Note dated 26 June 1952 from the Acting Representative of the United States transmitting an Aide Memoire to the
Conciliation Commission from the Ambassador of Israel to the United States
2. The Permanent Representative of Israel to the United Nations expressed appreciation of the desire of the Palestine Conciliation Commission to improve the relations between Israel and the Arab states, and undertook to convey to his Government a full report of the observations presented by Ambassador Palmer. At the same time the Permanent Representative of Israel to the United Nations pointed out that there were many Israel residents who had left Arab countries, especially Iraq, and whose bank accounts were still held by Arab governments and banks. It would be reasonable to expect that the interests of these refugees from Arab countries should be treated with no less concern than those of Arab refugees from Israel.
3. It will be recalled that on 15 February 1950, representatives of Israel and of Egypt (the latter representing all the Arab states) signed an agreement on this question in Geneva during the meetings of the Palestine Conciliation Commission. Subsequently, the Arab governments all declined to give effect to this agreement, which would have resulted in immediate benefits for many thousands of refugees and of other former Arab residents of Palestine.
4. The Government of Israel has now given consideration to the request submitted on behalf of the Palestine Conciliation Commission. It wishes, whenever possible, to alleviate the position of Palestine refugees and assist their resettlement. Accordingly, the Government of Israel now expresses its willingness to discuss measures for the gradual release of accounts held. by Arab refugees in Israel subject to the over-all foreign exchange position of the country. The Government of Israel suggests that this acceptance in principle of the request made by the Palestine Conciliation Commission be now followed by discussion of specific arrangements between the Palestine Conciliation Commission and the Permanent Delegation of Israel to the United Nations.
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