706            FOREIGN RELATIONS, .1949, VOLUME V]

  Epstein reiterated PGI position that armistice should be based on
present military lines with exception above arrangement El Auja and
Faluja, Egypt to remain in occupation Gaza-Rafah coastal strip.
  Epstein said proposal concerning El Auja had been decided in PGI
Cabinet meeting and that Cabinet had also decided formally request
USG's good offices to attempt persuade Egyptians come to agree-
ment this basis. Said despite deadlock PGI would not withdraw
negotiators from Rhodes.
  Pls call immed upon FonMin and give him -above info. Add that
USG earnestly hopes Egypt will see way clear to reaching armistice
agreement with 'PGI. Point out that proposed UN supervision 'Israeli
outpost El Auja seems offer assurance El Auja will not be menace
Egyipt nor Egyptian lines communication. Add that fact that Israeli
proposal is result Cabinet decision and that PGI has formally re-
quested US good offices seems indicate proposal sincere. State USG
believes substantial progress already made toward Israeli-Egyptian
armistice agreement and hopes both sides will make every effort re-
move final obstacles now standing in way..
  Dept made representation Egypt Amb Jan 28 along same lines.
Amb pointed out P0I made no mentioný of compliance with ,SC resolu-
tion Nov 4. Made personal suggestion that Egyptian observers might
be stationed at proposed Israeli outpost E1 Auja in addition UN
reps. Dept stated opinion this suggestion merited serious considera-
tion Rhodes but pointed out proposed Israeli-Egyptian:: armistice
comm would be in position to maintain surveillance El Auja outpost.
Amb reporting Dept's representation to Cairo,
  For your info only Dept this morning also reed request from SYG
requesting it -endeavor persuade both Govts break deadlock.'.
                                                            ACHESON
  'This telegram was repeated to Tel Aviv for the American Delegation to
the
Palestine Conciliation Commission and to Jerusalem. It was transmitted sepa-
rately to Acting Mediator Bunche, at Rhodes, in an unnumbered telegram of
January 28 and to London in telegram 321 the same day (501.BB Palestine/
1-2849). The message to London requested the Embassy to "Pls. immed
convey
sense above to FonOff and state USG hopes UKG will make particular effort
Cairo attempt persuade Egyptians reach compromise with Israelis at Rhodes.
Add UISG believes Israeli proposal could serve as effective basis for armistice
without reference to dispositions final peace settlement, and, that fact
that
proposal is result PGI Cabinet decision and that PGI has formally requested
US
good offices this basis seems indicate proposal sincere."
  Charg6 Patterson called on Prime Minister Ibrahim Abdel Hadi on January
29
and gave him the substance of the Department's telegram. At the conclusion
of the presentation, Hadi Pasha "expressed inability consider -El Auja
sug-
gestion or other points raised by Israeli pending demonstration of Israeli
good
faith through prior unconditional release Faluja garrison ..." The Prime
Minister left the impression with the Chargei that they "Egyptians anxious
con-
tinue Rhodes conversations but felt that token evidence of good faith by
Israelis
and face-saving device represented by unconditional release of Faluja garrison
must be insisted upon as prerequisite to renewal of: serious conversations
at
Rhodes." (telegram 116, January 29, 4 p. in., from Cairo, 501.BB Palestine!