ISRAEL


689


refugees in Syria and that the small cash dole and foodstuffs supplied
to them had resulted in "utter demoralization and impoverishment"
of practically all of them. Damascus noted also that the "presence of
refugees in Syria has constituted economic burden primarily on com-
munities rather than on govt which as early as August, 1948 practically
abandoned its relief expenditures as unsupportable budgetary drain"
(airgram 30).
  Baghdad, on February 5 and 7 noted the presence in Iraq of 5,000
refugees whose maintenance was possible despite the severe economic
depression. However, the "Absence demand for labor makes impossible
absorb any additional refugees now" (telegram 47 and airgram 54).
  All messages cited above are filed under 501.MA Palestine, with the
dates of the messages serving as dated enclosures, except for airgrams
35 from Beirut and 54 from Baghdad, which are filed under 501.BB
Palestine.

501.BB Palestine/i-2349: Telegram
     The. Ambassador in Greece (Grady) to the Secretary of State

SECRET     NIACT                  ATHENS, January 23, 1949-1 a. m.
  152. Palun 7. Under Bunche's instructions, John Reedman, senior
political adviser [Acting] Mediator's staff, arrived Athens from
Rhodes afternoon January 22 for purpose confidentially acquainting
USDel progress Egyptian-Israeli negotiations.
   Egyptians and Israelis have agreed on preamble to armistice agree-
 ment and separately on Faluja pocket (Unpal 7).1
   Differences on other points are as follows:
   Israeli position: (1) Eytan informally proposed re coastal strip
effective withdrawal Egyptian forces leaving such defense units as
are agreed upon for administration and maintenance police control;
(2) Israelis will accept principle withdrawal Israeli mobile and strik-
ing iforces from area in northwest Negev as yet undefined which both
sides would consider as threat to other. Bunche believes area might
approximate that south of October 14 line; (;3) Israelis will not
agree to any armistice line which would result in advance Egyptian
forces from present positions; (4) Israelis will not agree to return
Egyptians in any form to Bir Asluj; (5) Israelis will not negotiate
on basis of Egyptian civil governor in Beersheba; (6) Israelis hold
firm position to retain El Auja but might not prevent agreement on
this point alone. Israelis very probably would not permit Egyptians
to return.

   'Also identified as telegram 92, January 21, 5 p. m., to Athens, not printed:
 it repeated the texts of telegrams 70, 71, and 72, all dated January 19
and printed
 ante, pp. 685 and 686 (50I.BB Palestine/1-1949).