867N.01/6–848: Telegram
The Minister for Foreign Affairs of the Provisional Government of Israel (Shertok) to the Secretary of State
MH 334. Your undoubted sympathy with constructive resettlement and rehabilitation of Jewish victims of Nazi persecution in State of Israel concurrent with utmost development of Israel’s economic resources for future peace and prosperity of Palestine and Middle East encourages us to solicit your favourable consideration of application of provisional government of Israel to Import and Export Bank of [Page 1105] USA for loan of $100 million.1 This loan is intended to facilitate productive absorption of large numbers of refugees in Israel and to promote country’s agricultural and industrial development as well as to finance housing schemes and alleviation of temporary supply of shortages caused by present emergency conditions. Application is based on sound schemes of investment and economic development and bulk of loan will be self-liquidating.
We believe that record of Jewish development in Palestine in last 25 years in teeth of far-reaching disabilities imposed by outside tutelage is reliable indication of constructive potentialities of independence now gained and consequently of credit-worthiness of our state. We sincerely hope that your favourable consideration will enable us to obtain this measure of assistance for carrying through a programme of reconstruction based on our self-reliant effort and clear undertaking of complete repayment.
Awaiting your reply at your earliest convenience either direct or through our special representative Washington.
- In identical letters of May 21 to Senator James E. Murray and Representative Emanuel Celler, the Secretary of State wrote: “During the past three years informal conversations have taken place on several occasions with regard to various types of financial and economic assistance for Palestine and other countries of the Near East. These informal conversations were generally an integral part of parallel conversations with regard to such proposals as the report of the Anglo-American Committee and the discussions of the Cabinet Committee on Palestine. No proposals have thus far been made by the State of Israel with regard to the granting of a loan by the United States.” (867N.01/5–1248)↩