U. N. Tells Arabs to Ignore Anti-Israel Move by Arab States

The United Nations Palestine Conciliation Commission today issued a statement urging Arab refugees to disregard the advice of the Arab governments against applying to Israel for the release of their blocked accounts in Israel banks.

"It is the earnest hope of the Commission that applications will be promptly submitted by account holders so that needy account holders in particular may receive payments under this first installment as rapidly as the technical work of verifying claims by the banks can be completed," the statement said. "By so doing, the refugees will not, in the opinion of the Commission, prejudice whatever other claims they may have nor will the payment of the first installment in any way prejudice the claims of the owners of accounts to the balance of their accounts."

The Commission announced that it has decided to send John Reedman for a short period to the Middle East to observe and report on the progress of the release scheme. Mr. Reedman acted for the commission in a consultative capacity during the technical discussions which preceded the agreement for release.

Turning to the allegations made by the Arab governments against Israel and of Israel’s reply to these allegations, the Commission statement detailed the manner in which Israel had a number of banks with offices in the Middle East act as its agents, and added that the "Palestine Conciliation Commission is pleased to have played a part in initiating and assisting the Government of Israel and the banks concerned to reach this agreement, since it will benefit many refugees." The Commission noted that the agreement for the total release of all blocked accounts owned by refugees in banks located in Israel was unconditional, subject only to the availability of foreign exchange, and stated:

"The Commission has taken note of recent allegations that the Government of Israel has imposed a 10 percent levy on the accounts of refugees to be paid out, as well as allegations that accounts of refugees of more than 500 pounds have been transferred to the Custodian of Alien Property which, it is alleged, constitutes confiscation.

"The Commission has been officially informed by the Government of Israel the accounts of refugees have not been made subject to the 10 percent levy on bank accounts over 50 pounds in Israel, and that the transfer of accounts of over 500 pounds to the Custodian of Alien Property was for the technical purpose of facilitating the release of funds to account holders.

"The Commission regards the release of the blocked accounts as an important step towards the settlement of differences existing between Israel and her neighbors and believes that speedy implementation of the release and payment will have the immediate effect of alleviating the condition of the refugees."

ISRAEL STAND ON RELEASE OF ARAB ACCOUNTS CLARIFIED

The Israel delegation at the UN, commenting on a communiqué by the Jordan Government last week attacking the program for returning blocked Arab accounts, said:

"1. The release of these funds by the Government of Israel was only authorized as an act of good-will and there is no desire to force them upon anyone. This action by the Israel Government was taken at the instance of the Palestine Conciliation Commission and was warmly welcomed by that body in its report to the present session of the United Nations General Assembly as an important step towards alleviating the plight of the Arab refugees and as a contribution to the improvement of relations between the Arab states and Israel. This action was equally welcomed by the delegations of a large number of member states of the United Nations.

"2. If was intended to be an act of good will is to become a source of contention there would seem to be little point in diverting urgently needed foreign currency for transfer to a country which regards the allocation as undesirable, refuses to recognize Israel’s existence and continues to act on the assumption, repeatedly refuted by the United Nations, that a state of war exists between it and Israel.

"3. With regard to the specific allegations contained in the Jordan Government’s communiqué, these are completely unfounded and have been refuted in detail by the spokesman of the Israel Foreign Ministry and by the Palestine Conciliation Commission, in a statement issued to the press.

"4. The obvious motive of the Jordan Government’s warning to the Arab refugees not to seek recovery of the released funds is revealed by its statement that applications for such a release would imply recognition of the State of Israel. Once again the plight of the refugees is being made a pawn in the economic and political warfare being conducted by the Arab Governments against Israel with callous disregard to the interests of the refugees themselves."