State Dept. Advocates More Aid to Arabs Despite Boycott of U.S. Jews

The State Department contends that aid to the Arab states should be increased despite continued Arab discrimination against American Jews, the Department made known to the House Appropriations Subcommittee on foreign operations, it was revealed today.

Phillips Talbot, Assistant Secretary of State, conveyed the Department’s views in testimony on foreign operations appropriations for 1963. The Subcommittee asked Mr. Talbot why aid to the Arabs was being increased in view of Arab boycotts, blockades, and discriminatory tactics affecting American citizens and American interests.

Mr. Talbot replied that “when it comes to using the aid instrument as a club on one country or another, we think that in the American interest there are likely to be more difficulties and more disadvantages than there are advantages,” He said there had been “some indication of willingness on the part of the United Arab Republic to put the Israeli question in the icebox for some time. This does not solve it, but at least puts it back so it is not a day-to-day irritant in their relations.”

“On the question of visas for Americans, regardless of race, creed, or color, once again it seems to me that we must push as hard as we can on this issue, but that the aid instrument is not the right tool for that,” he said. He reported that the State Department, to lift anti-Jewish measures affecting Americans, was working very quietly “with one or two of the Arab states.”

William S. Gaud, Assistant Administrator of the U.S. Agency for International Development, gave the Executive Department view on the various anti-bias measures incorporated into various foreign aid bills by Congress. He said that denial of aid on this basis “might prove counter-productive and further limit any useful role which we can play in these conflicts. These disputes require the balm of time, patience, and persuasion,” he stressed.

In Mr. Gaud’s view “although the USSR has continued to furnish military and economic assistance to the UAR, the latter has maintained an independent foreign policy.”

Mr. Gaud testified that America must plan development loans for Israel. He explained that “Israel faces a sharp reduction in reparations and restitution payments from Germany and needs a continued large inflow of capital to sustain its high rate of investment.”