Shipping for displaced persons.

Your telegram 1324. [1]

Since my interim telegram 1527 Minister has continued to press
matter with State Department. Accompanied by General Wood
(P.C.I.R.O. Washington) he attended a conference with Wisner
(Acting Assistant Secretary of State for occupied areas during
General Saltzman's absence at the Council of Foreign Ministers),
Warren (Population transfer adviser) and Fierst. Stirling put
forward Commonwealth Government's proposal which General Wood
formally supported. Wood however makes it clear that he considers
there is little prospect of United States authorities agreeing.

Following points emerged from discussions:-

1. Burden of maintaining displaced persons in United States zone
does not at present rest with United States Government but
P.C.I.R.O. United States Government has subscribed to extent of
45.7% of the 100% operating budget of I.R.O. (which according to
Wood represents approximately 60% of operational budget reduced to
amount believed to be realisable) and at present time provides
approximately 80% of voluntary contributions.

2. Wood stressed the competition which the partition of Palestine
and the prospects of opening it up for migration will arouse.

3. Both State Department and Wood also stressed the distance
between Europe and Australia and length of time taken by ships for
voyages and subsequent overhauling in United States Yards compared
with short voyage to Halifax, Canada. Warren said that Canada had
agreed to take 20,000 displaced persons per annum and were ready
to step total up to 30,000 as soon as goal of 20,000 was in sight.

He added that priorities of displaced persons themselves were (1)
United States (2) Canada (3) Australia (i.e. as opposed to South
America).

4. Wood summarised his present facilities, namely, three ships ex
United States Army Stewart (my telegram 1544) Sturgis and
Heintzelman. He said that before he left Geneva agreement had been
reached for use of two British ships possibly three (of which he
did not know the names) with somewhat smaller carrying capacity
wh[ich] he hoped would be used on the run to Australia. He added
that within the last few days a good prospect had arisen of his
getting a fourth ship from United States Army General Black of
similar type to their other three.

He said that present agreement with army which expires in March
would be renewed till June and he believed it would be further
extended throughout 1948.

Stirling urged careful examination of cost of maintenance as well
as transport and Wisner undertook to give whole question full
consideration. Warren suggested that if not possible earlier, a
way out might be found for budgetary period commencing 1st July
1948.

We have also been in close touch with Sargeant, deputy and interim
successor of William Benton whom you saw when you were here and
who made enquiries as to probabilities. Impression he got and
passed on confidentially was that there was little prospect of
getting further money for I.R.O. from Administration at present
time
and furthermore that I.R.O. is 'not over eager to go out of its
way in direction of Australia', because of the lower costs of
settlement of displaced persons in Western hemisphere. [2]