NEW YORK (Aug. 22)
A proposal to set up a Palestine Confederation –consisting of an Israeli and an Arab state — was made here over the week-end in a statement issued by Dr. Judah L. Magnes, president of the Ihud Association. The Ihud leader, who is now in the United States, released the text of a 10-point program out-lining the establishment of the Ihud-advocated Palestine Confederation. The program calls for:
1. Establishment of a Confederation by agreement between Israel and the new Arab state of Palestine, possibly including Transjordan, with Jerusalem as capital of this Confederation. A coordinated foreign policy and measures of common defense to be developed by the Confederation.
2. Boundaries of the two states to be determined by negotiation between Israelis and Arabs, rather than imposed "by an outside body.
3. Economic Union of the two states as decreed "by the U.N., to be implemented immediately.
4. A Supreme Court of the Confederation which would define the sovereign rights to be reserved to the respective states, decide questions in dispute between them, and safeguard religious, minority and civil rights in both states.
5. Immigration and land, ownership to be left to the authorities of the respective states for the next two years; thereafter, these questions to be determined by the Confederation, or, in case of irreconcilable conflict, by the U.N.
6. Jerusalem in addition to being the capital of the Confederation, to be a demilitarized, internationalized zone.
7. Some form of international guarantee must be given to each state against attack from any neighboring country.
8. Restoration by each party of territory it has conquered outside the boundaries fixed by the U.N., with modifications permitted if agreed to by both sides.
9. Appointment by the U.N. of a Special Commissioner with authority to re-establish economic life and central services. This Commissioner, working from Jerusalem, should remain until a Joint Economic Council has been established by the two states.
10. Safeguarding of essential supplies for Jerusalem with the Jerusalem-Tel Aviv-Jaffa Highway temporarily placed under U.N. protection. All efforts should be made to preserve the character of the city as a spiritual center of world-wide importance, with special provision for repair to the damage caused by fighting in the Old City.