/8–250).