Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY # WASHINGTON DECLASSIFIED E.O. 12063, Sec. 3-402 August 10, 1949 State Dept. Guideline, June 12, 1979 By NLI-HC NARS, Date 11-13-10 SUMMARY OF TELEGRAMS ECA FUNDS Since the total ECA appropriation will be substantially less than the aggregate deficits reported by the partici- pating countries to OEEC, we are pointing out to our various missions for their guidance 1) that the European Recovery Program has since its inception been based on the assumption of declining US aid each year, 2) that the initial recommendations for the division of aid and the steps necessary to achieve recovery must be made by the OEEC, and 3) that the US will follow these recommendations to the fullest extent possible. While we have a common interest with all the participating countries in the continued success of the program, we feel that those countries now facing difficult adjustments should present their cases to OEEC and not attempt to appeal directly to Washington. PALESTINE The Israel Foreign Minister has informed our Charge in Tel Aviv that his government is dismayed at our admonition that Israel might give stronger support to the Palestine Conciliation Commission at Lausanne. He said that Israel is determined to seek peace in the Middle East and "means business" in its resolve to coop- erate with the PCC. Nevertheless, as a "sovereign independent state here to stay", he felt that Israel should be given a "free hand" in its efforts to contribute to the peace whether through the PCC or through direct negotiations with the Arabs. Meanwhile, with reference to Israeli allegations of information direct from the White House with reference to our Palestine policy, we are informing our representatives in Lausanne and Tel Aviv that the Israelis should be left under no illusion that there is any difference of opinion among the President, the Department and the US delegation at Lausanne or that our policy, which has been repeatedly stated in the past, has been changed in any way. CHINA Our representative in Canton reports that Acting President Li Tsung-jen is already planning for the day when he will lead only a local area of resistance and that he has already approached our Embassy office to inquire whether the US would consider supporting local autonomous areas continuing to resist Communism. Li indicated that his recent talks with the Generalissimo at Formosa had accomplished nothing, but he nevertheless appears willing to continue as Acting President until the government is forced to flee from the mainland. m