The United States has indicated to Israel that it does not expect that country to repatriate Arab refugees en masse, it was learned today. That is the interpretation official circles here are placing on a reported statement from Washington that the U.S. expects Israel to do its share to solve the refugee problem in the context of an eventual peace agreement, but only on the basis of the principle that Israel is a Jewish state. Israel’s position has been that the mass repatriation of Palestinian refugees would destroy the Jewish character of the nation. Israel’s official note to the U.C. accepting the latest peace initiative made that point clear. According to sources here the U.S. has assured Israel that it favors compensation for the refugees but will not support Arab demands that they be given a choice of compensation or return to their former homes. Insistence on repatriation would wreck any peace accord, the sources said. Israel government circles support the principle of compensation but don’t think the entire burden should fall on Israel. Their view is that the payment of compensation to the Arabs should be an international undertaking and should be balanced by payment for property seized from Jewish citizens of Arab countries, mainly Syria and Iraq.
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