Israel sources said today that they hoped a grant element would be included for Israel in the United States aid program for 1960. They said it was their impression that prospects existed for a satisfactory aid agreement.
After studying reports of the latest State Department testimony before the Senate Foreign Relations Committee, these sources said they believed negotiations were proceeding well. The testimony named several countries recommended for grant aid for fiscal year 1960.
Congressional sources said meanwhile that it remained their understanding that if the House Foreign Affairs Committee specifically recommended a special grant for Israel in its report, the recommendation would be accepted by the State Department.
(In New York today, Sen. Jacob K. Javits said that on the basis of talks with State Department officials during the last few days, he was “extremely confident” that Israel would receive grant aid next year. The New York Senator said that in a meeting with Secretary of State Christian Herter, he would stress the need for a “positive policy” on the Middle East.)
State Department sources said today that the United States was developing a Near Eastern policy which quietly seeks to improve relations with the United Arab Republic while trying to persuade Iraq away from Communism.
President Eisenhower indicated at his press conference today that the United States was attempting to walk a careful line between Iraq and the UAR. He said the United States was trying to show Near Eastern nations they had a greater chance of achieving aspirations in freedom than in association with Communism. Mr. Eisenhower said American policy in the Near East was to be fair to all nations. He had been asked whether he viewed the current Iraqi-UAR dispute as an opportunity to improve American relations with President Nasser of the UAR.
Mr. Eisenhower said he doubted the United States, at the moment, as he put it, would be willing to revive its offer to help Egypt build the huge Aswan Dam project.
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