§ 48. Mr. Wyattasked the Prime Minister whether he will make a statement on the letter he recently sent to the President of Israel informing him that Her Majesty's Government were not prepared to make a loan requested by the Government of Israel.
§ The Prime MinisterPresident Weizmann recently sent me a message asking that Her Majesty's Government should agree to make Israel a loan of £5 million in order to finance Israel's purchases of oil during the next six months. Her Majesty's Government gave this request the most careful and sympathetic consideration, but despite our understanding of the difficulties with which Israel is faced, we felt compelled to inform the President that the gravity of our own economic situation precluded us from making a loan.
§ Mr. WyattCould I ask the Prime Minister to reconsider this matter, because Israel plays an extremely important part now in the affairs of the Middle East and it is important that we should maintain our influence there? Is it not a fact that it was proposed that a large part —I think one-quarter of this loan of £5 million—should be repaid in dollars, which would give it an attraction to us from a commercial point of view?
§ The Prime MinisterI can assure the hon. Gentleman that it was only with the greatest regret that I bowed to what I was convinced were the commanding facts of the situation.
§ Mr. ShinwellBut as very little assistance has been rendered by Her Majesty's Government in opening up the Haifa refinery and assisting Israel to obtain supplies of oil, would not the right hon Gentleman consider this matter? Will he have regard—there is no doubt that he will—to the military and defence aspects involved?
§ The Prime MinisterYes, Sir. I have for a long time considered this matter of great importance, but every step has to be taken by the Government with great care in order not to complicate still further the situation in these quarters
§ Mr. ShinwellHas the right hon. Gentleman observed that the United States Government have now decided to render arms assistance to Persia, apparently without consulting Her Majesty's Government? If the United States Government can render assistance to Persia, in view of what happened some time ago, surely Her Majesty's Government can render some assistance to Israel?
§ The Prime MinisterI sincerely think that all those matters ought carefully to be borne in mind.
§ Mr. WyattIs not the nub of this matter the re-opening of the Iraqi pipeline, and did not the Prime Minister, when in opposition, say that his Government would carry out a strong policy on these matters, and these difficulties we have had with these other States in the Middle East would be cleared up? Could he tell us why the Iraqi pipeline has not been opened?
§ The Prime MinisterI do not think I could do so without a definite Question being put on the Paper. The complications of all these oil questions are considerable, and they are multiplied when the foreign diplomatic aspect is also involved.
§ Major Legge-BourkeWould my right hon. Friend give an assurance that before this matter is reconsidered he will do everything which lies in his power to get the co-operation of the Israeli Government in preventing frontier incidents affecting the Arabs?
§ The Prime MinisterI do not really think I am called upon to make any particular statement on that subject. That question should be put to the Foreign Secretary. It is with very deep regret that I have been convinced that it is not possible for us to give this aid.
§ Mr. DaltonIs the right hon. Gentleman still open to re-conviction on this matter?
§ The Prime MinisterI am still open to reason, and it is because of reasons piling up one on top of the other that I have drawn the conclusion which was against my personal wishes, but that sometimes happens in life.
§ Mr. George PorterMay I ask the Prime Minister if, in determining the situation in regard to this particular request, full consideration was given to the considerable loss of trade which would have ensued to this country in regard to the previous discussions concerning a loan for Israel?
§ The Prime MinisterYes, Sir. All these matters were taken into consideration.