136 FOREIGN. RELATIONS, 1950, VOLUME I

and diplomatic relations normalized. Perhaps this will soon be possible.
This will depend largely on our European allies, whose hand we don’t
wish to force. But this does not mean we would then rush to other
extreme and shower Franco with loans or welcome him as ally. We
must insist on retaining dignity and reserve of our position toward
those who repudiate ideals of government we happen, to. believe in.

. Mediterranean and Near East ae |

Area has thus far survived # eurprisingy well drastic readjus ustments
of post-hostilities period. | po :

Italian Colomes.”° - | a

Most of Italian colonies question has found solution in recent resolu
tions of U.N. Assembly. Solution not perfect, and presents some serious
problems of implementation. But it is better than no settlement at all,
and has at least virtue of not being vulnerable to attack as cynical
great power arrangement. which disregarded 1 ‘interests and nights: of
subject peoples. re :

Palestine. —

Initial phase of adjustment to establishment of Israel state has’ pr O-
ceeded thus far with less violence and trouble than many had feared.
This was due largely to patient and successful efforts of U.N., although
decisive Israeli military superiority played important part. Difficul-
ties are not over. Recent U.N. resolution calling for rigid interna-
tionalization of Jerusalem was mistake and is unacceptable to parties.
This will complicate difficult aap: of future of that city.

Arabs.

Working through U.N., we have been able to do something to allevi-
ate plight of Arab refugees, but, their problem by no means solved.
We are fortunate in having a program here which has the support of
both Jews and Arabs. Our part in financing this program will now
require Congressional consideration. Arabs remain resentful of Israeli
state and of our part in its establishment. But they have been impressed
by success of our policy in Greece, Turkey and Iran, and situation has
not yet led to Soviet exploitation in serious degree. _

India and Pakistan.”? )

On subcontinent, future course of developments still obscure. As of
today, Pakistanis seem to have better chance of coping with their
problems than Indians. India is bound shortly to run into serious
problems of economic backwardness, political ignorance and apathy,

 

20 Documentation on 'the disposition of the former Italian colonies - is s scheduled
for publication in volume Vv.

4 Documentation on ‘the Arab-Zionist controversy respecting Palestine is sched-
uled for publication tbid.

22 Documentation on United States efforts to regolve the dispute between India
and Pakistan over Kashmir is scheduled for publication ibid. =