Memorandum of Conversation with Secretary of State Dean Acheson, Foreign Minister of Israel Moshe Sharett, Theodor Kollek, Moshe Keren, and Mr. Waldo

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M.A. s/s 360 776 MEMORANDUM OF CONVERSATION December 15, 1950. SUBJECT: Israel Suggestion that US Stockpile theat and Oil in Israel. PARTICIPANTS: S - The Secretary Moshe Sharett, Foreign Minister of Israel TRONAR Mr. Theodor Kollek, E. E. and M. P. of Israel Moshe Keren, Counselor, Embassy of Israel Mr. Valdo - NE COPIES TO: NEA (2) s/s (2) NE UNA DRN CIA E Moscow, London, Cairo, Tel Aviv, Jerusalem I received Messrs. Sharett, Kollek and Keren at their request. Mr. Sharett began by referring to his earlier discussion with me on October 20 concerning the food shortage in Israel. In a continuation of his earlier remarks, he said that Israel was faced with a very difficult situation as regards both food and fuel supplies, particularly in the light of the dangerous international situation. Israel's plight arose principally from the fact that Israel was isolated from the neighboring Arab states and could not depend upon them for any type of essential supplies. He wondered whether, in view of the possibility of war between the East and the West, the US would be willing to stockpile wheat and oil in Israel. Food and fuel were Israel's most urgent and vital necessities, without which it could not exist. Stockpiling by the US of these commodities in Israel might fit in V. ell with US plans for the area. Israel, of course, had no objection to similar aid by the US to the neighboring Arab states. The Foreign Minister stressed, however, that Israel was dependent on sources outside the area for food and fuel, whereas the Arab states were not. Israel hoped that the US Government might decide that a stockpile of vheat and oil in Israel was in accord with US interests and therefore desirable. The Foreign Minister pointed out that these supplics would be- long to the US Government and could be drawn upon by the DECLASSIFIEL US B: O. 11652, Sec. 3(B) and 50 er E Depr. of State letter, 7-26:29 NLT NC 2-15-79