Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 1

783.5 MSP/11–652: Telegram

No. 510
The Ambassador in Syria (Moose) to the Department of State¹

secret
priority

Damascus, November 6, 1952—8 p.m.

346. Dept pass Amman and Defense. In conversation reported Embtel 345, Nov 6, Col Shishikli mentioned US aid remarking that I had not raised this subj. He repeated four points made his previous conversation with Min Cannon.

1. The standard agrmt shld be modified fit special conditions in Syria. I replied that if wording of standard agrmt sole obstacle, feel sure changes cld be made standard text as long as it conformed applicable provisions of law.

2. Col. Shishikli stated Syria, as poor country, cld not make substantial contributions to project surveys. I replied wld inquire whether arrangements cld be made so that surveys not unduly burden Syrian treasury.

3. Col. Shishikli said Syria has no funds for construction capital works after surveys completed. IBRD loans had disadvantage high rate of interest. I replied TCA was basically program technical assistance, but some contributions supplied by US was feature most TCA programs. I warned that TCA cld not be Syria’s principal source of investment capital and that Syria shld look to such sources as IBRD and UNRWA.

4. Shishikli asserted Syria urgently needs arms in addition to capital works. I replied that 408 E agrmt wld make Syria eligible buy certain arms from US. He countered that if Syria had funds he cld buy all arms he wants. All his remarks subj aid indicated he wished aid program Syria be patterned after that of Turkey rather than after those in Lebanon, Jordan. I explained Turkish programs carried out under different provisions of MS legislation than TCA program.

Shishikli then referred means raising funds for Syria and suggested first tax on TCA equipment and supplies and, second special contribution by petroleum companies whose pipelines cross Syria. When I expressed undesirability and unlikelihood of both proposals he commented wryly his suggestions seemed unacceptable but expressed confidence in the end way wld be found to execute bilateral assistance program to mutual benefit.

Since it is clear Shishikli desires grant aid, answers fol questions needed for further discussion.

1. How much of $10 million originally programmed FY 1953 still available?

2. Shld Syrians be encouraged to hope for grant aid either by provision local currency financing or any other device?

Moose

1. Repeated to Amman, Beirut (for Locke), London, and Paris.