Foreign Relations of the United States: Diplomatic Papers, 1945, The Near East and Africa, Volume VIII

800.50/5–1245: Airgram

The Minister in Egypt (Tuck) to the Secretary of State

Cairo, May 12, 1945.
[Received May 24—8 p.m.]

A–245. From Hoskins.

• “1. I recommend that as a step in formulating an American postwar economic policy in the Middle East, the United States Government hold a regional conference in this area as soon as practicable. Such a conference under the sponsorship of the State Department could consider local as well as various regional problems. It would be expected to come to specific decisions and make recommendations for consideration by appropriate authorities in the development of plans for trade and general economic matters. Changing conditions due to progress of war and consequent likelihood of early improvement in supplies and shipping make decisions on many points of increasing urgency. Such a conference would also have a sound psychological effect throughout this area as indicative of America’s continued interest in the Middle East. As the Department may recall, the dissolution of AEMME and Landis’¹² press release on his departure were interpreted by many elements in the area as a first American step toward another period of economic isolationism.
• “2. British recognized necessity for such a meeting on their side and recently held near Cairo an economic conference attended by their chief diplomatic and economic representatives throughout the area, as well as by several officials sent especially out from London. I understand this conference was considered to have been worth the expense and effort involved. The conference was freely publicized after the event as exemplified in article and photograph from local paper being sent by letter to Fred Winant. Public reaction appears to have been excellent since it emphasized to the people of the Middle East the keen and continued economic interest of the British.
• “3. I have discussed the holding of such an economic conference informally with several Ministers in the area including Tuck and Wadsworth,¹³ as well as with Henderson¹⁴ before his departure and all have expressed their keen interest and approval. While attending such a conference, no official would be more than a few hours’ flying time away from his post.
• “4. It is I believe important to hold such a conference at the earliest possible date. Its convening should not be postponed for the ‘perfect’ moment which in actual fact will never occur since no movement chosen is likely to be equally satisfactory to everyone involved. At the same time the Department may feel it necessary to delay such a conference until the new heads of missions to several of the countries in this area have arrived at their posts.
• “5. I suggest that this, the first conference of its kind, be held in Cairo as the most convenient post to a majority of the proposed delegates. Similar conferences which might be arranged in the future could be held in rotation at other convenient posts in the area. Minister Tuck has stated that he will be glad to act as host to the delegates if it is decided that Cairo is to be the first place of meeting.
• “6. Some items which might usefully be considered by the conference are:

  (a) The pressing problem of dollar exchange which is universal throughout the area.

  (b) Policy and plans regarding disposals of surplus materials and military installations.¹⁵

  (c) The size, type and functions of American Government economic organization needed in the Middle East.

  (d) Problems dealing with the sound promotion of American trade with the Middle East, both imports and exports, including such problems as our attitude toward the operation of import licensing in the several countries.

  (e) American attitude toward continuation of MESC.¹⁶

  (f) Our economic relations with Pan-Arab Union.

  (g) American petroleum problems in the area.¹⁷

  (h) Civil air matters¹⁸ including such items as sales of planes, landing rights, etc.

• “7. It would be most desirable if the Merriam-Winant paper on Middle East economic policy¹⁹ could be presented to the conference as this would be the ideal place to bring it before those people who are responsible for its implementation.
• “8. To insure greatest usefulness of conference, several representatives should come out from Washington. Since it would be the first of its kind, I hope Mr. Clayton can attend and serve as Chairman. I suggest that the newly appointed deputy director of NEA²⁰ attend as well as at least two other officers from the Department such for example as Taft,²¹ Winant, Merriam or Allen, or any other Department officers working in this field. FEA and/or Department of Commerce also might wish to send delegates. Delegates from Middle East should include the chief of each mission and the senior economic personnel attached to his staff, as well as principal FEA representatives in the field offices. From Egypt we would have all senior economic representatives including the Petroleum Attachés, Civil Air Attaché, Treasury Representative, Principal FEA Representative, War Shipping Administration Representative, Commanding General of AMET²² or an Army economic specialist. OWI²³ representative, who could be helpful in obtaining such publicity for the conference as might seem advisable, would also be invited to attend.
• “9. Although Turkey is not included within the framework of the unified Middle East economic organization, it does have a variety of problems in common with other countries of the area which will be represented at the conference. It is suggested therefore that representatives from the American Embassy in Ankara be invited to attend, and we would appreciate your decision on this point.
• “10. Agenda and arrangements for conference can be made by staff here which also can serve as secretariat. I believe small auditorium of American University can be obtained for official meetings.
• “11. If this project is approved in principle, detailed plans will be prepared in accordance with any departmental suggestions or instructions you may give. I shall appreciate being advised of the Department’s approval for holding such a conference as well as its suggestion of the earliest practical date at which the Department believes the conference can be held. Mr. Tuck suggests it be held not earlier than September or October.[”]

Tuck

12. Mr. James M. Landis, who left his position as Director of the American Economic Mission in the Middle East on January 3, 1945. In telegram 29, January 2, 1945, 9 p.m., to the Minister in Egypt, the Department stated: “In view of imminent departure of Landis and present unresolved status of relationship of economic personnel at Cairo, you are hereby instructed as Senior Diplomatic Representative in Egypt to take charge of all American civilian personnel of AEMME in Egypt and to assume the responsibility of broad local direction and overall general coordination of their activities to the end that American participation in MESC and other appropriate American economic functions may be carried on without interruption.” (123-Tuck S. Pinkney)
13. George Wadsworth, Minister to Syria and Lebanon.
14. Loy W. Henderson, who was appointed Director of the Office of Near Eastern and African Affairs on April 17, 1945. Previously, he had been Minister to Iraq.
15. For documentation on this subject, see pp. 82 ff.
16. For documentation on this subject, see pp. 85 ff.
17. For documentation on this subject, see pp. 49 ff.
18. For documentation on this subject, see pp. 64 ff.
19. See Report by the Coordinating Committee, May 2, and footnote, p. 5.
20. Presumably, reference is, to newly appointed Director of the Office of Near Eastern and African Affairs, Loy W. Henderson.
21. Charles P. Taft, Director of the Office of Transportation and Communications.
22. Africa-Middle East Theater.
23. Office of War Information.