357.AC/7–751: Telegram

The Secretary of State to the United States Representative on the Palestine Conciliation Commission (Palmer), at Jerusalem’1

secret

4. Unpal 276. For Palmer.

1. Dept appreciates your reply (Palun 409)2 to Unpal 2703 and [Page 754] understands background what appears here more pessimistic outlook than entirely justified. Dept had hoped and still believes at least parts program outlined Unpal 270 can be effectively adapted to PCC’s frustrating situation. Dept realizes PCC’s lack positive accomplishment during two and one-half years including failure UN consider its Jerusalem plan, failure its efforts bring parties into direct contact, and failure obtain support any parties for its suggestions on repatriation, territorial adjustments, compensation or release of blocked accounts made unavoidable present feeling stalemate and equally strong feeling need for effective new procedures.

2. Dept feels, although subject matter of Unpal 270 will not be new to PCC, Unpal 270 contains basis for attempting new procedures. Dept believes were PCC to pursue actively most promising points contained therein it cld best do so by assuming role of commission of mediation as Arab States have repeatedly requested. Continuing informal and individual discussions various points wld probably not produce more results than PCC’s similar efforts during past 6 months. On other hand PCC action along lines Dept suggestions wld in our opinion require a more direct and formal approach of mediation within framework conference between Israel and PCC on one hand and reps Arab States and PCC on other. PCC wld decide place for such conference taking into account effective organization wishes parties; Dept preferences are (1) Istanbul; (2) Crete or Rhodes; (3) Cyprus.

3. We feel this conference shld be for purpose discussing and suggesting solutions for specific problems such as those raised in Unpal 270 and shld not be presented as a “Peace Conference.” PCC wld not be expected suggest at outset direct negots between Israel and Arab States but in course of conference some questions might be advanced to point where direct contacts cld be established. Dept wld be prepared give all appropriate diplomatic support for PCC convening such conference and assuming mediation role and, where necessary and feasible, for successful solution specific problems.

4. For your guidance and within framework foregoing, Dept reviews below principal items Unpal 270.

A. Israel treatment Arab residents and repatriation. After ascertaining facts either independently or through Fr, Turk and US diplomatic reps Tel Aviv this subject might be taken up in connection with negots with Israel for repatriation of appreciable number of refugees under para 4 part 2 of ConGen doc 17 Rev 1 as reported to Dept, a key possibly being to find those classes of refugees whose repatriation cld be considered by Israel as beneficial to its economy. In addition PCC might negot with Israel return of selected groups of property owners for residence and resumption of control of their property thus obviating some of the larger compensation claims.

B. Compensation. As indicated in para 3 part 2 of Unpal 270 an agreement between Israel and Arab States on principle of compensation [Page 755] and approx total amount, per PCC ref doc (ConGen Doc 17 Rev 1), wld greatly advance possibilities ultimate payment compensation and might create disposition among UN” Members provide financial means by which Israel might pay compensation. Shld PCC as result negots be able obtain announcement by Israel its agreement to practical proposals and Arab States willingness accept such proposals, financial aspects of problem might prove less difficult. Likewise announcement Israel’s agreement proposals for practical solution compensation problem might give PCC talking point for Arab States’ relaxation trade and other restrictions, thus assisting Israel meet compensation obligations. Exploring such questions within framework conference on basis of mutual benefits might any case produce hitherto unexplored possibilities, particularly if Israel in fact more ready to adopt “unorthodox” solutions.

C. Possible Polit Settlement. Dept believes any opportunity shld be seized encourage and stimulate discussion matters arising under armistice agreement with view to revision or modification agreements by parties. In addition suggestions contained in para 4 Unpal 270 Dept feels there are other important subjects for negot such as unsolved problems Jerusalem area, use Jordan waters.

5. PCC efforts will have to be coordinated with extensive diplomatic preparation by Fr, Turk and US FonOffs and with such UK aid as wld be helpful. Likewise Dept wld concert with Fr and Turks in clarifying respective roles Chief of Staff TSO and PCC in negots relating settlement issues arising under armistice agreements. Dept feels agreement reached on any problem arising out of armistice agreements as result PCC efforts wld encourage possibilities undertaking at later stage larger revision armistice agreements either through PCC negots or negots by Chief of Staff.

6. Dept believes above provides basis for PCC’s deciding assume more positive role. Barco has reported fully on PCC’s activities and views. On his return he will be able discuss with you immediate steps contemplated necessary to accomplish these objectives. Your comments and suggestions requested. Dept believes you will wish defer discussion with your colleagues and secretariat until Barco’s return. Maximum desired effect announcement new effort by PCC wld require careful coordination and preparation which might be jeopardized by premature publicity.

7. Fol is suggested timetable:

A.
You and Barco meet Geneva approx July 20.
B.
PCC reconvenes about July 25 to agree on conference plan, discuss agenda, fix venue, opening and terminal dates.
C.
PCC members report to respective FonOffs before Aug 5.
D.
Aras will extend PCC’s invitation to Arab States and Israel for conference at Istanbul. Target date Sept 1.
E.
FonOff’s will urge parties participate with highest possible representation.
F.
Report fol conference for UNGA cld be written either in Istanbul or Paris.

Acheson
  1. Drafted by Messrs. Barco and Ludlow; cleared with Mr. Hickerson and with NEA and NE; authorized for transmission by Mr. Wainhouse; signed for the Secretary by Mr. McGhee. Repeated by air to the Arab capitals, Tel Aviv, London, Paris, and Ankara.
  2. Dated June 23, p. 728.
  3. Dated June 12, p. 714.