16. Telegram From the Department of State to the Embassy in Israel1

446. For Ambassador and White. Dept currently engaged in formulating proposals for consideration in further US–UK discussions re Arab-Israel problem. Among topics are refugee repatriation, compensation, resettlement. Your considered replies to fol questions wld be most helpful:

1.
Assumption has been postulated Israel can be persuaded, in context general settlement, accept between fifty and seventy-five thousand Arab refugees for settlement in Israel (possibly up to one hundred fifty thousand if Gaza strip ceded to Israel). Such refugees could not be “repatriated” in sense returning their former homes. However they might be usefully settled in parts Negev and on terraced hillsides in Northern Israel. Cld you assist us in pinpointing actual sites such agricultural resettlement? Any opportunities for refugees some of whom skilled find urban livelihoods?
2.
Proposal made Israel wld provide land for returning refugees with UNRWA providing funds develop such land. Do you think this feasible? What wld be realistic figure for UNRWA contribution to Israel on a per family basis? Wld UNRWA be safe in turning money over to GOI with accounting on post audit basis only?
3.
Wld it be practical or feasible urge Israel extend special guarantees re civil and other rights to returning Arabs?
4.
Wld appreciate Embs further thoughts re amount nature and timing of GOI contributions to refugee compensation fund. On assumption total of $300 million to be paid out over five year period what cld Israel economy contribute by way of goods readily translatable into cash?

Mark reply top secret–alpha–limit distribution. Dept. emphasizes necessity restricting knowledge contents this telegram to Ambassador and White. Would appreciate reply by Feb. 14.

Dulles
  1. Source: Department of State, Central Files, 684A.86/2–955. Top Secret; Alpha; Limit Distribution. Drafted by Bergus and approved by Jernegan, who signed for Dulles.