Problem: Current developments at the UN regarding Palestine.
   Action required: None
   Action assigned to: ANE
   Mr. Sharett called on me this afternoon for the purpose of paying
 his respects during his current visit to the United States to attend the
 present session of the General Assembly and for the purpose of making
 known Israeli views on certain aspects of the Palestine problem.
   Mr. Sharett informed me that it was a great relief for him to leave
 the present nightmare at Lake Success for the calm of Washington,
 He indicated that an "unholy alliance" of Arab states, Latin American
 states, the USSR and its satellites had brought about, in subcommittee
 of the ad hoc political committee, the adoption of an amended Austral-
 ian resolution providing for rigid internationalization in the Jeru-
 salem area. Mr. Sharett said that the ghost of November 29, 1947 2 was
 "stalking the scene" and that many representatives in the United
 Nations were bowing down before it.
   I asked Mr. Sharett if ,any progress had been made in recently
reported conversations between representatives of Israel and repre-
sentatives of the Vatican in Rome. Mr. Sharett said he could tell me
confidentially that while it should be understood that the Vatican
did not approve of present Israel proposals regarding Jerusalem, a
message had been sent to him to the effect that he continue his present
line and that conversations could be continued later. Mr. Sharett said
that this message meant the Vatican was not displeased with the
manner in which the Israeli Government was conducting its relations
with Catholic representatives within Israel and that, as the Vatican
did not expect any action at the present session of the General As-
sembly, representatives of Israelzand the Vatican could continue their
current talks thereafter. Mr. Sharett believed that the Vatican was
divided regarding the question of full internationalization for the
Jerusalem  area, but that it would maintain its present position of
support for full internationalization pending action by the GA.
  I asked Mr. Sharett what the.views of the Israeli Government were
with respect to Jerusalem. He informed me that his Government con-
sidered an agreement between the United Nations and Israel with
respect to the Holy Places through the medium of a UN commissioner
appeared to be adequate and said that arrangements of this character
would make it possible for Israel and Jordan to take care of the prac-
tical affairs of everyday life in Jerusalem.
  I observed that when I had last seen Mr. Sharett in the spring of
this year 3 I had pointed out to him that we envisaged, in the light
  2'The date of the resolution by the General Assembly which called for the
partition of Palestine and ,the establishment of Jerusalem as a corpus separatum.
  See Secretary Acheson's memorandum of conversation of April 5, p. 890.
     501-887--77-97


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