The Secretary of State to the Egyptian Minister ( Hassan )2
Sir: I have the honor to refer to the conversations that have occurred between the representatives of our two Governments in connection with the agreement signed at Washington on this day, between the [Page 89] Government of the United States of America and the Government of Egypt on the principles applying to aid under the Lend-Lease Act,3 and to set forth my understanding of the accord reached as to the application of certain provisions of the said agreement, as follows:
- In general, foodstuffs and other supplies for the civilian population of Egypt shall continue to be furnished through regular commercial channels. However, such foodstuffs and other supplies as may be provided for the civilian population of Egypt under the Lend-Lease Act shall be furnished on the basis of current payment by the Egyptian Government, and other goods and services may be furnished on that basis by agreement from time to time. Payments shall be made in United States dollars or as agreed mutually between the two Governments prior to delivery. Articles obtained by the Egyptian Government in accordance with the provisions of this paragraph become the property of that Government and are therefore excluded from the provisions of Article V of the agreement.
- Such payments as may be made in Egyptian pounds shall be deposited to the credit of the Government of the United States in a depositary in Egypt to be selected by the United States Government. These deposits may be freely drawn upon and used by the Government of the United States. The Government of Egypt will permit the exportation to any destination desired by the United States of any materials and products purchased by the United States with such deposits. In any transaction envisaged in this paragraph the United States Government would, of course, conform to the applicable Egyptian laws or regulations with respect to internal prices or supply programs.
- With particular reference to Articles V and VII of the agreement, it is agreed that if substantial amounts of materials or assistance furnished or to be furnished under the Lend-Lease Act or otherwise, by any Agency of the United States Government without current payments by the Government of Egypt have been or shall be employed by either of our two Governments, during the present war, in the construction of any installations on Egyptian territory, the disposition of such installations remaining on Egyptian territory after the present war shall be governed by an agreement or agreements to which both our Governments shall be parties. Such agreement or agreements shall make appropriate provision for the future ownership and operation of the installation or installations in question, and for the payments or other benefits to be received by the Government of the United States on account of its contribution to their cost. The governing [Page 90] purpose of such agreement or agreements shall be to carry out in practice, in whatever way may then appear to be the most effective, the principles of the Joint Declaration of August 14, 1941, known as the Atlantic Charter, and in particular the fourth point thereof relating to the enjoyment by all States of access on equal terms to the trade and to the raw materials of the world. If such agreement in the case of any installation is not reached within a reasonable time after the end of the present emergency, as determined by the President of the United States of America, the Government of the United States may withdraw that installation, or the parts thereof which it shall have contributed, whether located on private or on public land, doing no unnecessary damage in the process, and leaving the land involved in a safe condition. However, with respect to such installations or parts thereof which in the view of the United States, it may not be feasible or worthwhile to remove from Egypt, the disposition of any such installations or parts not dealt with under the foregoing provisions will be left to future negotiations.
- The other obligations of our two Governments in respect to mutual aid will be satisfied in accordance with the provisions of the agreement signed this day. It is of course understood that in the implementation of the agreement, each government will act in accordance with its own constitutional procedures.
[In a memorandum of June 8, 1945, the Assistant Chief of the Treaty Section of the Division of Research and Publications (Bevans) stated that spokesmen for the Office of the Legal Adviser and the Division of Lend-Lease and Surplus Property Affairs took the position that the Lend-Lease Agreement with Egypt was not in force, notwithstanding its provisions, and that it would become effective as of the date of signature only after approval by the Egyptian Parliament (883.24/9–2546). On October 4, 1946, a note was sent to the Egyptian Minister, inquiring whether the Egyptian Parliament had approved the agreement (883.24/9–2546). The Minister’s reply of November 13, 1946, stated that while competent committees of Parliament had been studying the agreement, the United States had announced discontinuance of lend-lease operations (see White House release of August 21, 1945, volume VI, page 109) and that no further action by Parliament had taken place (883.24/11–1346). The agreement is considered by the Department of State to be unperfected (883.24/9–2546).]