patriation of those refugees desiring to return to their homes land live
at peace, and in view of the impossibility of resettling the total number
of refugees in the Arab States within a reasonable period of time and
at a reasonable cost, this Government has recently made representa-
tions to the Israeli Government urging its agreement to repatriation,
of a subtsantial number of refugees and the immediate commencement
of repatriation of some, portion thereof. Despite the emphasis upon
repatriation in the resolution of December 11, we have urged upon
the Arabs the necessity for their agreement to the resettlement in the
Arab States of a substantial portion of the-refugees, in view of the fact
that the return to their homes of all the refugees desiring to go back
would be difficult because of the continuing arrival in Israel of large
numbers of European displaced persons.
   Our representations on these two questions have thus far met with no
success with the Israeli Government. Israeli officials have in fact in-
formed our representatives in Palestine that they intend to bring about
a change in the position of the United States Government on the above
points, through means available to them in the United States. There
are also indications that the Israelis are prepared to use the implied
threat of force to obtain the additional territory which they desire in
Palestine.
3. Efforts of the Palestine Conciliation Conimmission
   The Conciliation Commission has vigorously endeavored to per-
suade the Israelis and the Arabs to withdraw from their extreme posi-
tions concerning a final Palestine settlement. With respect to refugees,
the Commission has succeeded in persuading the Arabs to give up their
previous insistence upon repatriation as a prerequisite to negotiations
on other outstanding issues, and in persuading certain of the Arab
States to give favorable consideration to resettlement of a portion of
the refugees. The Commission has failed to obtain any concessions
from the Israelis on a territorial settlement or the refugee question.
It is now the considered opinion of Mr. Ethridge that the conference
at Lausanne is likely to break up when the Arabs learn of the present
Israeli position toward 'a final settlement and that there will exist no
possibility of peace on any basis heretofore envisioned by the United
States Government unless Israel modifies its demands. Mr. Ethridge
believes that such modification is unlikely.
4. United States Interest
   The United States interest in the security and stability of the Near
 East has been a principal motivation of our efforts, both in the United
 Nations and on the diplomatic level, to urge both parties to the Pales-
 tine dispute to take measures leading to a sound and equitable peace.
 The strategic interests of the United States demand early termination


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