765.84/2277: Telegram

The Chargé in Egypt ( Childs ) to the Secretary of State

87. In a statement published last evening the Egyptian Government announced its adherence “to the principle of the application of financial and economic sanctions decreed by the League of Nations. Regarding the application of this principle, either to Italian exports to Egypt or Egyptian exports to Italy, the Council of Ministers considered it necessary to appoint a ministerial committee” which it was stated “will present a report on the application of this principle in so far as it is possible.”

The Egyptian authorities are disposed to go farther in the employment of economic sanctions than British authorities deem it advisable on account of the complication referred to in my previous telegrams on the subject as the Egyptians are quite willing to answer that upon the capitulations. British counsels along the lines of the general policy outlined in my telegram No. 84, November 1, 9 a.m., however are expected to prevail.