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DECLASSIFIED SECRET E. O. 11652, Sec. 3(E) and 5(D) or (E) Depr. of State letter, By NLT- =2- He NARS the United States, the money now contributed to the Jewish community was being used solely for war "which eats up everything". Dr. Magnes said that the Hagannah costs $4 million a month to run. He was certain that, if contributions from the United States were cut off, the Jewish war machine in Palestine would come to a halt for lack of financial fuel. On the Arab side Dr. Magnes said that Syria was in very shaky finan- cial straits, and that the situation in Iraq was also precarious. I asked him if his proposed embargo would apply to all financial relations with Palestine and the Arab States or only to contributions. He said that at this juncture he thought it should refer to the latter and not to ordinary commercial transactions. Speaking of the truce, Dr. Magnes greatly doubted that a truce could be worked out by the United Nations, operating some six or seven thousand miles distant from the scene. He thought a real truce could only be developed on the spot in Palestine. As for the nature of a truce, there were two possible alternatives. There could be a voluntary truce, which Dr. Magnes thought was now almost out of the question, or an imposed truce, which would call for the use of force. It seemed from the debates at Lake Success that no country was willing to take up the American offer to send troops to implement a trusteeship provided other governments did likewise. Accordingly, the prospects for an imposed truce - unless this could be accomplished by financial sanctions - did not seem bright. Dr. Magnes then turned to the problem of Jerusalem. He said he had lived in Jerusalem for 25 years. He knew its people, both Arabs and Jews, perhaps as well as any living man. He assured me with great conviction and intensity that the populace of Jerusalem - Arab and Jew alike - is heartily sick of the situation in which they find themselves and that their burning desire is peace. Dr. Magnes said that if the United Nations could send some man of integrity and character to Jerusalem, preferably a man from a religious call of life, he thought that the populace of Jerusalem would gather behind such a leader to provide a regime of peace for the Holy City. He said that there were both Arab and Jewish municipal councils and that there were separate Arab and Jewish police forces, each numbering 300 men. It would be necessary for the United Nations Commissioner to do something immediately to enable the populace to restore certain public services, particularly the water supply. However, Dr. Magnes was certain of success if such a United Nations Representative of the proper qualifications were sent. In response to a question he said that there was always the danger of physical violence, since the SECRET

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Page context
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    "ocrText": "DECLASSIFIED\nSECRET\nE. O. 11652, Sec. 3(E) and 5(D) or (E)\nDepr. of State letter,\nBy NLT-\n=2-\nHe\nNARS\nthe United States, the money now contributed to the Jewish community was\nbeing used solely for war \"which eats up everything\". Dr. Magnes said\nthat the Hagannah costs $4 million a month to run. He was certain that,\nif contributions from the United States were cut off,\nthe Jewish\nwar machine in Palestine would come to a halt for lack of financial fuel.\nOn the Arab side Dr. Magnes said that Syria was in very shaky finan-\ncial straits, and that the situation in Iraq was also precarious. I asked\nhim if his proposed embargo would apply to all financial relations with\nPalestine and the Arab States or only to contributions. He said that at\nthis juncture he thought it should refer to the latter and not to ordinary\ncommercial transactions.\nSpeaking of the truce, Dr. Magnes greatly doubted that a truce could\nbe worked out by the United Nations, operating some six or seven thousand\nmiles distant from the scene. He thought a real truce could only be developed\non the spot in Palestine. As for the nature of a truce, there were two\npossible alternatives. There could be a voluntary truce, which Dr. Magnes\nthought was now almost out of the question, or an imposed truce, which would\ncall for the use of force. It seemed from the debates at Lake Success that\nno country was willing to take up the American offer to send troops to\nimplement a trusteeship provided other governments did likewise. Accordingly,\nthe prospects for an imposed truce - unless this could be accomplished by\nfinancial sanctions - did not seem bright.\nDr. Magnes then turned to the problem of Jerusalem. He said he had\nlived in Jerusalem for 25 years. He knew its people, both Arabs and Jews,\nperhaps as well as any living man. He assured me with great conviction\nand intensity that the populace of Jerusalem - Arab and Jew alike - is\nheartily sick of the situation in which they find themselves and that their\nburning desire is peace.\nDr. Magnes said that if the United Nations could send some man of\nintegrity and character to Jerusalem, preferably a man from a religious call\nof life, he thought that the populace of Jerusalem would gather behind such\na leader to provide a regime of peace for the Holy City. He said that\nthere were both Arab and Jewish municipal councils and that there were\nseparate Arab and Jewish police forces, each numbering 300 men. It would\nbe necessary for the United Nations Commissioner to do something immediately\nto enable the populace to restore certain public services, particularly the\nwater supply. However, Dr. Magnes was certain of success if such a United\nNations Representative of the proper qualifications were sent. In response\nto a question he said that there was always the danger of physical violence,\nsince the\nSECRET"
}