Memorandum of Conversation with Secretary of State Dean Acheson, Foreign Minister of Israel Moshe Sharett, Ambassador of Israel Abba Eban, and Fred Waller

5909 - SECURITY INFORMATION DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) DEPARTMENT OF STATE S/S 202 27-26 Dept. of State letter, By NLT ltc P NARS Date 11.24.76 Memorandum of Conversation 974 DATE: June 18, 1952. SUBJECT: Request of Israel Foreign Minister Moshe Sharett for Assistance in Overcoming Israel's Financial Difficulties. PARTICIPANTS: The Secretary Mr. Moshe Sharett, Israel Foreigh Minister Abba Eban, Israel Ambassador Mr. Waller - NE COPIES TO: s/s NEA NE E (Mr. Thorp) MSA (Norman Paul) TCA (Mr. Andrews) Tel Aviv London Paris, IAD, Treasury u. s. GOVERNMENT PRINTING OFFICE 16-61120-1 The Israel Foreign Minister, Mr. Sharett, accompanied by the Iarael Ambassador, Mr. Eban, called at their request on the Secretary at 12:15 today. After greeting the Secretary and a short exchange of pleasantries the Foreign Minister expressed, on behalf of his government, appreciation for the assistance given by the Secretary and the US Government toward a solution of Israel's compensation claim against Germany and in connection with Israel's financial energency of late April and early May. He con- tinued by stating that the purpose of his present visit was to inform the Secretary of Tarael's present financial difficulties and to request assistance in solving them. The Foreign Minister recited at some length the efforts of his gov- ernment to build Israel into a democratic country patterned after the US and efforts to rehabilitate a population rescued from persecution in many parts of the world. He also mentioned Israel's desire to build up its industry, its agriculture, to develop its resources, to search for water, to explore areas heretofore considered waste land, and sinilar ventures which require time and money. It is Israel's intention, the Foreign Min- ister stated, to make the country self-supporting, and it is hoped to bring this about by a substantial increase in exports of finished products as a result of industrial expansion and to export raw materials either in a natural or processed state. Mr. Sharett said that Israel must find a way to bridge the gap be- tween her imports and exports or, in other words, between income and ex- penditures. He believed that a solution to the problem could now be foreseen, although it was a question of years rather than weeks or months. One aspect of the problem, however, appeared to be incapable of solution by Israel alone and it was in connection with this problem that he wished the assistance of the US Government. The problen is to find a way to re- - SEGURITY INFORMATION