Split the Blood Money - Brilliant New Notion

I came upon a quotation today from one of Israel's Founding Fathers that quite took my breath away:
".. as early as February 1951, (Moshe) Sharett linked the compensation Israel would receive from Germany with the compensation Israel would one day give the Arabs: "If we receive compensation from the Germans, it will enable us to make generous compensation to the Arabs. If we demanded compensation from the Germans, we cannot ignore our obligation to pay compensation to the Arabs."
Israel's great debate - By Yossi Sarid

Israel could not survive then, without regular payments from Germany, or now, without regular payments from the USA.
But the idea of compensating the wogs? Preposterous!