ISRAEL


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will continue use its best efforts induce Israel accept return substantial
number and urge early commencement repatriation activities.
  USG hopes Egypt will use its great influence in Arab world to urge
Arab states adopt cooperative attitude towards this urgent problem,
as important means contributing to its early solution.
                                                         ACHESO 

501.BBý Palestine/5-1949: Telegram
       The Secretary of State to the Legation in Switzerland1l

CONFIDENTIAL                    WASHINGTON, May 19, 1949-47 p. m
  655. For Ethridge. Israeli Amb Elath, discussing Arab refugees
May 19 with McGhee, stated his Govt is in full agreement with USG
that both repatriation and resettlement are required for solution of
problem. He stated, however, that Israel not in position define number
to be repatriated prior (1) formal conclusion peace and (2) assurances
that plans have been made for resettlement fixed number, with neces-
sary financing. If Israel repatriated portion and remainder were not
resettled, security problem would be aggravated rather than relieved,
and remainder Arabs wld insist on repatriation as well.
  McGhee pointed out we consider repatriation substantial number,
not merely token number, required to obtain favorable atmosphere
for Arab cooperation in resettlement remainder, and to reduce prob-
lem to number capable assimilation on self-sustaining basis in Arab
states within reasonable period. Only on basis agreement repatriation,
and resettlement adequate numbers cld PCC formulate plan for re-
settlement. It is obvious that USG, in responding to any request from,
PCC or UN, cld not agree extend assistance in support plan which it,
considers unworkable, and we consider resettlement number approach-
ing 700,000 an unworkable plan.
   McGhee agreed with Elath that problem was three-sided consisting
 agreement by Israel repatriation given number, agreement by Arabsg
 resettlement given number, and formulation resettlement plan involv-
 ing outside assistance. McGhee stated that agreement re repatriation
 appeared necessary first step in overcoming present impasse, but to,
 be realistic considered it possible that agreement on all three pointsg
 might be reached simultaneously at Lausanne. US considers that
 responsibility for problem rests with UN and PCC. Comment:-.-.. it is
 believed Elath sought to convey that Israel prepared talk numbers for
 repatriation as soon as assurance received that Arabs wld agree re-
 settlement remainder and outside financial assistance forthcoming.
 Financial assistance repatriation not discussed.
                                                          ATl a t o dSO.