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U.s Favors Neither Jews nor Arabs in Palestine Issue, State Department Says

The State Department denied today-that it is seeking a settlement in Palestine which would deliberately favor either the Arabs or the News. Questioned about Israeli Foreign Minister Moshe Shapett’s speech in the Knesset yesterday, the Department issued the following statement:

“There” has never teen any intention on the part of this Government, working through the United Nations Conciliation Commission, to do anything other than exercise its good offices in attempting to reach a just settlement.”

President Truman refused to comment today on whether he was satisfied with the Israeli reply to the American note demanding repatriation of Arab refugees. The question was asked at his press conference this morning. The President said the problem was being dealt with at Lausanne.