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DEPARTMENT OF STATE WASHINGTON SECRET SEGURITY INFORMATION June 30, 1952 MEMORANDUM FOR THE PRESIDENT Subject: Appointment with Israel Foreign Minister, Mr. Moshe Sharett. The Israel Minister for Foreign Affairs, Mr. Moshe Sharett, and Ambassador Eban have an appointment with you Tuesday, July 1, at 12:15. While the ostensible purpose of the call is one of courtesy prior to his return to Israel, it is possible that the For- eign Minister may take the opportunity to mention Israel's present financial difficulties. In this connection, Mr. Sharett has already requested Uni ted States Government assistance in refunding Israel's short term debt, stated to amount to $124 million. Possibilities suggested by the Foreign Minister included an Export Import Bank loan or use of the United States Treasury Stabilization fund. The need for such aid has not yet been proven, nor has it yet been possible to evaluate its effect upon our policy of impartiality in the Near East. The difficulties are such that Dr. Raymond F. Mikesell, Professor of Economics at the University of Virginia and consultant to various government agencies, is being sent to Israel, with the cooperation of the Israel Government, in an endeavor to obtain sufficient information about Israel's financial and economic problems to recommend methods and policies for solving them. The important points made by the Secretary in his conversation with Foreign Minister Sharett and Ambassador Eban were: (1) He would have the matter gone into urgently; (2) Mr. Mikesell is being sent to Israel to try to find an answer to Israel's financial troubles; and (3) we must determine whether Israel's financial policy will be effective or whether Israel will continue policies "which would recreate the present situation." The DECLASSIFIED Authority NLT- f 2-13 By NC NLT Date 1-3-63 SECRET SEGURITY INFORMATION