The State Department withheld comment today on a report from Tel Aviv that the United States is pressing Israel to agree to readmit 250,000 Arab refugees and to relinquish the lower part of the Negev in exchange for the Gaza strip, now held by Egypt.
The report, which appeared in the New York Tines, declared that in return for these concessions the United States is prepared to underwrite the cost of resettling the Arabs in Israel and would agree to the Jewish state retaining all other property acquired after the U.N. partition decision.
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