University of Wisconsin Digital Collections
Link to University of Wisconsin Digital Collections
Link to University of Wisconsin Digital Collections
Foreign Relations of the United States

Page View

United States Department of State / Foreign relations of the United States, 1947. The Near East and Africa

Palestine,   pp. 999-1328 PDF (126.4 MB)

Page 1317

   Dept concerned possible food shortage Jerusalem. If present or
 future needs cannot be supplied in Palestine or from nearby countries,
 telegraph estimate needs from US and whether you desire establish
   d) No change contemplated in present US policy prohibiting export
 military supplies to Palestine and Arab States.
                           Editorial Note
   Mr. Eliezer Kaplan, Treasurer of the Jewish Agency, sent a letter to
 Mr. Henderson on December 22 in which he cited conversations he had
 had the previous week with officers of the State and Treasury Depart-
 ments and of the Export-Import Bank. He enclosed two memoranda
 setting forth various financial proposals of the Jewish Agency (867N.
   Mr. Merriam analyzed these proposals in a memorandum of Decem-
 ber 31 to Mr. Henderson, as follows: "In scope and purpose, the pro-
 gram calls for raising 11/4 billion dollars for a four-year project.calling
 for resettling 400,000 European and Asiatic Jews in the Jewish State,
 and for developing the country in a way to raise the Arab standard
 of living gradually to that of the Jews. The JA hopes to raise 3/, billion
 dollars from private sources and appeals to the U.S. Government to
 supply the balance of 1/2 billion dollars. Of the latter sum, the JA seeks
 an Eximbank loan of $75,000,000, leaving it to be implied that the
 remaining $425 billion [million] is to be supplied by a grant from
 the U.S. Government.
   "From the table of 'Funds Required for the Accomplishment of the
 Four-Year Plan' on page 3 of the memorandum, it is clear that
 expenses directly connected with the immigration program account for
 $1,070,000,000 of the total expenditure of $1,251,500,000 envisaged, thus
,leaving only $180 million for general development purposes, including
raising the Arab standard of living."
   Mr. Merriam concluded: "it is difficult to see how serious considera-
tion can be given to a financial request of this kind before political
conditions in and around Palestine are placed on a sound basis and
before the immigration and financial policies of the Jewish State are
established. It is inconceivable that the Congress or the Eximbank
would provide funds for the purpose of setting up an economic and
immigration regime on a shaky, indigent basis which would result
only in further appeals for money and other forms of assistance, prob-
ably including arms and armed force, to carry forward an unsound
investment." (867N.51/12-3147)

Go up to Top of Page