784A.00/12–2750

Memorandum of Conversation, by the Director of the Office of Near Eastern Affairs (Jones)

secret

Subject: Difficult Position of Israel.

Participants: Dr. Moshe Keren, Counselor, Embassy of Israel
Mr. George McGhee, NEA
Mr. Lewis Jones, NE

Discussion:

At the conclusion of a briefing on Korea by Mr. Merchant of FE, Dr. Keren mentioned the great concern of Israel in the world situation since Israel is in a particularly vulnerable position with regards to food, oil, etc.

Mr. McGhee said that the vulnerability of Israel is very much on our minds at this time and he thought that Israel should consider carefully what concessions it might make to the Arab States in order to have the Arab economic blockade lifted. The Arab states could, if they would, supply Israel with oil and much food.

Dr. Keren said that Israel had recently offered some concessions with regard to the Arab refugees but that he was “not hopeful” with regard to a general settlement with the Arabs.

Mr. McGhee said that the bare facts of the situation are that Israel has possession of the territory in dispute and that the Arabs have the refugees. Consequently, logic indicates that Israel will have to make the concessions. The US has always thought Israel has the capability of making concessions both with regard to the refugees and territory. The only concessions which the Arabs can make are to agree to a peace settlement and to lift the blockade.

Dr. Keren expressed doubt that Israel could go further than it has already done with regard to the Arabs. Mr. McGhee replied that, if this were true, Israel would be well-advised to “weigh the consequences.”