Speech #840119278

In the case of each aid program we take into account the nature of the project in question and the purpose for which it was intended. I can assure you that United States aid would not be extended for purposes or under circumstances which we judged would undermine peace in any part of the world. The Arab refugees remain perhaps the most important single source of bitterness existing between the Arab States and Israel. In my speech of August 26. 1955. I proposed that the problem of the Arab refugees be attacked in several ways. I suggested United States participation in an international loan to Israel to assist her in funding her obligation to pay compensation for property left in Israel by the refugees and which is now being utilized by Israel. I recommended assistance to Israel and the Arab States in the rehabilitation of the refugees both by repatriation to Israel to such extent as might be feasible and resettlement in adjoining Arab States. In this connection the Arab States and Israel have accepted. on a technical basis. the Jordan Valley plan which would provide new economic opportunities for several hundred thousand refugees. But final political approval remains to be achieved. Thus. some progress has been realized. but much remains to be done.