Coll 54/1(S) 'Middle East (Official) Committee: Reconstruction' [‎358r] (719/940)

3. ECONOMIC AW SOCIAL DEVELOPMENT IN THE MIDDLE EAST
y* The Committee considered a Memorandum "by the Working
Party of the Middle East (official) Committee (M.E.( 0)(49)9)
. on Economic and Social Development in the Middle East.
SIR JOHN TROUTBECK said that the Memorandum stated very
clearly the major points of the case for a further drive in the
Middle East area. In one' important aspect, namely the
resumption of discussions with the U.S. Authorities, the
Memorandum was, however, not fully up-to-date. Discussions
had recently taken place in the Foreign Office with Mr. McGhee,
Adviser to the State Department on Arab Refugees. The state
Department had "been taking a renewed interest in the problem
of economic development in the Middle East, their point of
departure being the Arab Refugee Problem. Their approach
was that only through development schemes would any progress
be made towards solving the refugee problem, and they thought
that, when it came to asking for financial assistance to the
Middle East, the line most likely to appeal to Congress and to
secure the involvement of the U.S. in the general problem was
the re-settlement of refugees. The State Department considered,
however, that some form of United Nations cover would be
unavoidable. The Committee might therefore wish to consider
draft additions to paragraph 18 and a re-draft of the first
sentence of paragraph 34 of the Memorandum which had been
prepared and would now be handed to those present. x
THE CHAIRMAN, referring to the general purpose of the
Memorandum, said that the Middle East was an area of enormous
importance to His Majesty*s Government. The present was a
moment of stocktaking among the Arab States. The Palestine
War had ended in the failure of their efforts and the coming
months offered an opportunity which might never recur of
helping them to get out of the rut of inertia and apathy in
which they found themselves. The Arab States themselves were
tending to turn to the United Kingdom for advice and help.
We were not dealing with an area in which tidy economic plans
could be carried out or European standards applied. It was a
question of passing from conditioxis of comparative internal chaos
to stability. The aim of the Memorandum was to put the problem
of economic development into correct focus and to lay down general
principles. If the Committee thought the Memorandum was on the
right lines they might wish to endorse it for submission to the
Official Committee on Economic Development. The next step
thereafter might be to make a financial analysis of the necessary
development schemes. The sums concerned might turn out to be not so
later be thoug «- This ’ howcver ’ was
a
The Committee then considered certain general aspects of
the Memorandum, including the maintenance of a due balance
between the United Kingdom and U.S. contributions over the whole
field and between the claims of different areas in which the
United Kingdom was specially interested. In discussion the
following points arose--
(a) It was agreed that we should, in any discussions with
the U.S. Authorities, underline the substantial contribution
towards the development of overseas territories which the United
Kingdom was making, not only in the Middle East but in the Colonies,
the Commonwealth, the Occupied Territories, the Far East and
elsewhere. This should ensure that the problem was reviewed in
the general context of world-wide development.
* To be circulated, together with other amendments^and addenda
proposed under the same Item, as M.E.(o)(49)9 (Revise).