ISRAEL                         1177

Governments directly concerned and looks forward to an early
settlement which will relieve the peoples of all communities in and
around Palestine of the misery and violence which has been their lot
during recent years."
  Further comment will follow.5
                                                          AcHESON

   This telegram was repeated to Bern for the American Delegation at Lausanne.
Thomas E. Bromley, First Secretary of the British Embassy, called on Gordon
H. Mattison, Chief of the Division of Near Eastern Affairs, on July 5 to
inquire
on behalf of the Foreign Office whether the United States had modified its
recent approach to Israel regarding the refugee question and territorial
com-
pensation. Mr. Mattison informed Mr. Bromley that the second communication
to the Israeli Government "did not represent any change in our approach
to the
subject. The reply had been designed to clear up .certain Israeli misconceptions,
as well as to reiterate our point of view." (memorandum of conversation,
by
Mr. Mattison, 867N.48/7-549)

867N.01/6-2549
Memorandum     of Conversation, by the Deputy Under Secretary of
                          State (Rusk-)

TOP SECRET                            [WASHINGTON,] June 25, 1949.
Participants: Mr. -Rusk, Deputy Under Secretary of State
               Mr. Uriel Heyd, Israeli Charg6 d'Affairs a.id
               Mr. Mattison, NE
   I handed the attached aide-memoire to Mr. Heyd after orally sum-
marizing its contents and reading verbatim the last two paragraphs
for emphasis.2
   I also mentioned that it looked to us as if the Lausanne Conference
 was going to recess for a few  weeks. This Government was most
 anxious that the recess period be used to the utmost advantage towards
 developing a new approach towards the issues which are still out-
 standing.
   In this connection we felt that the Gaza strip proposal was perhaps
the key which would unlock the whole problem. For this reason we
were most anxious that the Egyptians and Israelis get together and
see what could be worked out. I inquired whether Mr. Eban would
continue to remain in New York, in the event that it should prove
advantageous for conversations to be held between the Israelis and
Egyptians there. Mr. Heyd replied that Mr. Eban planned to remain
in the United States until the return of Ambassador Elath. However,
if it were a matter of urgency the Ambassador would return im-
mediately.

  'Drafted by Mr. Mattison.
  SNote that telegram 398, supra, states that Mr. Rusk handed the Aide-MlrnoirG
  to the Israeli Charge on June 24.