320.2AA/11–2850: Telegram

The Secretary of State to the Embassy in Israel

confidential

226. Discussions have been underway for some time with Israeli Del to GA on subj Israel contrib to funds required by UNRWA.

This Agency is short by about $12 million of total required to meet $54,900,000 budget for period ending June 30, 1951 and requires $50,000,000 for fiscal 1952. Understand Blandford has advised you on gen nature present proposals.

Israel has supported program in GA and has contrib $50,000 for current period as token.

Dept considers it opportune time seek financial support from Israel in substantial terms. Dept thinking in terms millions. Eban’s acknowledgment in GA of Israel’s obligation to pay compensation to refugees may be helpful line of approach, as payments toward compensation claims in bloc cld be considered pro tanto discharge of Israel’s obligation, and refugees accepting offer of resettlement in Arab States wld necessarily waive claims for compensation up to value of property each recd in new holdings finished pursuant to reintegration plans.

Info here is that Kaplan1 has subj of contrib under study at present. Dept hopeful you can expedite favorable decision of Israeli Govt so that gap in current budget can be met and realistic basis estab for negots 1952 program with US UK and others.

Acheson
  1. Eliezer Kaplan, Israeli Minister of Finance.