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State Dept. Urged Not to Divert Aid from Israel to Iran

September 30, 1953
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Sen, Hubert H. Humphrey today wrote Secretary of State John Foster Dulles that it would be a “serious mistake” to divert to Iran a portion of Mutual Security aid intended by Congress for Israel and that such action was not in accord with testimony by the Administration at the time the funds were voted.

“While the figures were not made public,” said Sen, Humphrey, “the testimony presented by the Administration to our Senate Foreign Relations Committee led me and my colleagues to believe that you fully intended to continue our program for Israel along the lines and level of 1952-53, when the Israel appropriation totalled $70,000,000.”

The Senator referred to information released by the Foreign Operations Administration indicating that approximately $15,000,000 is being slashed from funds voted Israel so that it may be given to Iran. While agreeing that it was desirable to aid Iran, he expressed concern that such assistance was being taken at the expense of Israel and stressed that the Administration had authority under the Mutual Security Act to help Iran without hurting Israel, This could be done by using certain funds available for such contingencies.

Sen, Humphrey said: “A sharp reduction in the Israel aid program might gravely retard the agricultural and industrial development which is now under way and which must be pressed if Israel is to put its new immigrants to work. Inasmuch as it will take several years before Israel becomes economically self-sufficient, it would seem in our interest to maintain the program at the present level and thus shorten rather than prolong the period of Israel’s economic dependency.”

Noting that the aid cuts would also affect the Arab states, Sen. Humphrey said “the low standard of living that prevails in Arab countries suggests that we have just made a beginning in that region. It had been my impression that the Administration intended to extend our interest in the entire Near East rather than to diminish Accordingly, a retrenchment at this juncture could have an unfortunate psychological effect upon our none-too-happy relations with these states as well as an adverse effect upon their economies.”

Secretary Dulles was asked by Sen. Humphrey for an expression of his views on this issue.

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