711.83/10–1249: Airgram

The Acting Secretary of State to the Embassy in Egypt

top secret

A–581. Department has read with great interest Embassy’s telegram No. 943, October 12 reporting your conversation with King Farouk and believes this frank initial exchange of views will contribute [Page 225] to forming the basis for a new and improved phase of United States–Egypt relations

While it is regretted that the King continues to place such emphasis on the Palestine question vis-à-vis US–Egypt relations the theme is well-known and it is assumed that you related to the King the efforts of this Government, in cooperation with the United Nations, to bring about a settlement of the Palestine question. The main concern of this Government is that there should be political and economic stability in the Near East area and it considers an early settlement on the Palestine question as an essential condition to that stability. In further discussions with the King you should emphasize that the self-interest of Egypt as well as of the other countries of the area can best be served by a resolution of the present impasse of the Palestine question.

The following comments and information on certain of the specific points raised by the King may be useful to you:

Training of Students—Training facilities have already been provided by the Air Force for two Egyptian officers in the field of photography and it is understood that the Army now has six Egyptian officers participating in training. Moreover, the Army and the Air Force are now considering the feasibility of providing training for an additional number of Egyptian officers and it is hoped that definite commitments can soon be made. For your information, the Department of Defense is in the process of determining training requirements under the Military Assistance Program and is, therefore, not in a position to make definite commitments at this time on training facilities for countries not included in present legislation.

While you may transmit foregoing information in general way to the Egyptian authorities, Department and Defense Department prefer that any specific information in regard to numbers or other details should be channelled through the Army or the Air Force Attaché to the Egyptian Defense authorities.

Arms Embargo—On August 11, 1949 the Security Council determined that the armistice agreements had superseded the truce arrangements, provided for by its resolutions, including the provisions with respect to the shipment of war material. The United States supported this action at which time Senator Austin set forth the principles which would guide the United States in connection with armed shipments to the Arab states in Israel. On August 7, 1949 during the debate of the Security Council Resolution Senator Austin made the following statement:

“So far as the United States is concerned, it does not intend to allow the export of arms which would permit a competitive arms race in the area. Export of arms to this area of the world should be strictly [Page 226] limited to such arms as are within the scope of legitimate security requirements, again as recommended by Dr. Bunche. We hope that prudence will prevail not only among the parties but among all nations of the world which are in a position to supply arms and that they will pursue a policy similar to that which we intend to pursue.

It is essential that the resources of this area be used for works of peace, for economic development, for the resettlement of refugees, and for the achievement of higher standards of living for the populations of the area. It would be tragic and wholly wrong if the resources of the area were to be dissipated in an unproductive arms race.”

Since the adoption by the Security Council of this resolution, the United States has approved several export licenses for Egypt covering such items as bombardier training planes, spare parts and a small amount of other material. In addition, the retransfer of lend-lease gun parts valued at $350,000 from Great Britain to Egypt has also been approved by the United States as is necessary in such eases.

The Department was encouraged to note that the King’s attitude at the time of your conversation appeared favorable to the lifting of Egyptian wartime regulations for the Suez Canal. While it is regretted no further developments in this connection have occurred since that time, it is hoped that the Egyptian Government will find means at an early date whereby it can raise the restrictions on the Canal.

Webb