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ins
ernment is being compelled by the exigencies
Places, while the US supports some form of
ent
of Israel's economic situation to adopt policies
international regime for the whole city. Al-
tia-
which are progressively strengthening its ties
though the US has indicated that it is pre-
m-
with the US and weakening its ties with the
pared to modify its views on all these issues,
sh-
USSR. At the same time, MAPAI, the dom-
particularly if Israel and the Arab states reach
cle-
inant party in the coalition, is strongly anti-
direct agreements on them, there is at present
ore
Communist and neither the Israeli Commu-
little likelihood that the views of either Israel
or
nist Party nor the pro-Soviet MAPAM Party
and the Arab states or of Israel and the US
is represented in the government. For these
can be soon reconciled. Until they are recon-
reasons it is not surprising that the USSR has
ciled and the major issues in Palestine are
little faith in Israel's professions of neutrality
resolved, Israel will probably be considered an
are
and accuses Israel of being within the Western
increasingly poor credit risk, and its relations
orbit. Furthermore, there appears to be no
with the US Government will rest on an un-
ity
ent
real threat to MAPAI's dominant position in
easy basis. Israel's continuing need for finan
of
Israel or any indication that either the ICP
cial support from the US, however, will prob-
ore
MAPAM will significantly increase its follow-
ably eventually compel it to base its policies
R,
ing in the foreseeable future.
on economic rather than political or nation-
Israel's relations with the US have also
alist considerations.
es
cooled somewhat during the past two years
The best evidence that Israel's foreign policy
ipt
largely as a result of differences over the
is still dominated by nationalist war psychol-
ul.
solution 01 ine ralestine issues. At the same
ogy rather than by the realities of a desperate
he
time, however, though Israel is resentful of the
economic situation is the fact that relations
more critical attitude of the US, it knows that
with the UK are still strained even though the
it is heavily dependent on US financial and
UK is potentially one of Israel's best markets.
diplomatic support. In January 1949 Israel
In general, the Israelis continue to hark back
W
was granted a 100-million-dollar loan by the
to the UK's restriction of Jewish immigration
g-
Import-Export Bank, and US Zionist sources
and land purchase during the Mandate, the
have in recent years collected between 100 and
UK's refusal in the winter of 1948 to cooperate
p-
as
150 million dollars annually to meet Israel's
with the UN and Jewish authorities in imple-
a
pressing needs. Financial assistance of this
menting the UN Partition Plan, and the UK's
ist
order will be required for many years, but the
subsequent impounding of Palestinian assets
willingness of public US sources to assist Israel
which Israel claimed as the successor power.
'0-
financially in the future will depend in some
Israel believes that the UK's close ties with
y.
degree the compatibility of Israel's policies
Jordan have been largely responsible for Jor-
(with US interests in the Near East and upon
dan's refusal to negotiate a peace settlement
i,
the ability of Israel to show that it is a sound
on Israel's terms. It has accused the UK of
or
th
economic risk. At present US and Israeli poli-
rearming not only Jordan, but Iraq and Egypt
as
cies toward the three major issues in Palestine
as well, so that the Arabs can eventually re-
ts
differ widely. On the territorial issue, Israel
sume the war against Israel. Although a
ly
insists on keeping all the territory it now occu-
temporary agreement was reached between
pies; while the US supports a settlement based
Israel and the UK in May 1949 for the release
el
on the 1947 UN Partition Plan, unless Israel
of a portion of Palestine's sterling credits to
and the Arab states agree on some other solu-
Israel, subsequent trade negotiations between
tion. On the question of the Arab refugees,
the two countries have broken down over the
to
ly
Israel refuses to accept any responsibility,
question of the assets and liabilities of the
while the US endorses the December 1948 UN
n
mandatory regime. While Israel has taken
resolution that those refugees wishing to re-
over the assets, it has refused to accept re-
turn to their former homes in Israel be per-
sponsibility for the liabilities. While the
mitted to do so and that those not wishing to
whole question of the reopening of the Haifa
d
return be compensated by Israel for their
refinery (a British concern) has revolved pri-
losses. On the question of Jerusalem, Israel
marily around the unwillingness of Iraq to
favors limited UN supervision of the Holy
permit crude oil to flow through the Iraq
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"ocrText": "23\nins\nernment is being compelled by the exigencies\nPlaces, while the US supports some form of\nent\nof Israel's economic situation to adopt policies\ninternational regime for the whole city. Al-\ntia-\nwhich are progressively strengthening its ties\nthough the US has indicated that it is pre-\nm-\nwith the US and weakening its ties with the\npared to modify its views on all these issues,\nsh-\nUSSR. At the same time, MAPAI, the dom-\nparticularly if Israel and the Arab states reach\ncle-\ninant party in the coalition, is strongly anti-\ndirect agreements on them, there is at present\nore\nCommunist and neither the Israeli Commu-\nlittle likelihood that the views of either Israel\nor\nnist Party nor the pro-Soviet MAPAM Party\nand the Arab states or of Israel and the US\nis represented in the government. For these\ncan be soon reconciled. Until they are recon-\nreasons it is not surprising that the USSR has\nciled and the major issues in Palestine are\nlittle faith in Israel's professions of neutrality\nresolved, Israel will probably be considered an\nare\nand accuses Israel of being within the Western\nincreasingly poor credit risk, and its relations\norbit. Furthermore, there appears to be no\nwith the US Government will rest on an un-\nity\nent\nreal threat to MAPAI's dominant position in\neasy basis. Israel's continuing need for finan\nof\nIsrael or any indication that either the ICP\ncial support from the US, however, will prob-\nore\nMAPAM will significantly increase its follow-\nably eventually compel it to base its policies\nR,\ning in the foreseeable future.\non economic rather than political or nation-\nIsrael's relations with the US have also\nalist considerations.\nes\ncooled somewhat during the past two years\nThe best evidence that Israel's foreign policy\nipt\nlargely as a result of differences over the\nis still dominated by nationalist war psychol-\nul.\nsolution 01 ine ralestine issues. At the same\nogy rather than by the realities of a desperate\nhe\ntime, however, though Israel is resentful of the\neconomic situation is the fact that relations\nmore critical attitude of the US, it knows that\nwith the UK are still strained even though the\nit is heavily dependent on US financial and\nUK is potentially one of Israel's best markets.\ndiplomatic support. In January 1949 Israel\nIn general, the Israelis continue to hark back\nW\nwas granted a 100-million-dollar loan by the\nto the UK's restriction of Jewish immigration\ng-\nImport-Export Bank, and US Zionist sources\nand land purchase during the Mandate, the\nhave in recent years collected between 100 and\nUK's refusal in the winter of 1948 to cooperate\np-\nas\n150 million dollars annually to meet Israel's\nwith the UN and Jewish authorities in imple-\na\npressing needs. Financial assistance of this\nmenting the UN Partition Plan, and the UK's\nist\norder will be required for many years, but the\nsubsequent impounding of Palestinian assets\nwillingness of public US sources to assist Israel\nwhich Israel claimed as the successor power.\n'0-\nfinancially in the future will depend in some\nIsrael believes that the UK's close ties with\ny.\ndegree the compatibility of Israel's policies\nJordan have been largely responsible for Jor-\n(with US interests in the Near East and upon\ndan's refusal to negotiate a peace settlement\ni,\nthe ability of Israel to show that it is a sound\non Israel's terms. It has accused the UK of\nor\nth\neconomic risk. At present US and Israeli poli-\nrearming not only Jordan, but Iraq and Egypt\nas\ncies toward the three major issues in Palestine\nas well, so that the Arabs can eventually re-\nts\ndiffer widely. On the territorial issue, Israel\nsume the war against Israel. Although a\nly\ninsists on keeping all the territory it now occu-\ntemporary agreement was reached between\npies; while the US supports a settlement based\nIsrael and the UK in May 1949 for the release\nel\non the 1947 UN Partition Plan, unless Israel\nof a portion of Palestine's sterling credits to\nand the Arab states agree on some other solu-\nIsrael, subsequent trade negotiations between\ntion. On the question of the Arab refugees,\nthe two countries have broken down over the\nto\nly\nIsrael refuses to accept any responsibility,\nquestion of the assets and liabilities of the\nwhile the US endorses the December 1948 UN\nn\nmandatory regime. While Israel has taken\nresolution that those refugees wishing to re-\nover the assets, it has refused to accept re-\nturn to their former homes in Israel be per-\nsponsibility for the liabilities. While the\nmitted to do so and that those not wishing to\nwhole question of the reopening of the Haifa\nd\nreturn be compensated by Israel for their\nrefinery (a British concern) has revolved pri-\nlosses. On the question of Jerusalem, Israel\nmarily around the unwillingness of Iraq to\nfavors limited UN supervision of the Holy\npermit crude oil to flow through the Iraq"
}