255. Telegram From the Department of State to the Embassy in Germany1
1431. Bonn’s 1253 (not rptd London).2 You may inform Westrick there has been no change in USG position re Aswan Dam project as set forth Deptel 325.3 While we understand that like USG neither IBRD nor UK disposed participate, we continue believe question [Page 578] FedRep participation second phase project matter for FedRep decide. We have no firm info re Westrick’s allusion possible FedRep association other Western oriented countries and would appreciate FedRep elucidation this point. However, we consider any such association matter for FedRep work out with any other interested parties.
FYI: Black’s reported comment re strong USG opposition FedRep participation may be outgrowth his conversation with Secretary December 11.4 At that time Black told Secretary that Erhard had apparently indicated to Egyptians that, if FedRep participated second stage low dam costing about $100 million, “Western powers” would agree to completion. In this context Secretary replied better for West not get involved in project and let Germans work out their own problem by themselves. You of course aware this connection Black expresses his own views in discussions with governments (of Deptel 325). End FYI.
FedRep has also apparently approached British. British Embassy informed Dept January 6 FonOff planning instruct UK Ambassador Bonn reply, inter alia, that it seems premature take decision now on whether second stage suitable subject government financing for West and that UK unable encourage British firms who might be interested. In response request our comments on UK proposed reply, we informing British Embassy we have similar views. We will add, however, wording proposed UK statement perhaps unduly discourages Germans and thus likely give rise belief in Cairo, which we feel should be carefully avoided, that UK and/or US actively seeking discourage assistance to UAR from Free World countries for this project.
- Source: Department of State, Central Files, 886B.2614/1–660. Secret; Niact; Limit Distribution. Drafted by Brewer; cleared by Jones, GER, E, and U; and approved and signed by Dillon. Repeated to Cairo and priority to London.↩
- Telegram 1253, January 6, reported that Ludgar Westrick, State Secretary in the Ministry of Economics, had inquired “urgently” whether the United States opposed West German participation in the second phase of the Aswan Dam. (Ibid.)↩
- Reference should be to telegram 523, August 11, which stated that, while the United States had not been approached and did not plan to participate in the Aswan Dam project, it had no objection to assistance from other Western countries. (Ibid., 886B.2614/8–859)↩
- See Document 251.↩