Sharett then stated particular concern of Israel over resumption
work at potash plant and Rutenberg.’ Prime Minister countered by
stating that Israel would have to agree to certain ‘Transjordan de-
‘mands before agreement could be reached on potash and Rutenberg. —

‘Prime Minister then inquired whether Israel would agree to par-
tition lines as basis for final settlement. Sharett stated that Arabs had
never accepted partition and therefore it was now part of history. —

At this point Prime Minister, who seemed to think Sharett had
adopted somewhat “superior attitude” pointed out that he had never
wanted war but that Jews through breach truce in Jerusalem, Deir
Yassin and other incidents had forced him into it. Consequently
Sharett had no right to talk to him as he would to Egyptians or
others. Transjordan was entirely willing to agree to most of Israeli
demands such as Latrun and Mt. Scopus but could only do so if
Israel would agree to Transjordan demands. He said that most im-
portant thing was to arrive at peace settlement which was acceptable
to people rather than to official bodies and which would guarantee
future relationships. He did not want war and way to avoid it was
firm and reasonable settlement. He pointed out Transjordan desire
for outlet to sea and its concern re refugees. He was willing consider
Latrun and Scopus situation if Israel would consider such matters
as return Arab quarters Jerusalem.

- Sharett replied that Israel was in agreement re peace and was also
in agreement with Transjordan on other matters. Said that Israel
agreed with Transjordan re undesirability internationalization Jeru-
salem and also agreed to Transjordan having outlet to sea. Re latter
point stated Israel would give Transjordan free port at Haifa. .

 

3The Rutenberg Hydro-Hlectric Works were located at Naharim at the junction

of the Jordan and Yarmuk Rivers. Chargé Stabler, on July 11, advised the
Department of his recent visit to the Works, stating “It is understood that prior
to the hostilities in May 1948, the Jordan Government and the J ewish Agency.
reached some form of agreement concerning the protection of the Hydro-Electric

works. It is possible that the Jordan Government would have been able to observe
this agreement if it had not been for the arrival of the Iraqi forces. When the
Iraqi forces came into the area, the Israelis departed, but only after blowing
up certain of the dynamos in the main dynamo building. Later the Iraqi finished
the job, even removing numerous machines. ... The area has been under the
control of the Arab Legion since the departure of the Iraqi troops three months
ago. All looting and damage has been stopped by the Legion and the area is
under guard. .. . It is quite obvious that the Rutenberg Hydro-Electrie works
can only be operated again by an agreement between Jordan and Israel. Jordan,
on its part, is incapable of operating such a works by itself and, moreover, the
Israelis can control the flow of the Jordan. Israel, on the other hand, cannot
commence operations of the works as all the buildings are in Jordan territory.
In addition, Jordan can control the flow of the Yarmuk River. It would appear
that it would take some time yet to reach an agreement on the operation of the
Rutenberg Hydro-Electrie Works as it remains, along with the Dead Sea Potash
Works, an important bargaining point for Jordan.” (Despatch 65 from Amman,
890i.6463/7—-1149)

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