Washington (Sep. 4)
A proposed loan of $300,000,000 for development of the Arab states has been given some study by the State Department, but not consideration in the sense that any plan is in preparation for submission or recommendation of such a loan to anyone, Acting Secretary of State William Clayton said today. The Grady-Morrison “federalization plan” for Palestine proposed the issuance of such a loan.
Asked about the reported refusal of the Syrian Government to discuss oil and aviation agreements with the United States because of this government’s sympathy with Zionism, Mr. Clayton said that the State Department has received no indication that Syria is holding up the talks either for the reasons given, or any other reason. The American-Arab Oil Company, he said, is conducting the oil negotiations, without State Department participation, and the aviation talks are still in progress between the two governments.