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DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON October 25, 1948 SUMMARY OF TELEGRAMS PALESTINE Our delegation in Paris reports that the Israel represen- tative to the UN has taken a very conciliatory line toward the Bernadotte Plan in discussions with Acting Mediator Bunche, indicating that Israel will be satisfied if UN action at this session consists of affirmation of the existence of the Jewish state, the termination of hostilities and the right of individual Arab refugees to return to their homes and if the UN refers to the proposed concil- iation commission such questions as frontiers, Haifa, Lydda and access to Jerusalem. He stated that Israel would not resist the internation- alization of Jerusalem and would not insist on amendments to the Bernadotte Plan. GREECE In discussing the proposal for an increase in the size of the Greek armed forces, Ambassador Grady agrees that the Greek forces are not progressing as rapidly as expected in the restoration of security but states that this lack of progress cannot be attributed to inadequate personnel or materiel. In his view the main problem is the lack of effective leadership and the tendency of the gov- ernment to rely too heavily on outside assistance on the ground that this is not primarily a Greek problem. While he does not believe that the proposed expansion of the army should be authorized, Grady agrees that plans to reduce the present strength must be deferred. ITALY In expressing his concurrence with the proposed visit to the US of the Italian Army Chief of Staff, Ambassador Dunn points out that while the Italian government is making progress in weaning the public from the concept of neutrality to one of coopera- tion with the west, we still have a big job to do in overcoming the fear that neither Western Union nor the US really attach much importance to Italy. Dunn feels that we must continue to do everything possible to encourage those leaders who look to the west, that we must keep alive the idea that what we ultimately desire is real and effective European unity, and in the meantime we must do what is possible to build up Italian defenses. DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- HC NARS, Date 11-13-to